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  #21  
Old 08-08-2003, 11:26 AM
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I've thought all along that the only difference between a double wide and an on-frame mod was where they wanted to place the tags. Now here's a problem I ran into. I inspected an on-frame with no exterior HUD tags however there were 2 HUD stickers on the interior of the home (1 on electical panel and 1 in master bedroom closet). They were standard PFS numbers.

The local Genesis Homes plant employs a few friends so I asked them what the true difference was. 2 of them stated that there was no real difference as to quality and that the tags were the big difference. Another friend who has a white collar job at the plant stated that Mods must have HUD tags like a doublewide however they are on the interior not the exterior. So if he is right then all Mods should meet guidelines.

And to think that I closed a computer repair business to do this.....what was I thinking :lol:

I have seen these tags/stickers so I know they exist. Has anyone besides me thought of taking photos of these for permanent record?
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Old 08-08-2003, 12:22 PM
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Jo Ann Meyer Stratton Jo Ann Meyer Stratton is offline
 
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I have taken photos of the HUD label for about 15 years. Just started taking photos of the Data Plate about a year ago. I strongly recommend everyone take photos of both, as well as make notes of their information.

What building code was followed in the factory when those on frame modulars were constructed?

If they were constructed to HUD building code they are manufactured homes and even though the HUD label is missing, the information on the Data Plate inside would provide the name the manufacturer, the location of the plant where it was manufactured, the date it was completed in the factory, the model name or number of the home, the serial number that is used for identification and ownership purposes (which also should be etch or painted on the front metal I beam) and the HUD numbers that would match the HUD labels (if they are still attached).

If they were constructed to a site built code like UBC, BOAC, CABO, etc, etc, what paper work you find inside the home will depend on the law, requirements, etc in your state. However, with Fannie Mae's new guidelines in Announcement 03-06--there might be a problem. If the home is on a permanent chassis (I am assuming that is what you mean by "on frame"), Fannie Mae now considers it a manufactured home. Where the problem arises is the lack of a data plate and compliance with HUD building code. Because it lacks the data plate that verifies the HUD building code and is on a permanent chassis, Fannie Mae will not buy the loan! So your lender will have to find a different source of funding than Fannie Mae, maybe Freddie Mac or FHA or VA or a private lender.

So you need to call your client. The lender then needs to verify the building code that was followed with the factory where the home was constructed. You, as the appraiser, would decide what other homes in that specific market a buyer of the subject property would consider--other on frame modulars or HUD code manufactured homes or maybe even a site built. But you decide based on your familiarity with the subject's market. It will be your client's problem to figure out how it will be funded.
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  #23  
Old 08-08-2003, 01:43 PM
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This is going to be the cause of some lawsuits.

Awhile back, there was a lawsuit where the owner of a modular home sued a realtor for disclosing the home was modular. The owner won. The court stated that since the home was built to the same (BOCA) code as a site built home, that the realtor was discriminating against the home. I know of a few MLS systems that removed all references to modulars after that.

Now, you go out and find a frame-on modular and disclose it. The loan gets turned down dueto a lack of HUD labels. The owner says wait a minute, this home was built to the same code as any site built home. That is discrimination.

Has anyone checked with their E & O carriers to find out if they are going to issue any alerts on this type of property?
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  #24  
Old 08-08-2003, 02:57 PM
Rich Heyn Rich Heyn is offline
 
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Bill,

If the loan is turned down because Fannie Mae won't purchase or securitize loans on "on-frame" modulars it's due to Fannie's eligibility requirements, not any neglegence on the part of the appraiser.

I don't see any undue liability for the appraiser as long as he or she is reporting factual data.

It does speak to the importance of having specific education in this area. That is what Fannie Mae is asking the appraiser to sign in the new supplemental certification on the new 1004C.

A more likely scenario, I believe, goes something like this:

Appraiser incorrectly identifies an "on-frame" modular as a HUD code home. Easy enough to do since many of the OFM's look basically identical to their HUD code counterparts. Fannie purchases loan, thinking it's a HUD code home. Loan goes bad and Fannie goes through the file with a fine-tooth comb. Finds appraisers error and exercises their recourse option with the lender. Lender has to buy back the loan, sues appraiser on the basis that they would have never made the loan if they had known it was an OFM.

Rich Heyn

P.S. Can you send me any particulars on that modular-realtor-lawsuit story. It would make a great discussion point for my seminar on Avoiding Liability?
  #25  
Old 08-08-2003, 02:59 PM
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The two paragraphs in Fannie Mae's Announcement 03-06 that creates the problem are:

Definition of a Manufactured Home
Any dwelling unit built on a permanent chassis and attached to a permanent foundation system is a "manufactured home" for the purposes of Fannie Mae's guidelines. Other factory built house (NOT built on a permanent chassis), such as modular, prefabricated, panelized, or sectional housing, is NOT considered manufactured housing and continues to be eligible under the guidelines stated in the Selling Guide.

Property Eligibility
Manufactured homes MUST meet the following conditions:
The manufactured home MUST be built in compliance with the Federal Manufactured Home Construction and Safety Standards that were established June 15, 1976 (as amended and in force at the time the home is manufactured) and that appear in HUD regulations at 24 C.F.R. Part 3280. Compliance with these standards will be evidenced by the PRESENCE of a HUD DATA PLATE that is affixed in a permanent manner near the main electrical panel or in another readily accessible and visible location.

So a home on a permanent chassis must be built to HUD code to qualify for the loan to be sold to Fannie Mae.
If it was not built to HUD code than a different type of financing will have to be arranged.

What ever documentation your state puts inside or outside of a home constructed in a factory to any other type of building code will not meet those two paragraphs and Fannie Mae will not purchase the loan.

In the past any home constructed to HUD code was a manufactured home, and any home constructed to a site built code (whether on frame or off frame) was considered by Fannie Mae, FHA, etc to be a modular home. Now Fannie Mae has deviated from the other lenders and considers a permanent chassis to be the main criteria for a manufactured home. Which means they consider mobile homes constructed prior to June 15, 1976 also manufactured homes but they will not quality for financing either because there wasn't a HUD code in effect at the time of their original construction, no matter how much they have been reconstructed and renovated and remodeled, etc, etc.
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  #26  
Old 08-09-2003, 07:25 PM
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Ok I spoke with my friend that works for Genesis again today. He said and I quote "Every home manufactured with a frame under it is required, by law, to have HUD tags". He said that the difference was that on "double wide mobile homes" that the tags are affixed to the end opposite the tongue. On Modular homes the tags are actually stickers that are on the inside of the home. He went on to state that one of the reasons for affixing these to the inside is that many homes are being custom ordered without siding and brick veneer was being place around the outside once the home was on site. Genesis now manufactures Modular homes on frame and off. He said that both were manufactured to the same code as site built homes per North Carolina law. Honestly I'm so confused now I'm even suspicious of site built homes. I know different states have different laws but if the stickers are the HUD tags does it meet FMNA requirements or do they want the exterior plates?
  #27  
Old 08-09-2003, 08:46 PM
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The HUD certification label is a metal tag 2" x 4" that is permanently affixed to the exterior of the home. It is to be etched on 0.32 inch thick aluminum plate. On the label is the following statement:

"As evidenced by this label No. (3 alpha characters) (6 numeric characters), the manufacturer certifies to the best of the manufacturer's knowledge and belief that this manufactured home has been inspected in accordance with the requirements of the Department of Housing and Urban Development and is constructed in conformance with the Federal manufactured home construction and safety standards in effect on the date of manufacture. See data plate."

The three alpha characters indicate the inspection agency that inspected the home while it was under construction in the factory and verifies the home was constructed to HUD building code. A manufactured home cannot leave the factory without that label. In some states the home cannot be resold without that label, in the majority of states it can be resold if the label is missing or obscured.

For homes that have all the siding installed in the factory, the label is attached to the tail light end of each section as it is towed down the road, approximately one foot up from the floor and one foot from the road side (road side is on the right as you view the home from the tow bar end of the section). For homes that have the "tail light" end sided after the home is installed on site (which covers up the marriage line), the label is affixed to the lower left front (length-ways of the section) and lower right rear (or closest to the tail light end that can be done on the factory installed siding).

See 3280.11 of the HUD building code.

The data plate is affixed in the interior of the home. The data plate is made of a material that is able to receive typed information (paper) as well as preprinted information. Each data plate shall contain not less than the following information:

( a ) The name and address of the manufacturing plant in which the manufactured home was manufactured.
( b ) The serial number and model designation of the unit and the date the unit was manufactured.
( c ) The statement: "This manufactured home is designed to comply with the Federal Manufactured Home Construction and Safety Standards in force at the time of manufacture."
( d ) A list of the certification label(s) number(s) that are affixed to each transportable manufactured section under Section 3280.8
( e ) A list of major factory installed equipment, including the manufacturer's name and the model designation of each appliance.
( f ) Reference to the roof load zone and wind load zone for which the home is designed ----------------------
( g ) The statement: This home has--has not-- been equipped with storm shutters or other protective coverings for windows and exterior door openings.------------
( h ) The statement: " "Design Approval by", followed by the name of the agency that approved the design."

See 3280.5 of the HUD building code

Section 3280.12 is in regard to modular homes.

I can email you photos of a HUD label and a data plate, if you send me a private message. Or would a 25kb and a 41kb photo be small enough file to post as a message on this forum???

Genesis is constructing off frame modulars in the same plant in Chandler, AZ as their HUD code manufactured homes. The manufactured homes have the red HUD label on the exterior and the HUD data plate on the interior as required by HUD. Arizona does not require their modular home sticker/label in any specific location--so that might be in the attic on a rafter which won't be visible to a typical observer. Cavco builds on frame modulars in AZ, and they have a blue aluminum Arizona label regarding UBC that is attached to the right rear of the home (or on the left if they change their mind from HUD code to Uniform Building Code in the middle of construction). The modular homes are under the jurisdiction of the local state/county/city so those will vary all across the country. The manufactured home is the same any where in the country because they are constructed per national HUD requirements as stated in the HUD code 3280.

Fannie Mae wants the information from the data plate that is in the interior of the home, maybe in a cupboard, closet, furnace area, by electrical panel, on wall in utility room, etc. It is typically a letter sized piece of paper with a map of the USA on it that shows insulation and roof loads requirements for different parts of the country. Usually headed Certificate of Compliance or Compliance Certificate or similar wording. And has all the information listed in 3280.5 above.

Modular homes, regardless of where they are constructed will not have a data plate in the interior and will not have a HUD label on the exterior. Depending on the laws and requirements of your state/county/city, they might have some type of insignia, information sheet, etc either on the exterior or in the interior--but that varies from location to location. The lack of the HUD data plate for a modular homes constructed on a permanent chassis is a home that won't be able to be financed with a loan that can be sold to Fannie Mae. It will still be able to obtain FHA or VA or other types of financing.
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  #28  
Old 08-10-2003, 08:57 AM
Rich Heyn Rich Heyn is offline
 
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Richard,

I'd be very surprised if your friend at Genesis was correct. That business about every home with a frame under it being required by law to have a HUD label just doesn't ring true unless it is something specific to NC. Basically, if it has a HUD label, it's a manufactured home, not a modular.

When I was teaching in Phoenix earlier this year, Jo Ann was kind enough to set up a tour of a Cavco factory where they were building "on-frame" modulars. We saw homes that looked pretty much identical to their HUD code counterparts, metal chassis and all, but did not have the HUD label.

Look at it this way:
1) If it has a HUD label (2"x4", on the outside) it's a manufactured home. OK with FHA, Fannie and Freddie.

2) If it is on a permanent chassis (usually metal frame) but has no HUD label(s), it's likely to be one of three things; a manufactured home with missing HUD label(s), an older mobile home or an "on-frame" modular. The apparent age will provide an indication. There hasn't been a mobile home built in the US since June 15, 1976. You can also look around inside for various manufacturers stickers that may identify it. If you find a Data Plate/Compliance Certificate, it's a manufactured home. If it's a modular, you might find a different type of sticker inside. Now, if it's a mobile, that's not OK with FHA, Fannie or Freddie. If it's an on-frame modular, that's OK with FHA and Freddie, but not with Fannie. At least not right now. I won't be surprised if Fannie revises their eligibility requirements and accepts "on-frame" modulars at some time in the future.


Jo Ann,

You can save yourself the trouble of sending Richard images of the HUD label and Data Plate. The first url you referenced in your post today to the "Missing Label" thread mentions HUD labels and Data Plates. Richard can simply click on those terms it will display some nice images.

Rich Heyn
  #29  
Old 08-10-2003, 09:49 AM
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Thank you Rich! I had noticed that HUD label and data plate were highlighted but I thought that was to emphasize the two terms. Didn't think about clicking on the words!

By the way the plant we toured was the Genesis plant that built HUD code homes and "off frame" modulars. Genesis is using the same floor plan, materials, etc for their HUD code Pueblo manufactured homes and their UBC Pueblo "off frame" modular homes. The HUD code Pueblo home will have the HUD label on the usual location on the rear of the home. The modular Pueblo home will have a state of Arizona insignia somewhere in the rafters and not easy to find or observe. The only difference an appraiser will be able to distinguish is the underside of the home. The HUD code Pueblo will have a permanent chassis underneath. The UBC Pueblo will have wood floor joists and framing. Exterior sides and roof and the interiors are exactly alike. If the appraiser can't find the HUD label on a Pueblo, then they will definitely have to stick their head into the crawl space to see if there is a steel undercarriage or not. And look in every nook and cranny for the data plate. The one that was installed here in Safford had the HUD labels on the exterior but I couldn't find the data plate anywhere and the owner had never seen a piece of paper with a map of the USA. they even dug out all their paper work from the manufacturer. We finally decided the data plate must have been placed inside the closet for the water heater which had a panel door screwed onto it with about six screws and was behind the closet with 97 boxes in front of the panel door. But at least I had the HUD label and all the information on the Affidavit of Affixture that had been recorded so I would have been able to fill out the 1004C if it had existed at that time.


We discussed the Cavco plant with the HUD code homes and "on frame" modulars which are on the west side of Phoenix, but didn't go through the plant. If you are ever instructing in Phoenix again, I will arrange a tour of the Cavco plant. But they build very few of the "on frame" modulars anymore since the zoning of the two biggest counties (the state of Maricopa and the state of Pima) now allow a manufactured home to be placed any where it will be compatible with the neighborhood. In the past HUD code homes could only be placed in a subdivision for manufactured homes or the site had to be larger than five acres. The other small counties still have the restrictions in their zoning for HUD code "mobile homes", so they occasionally get an order for an "on frame" modular. Have a situation here in Graham County, where the owner started out with a Cavco HUD code home, town of Pima decided that would be against their zoning, so construction of the home was switched to UBC, which would be in compliance with their zoning and the home installed. So Cavco placed a metal plate over the original HUD label, then the State of Arizona UBC insignia on top of the metal plate. Neighbors upset about the appearance of the home--so the blue state insignia has been the most popular item to be viewed in the town for the past three months. Because that blue insignia means it is a modular home--and not a "trailer". I don't know if they left the data plate inside or not. If Fannie Mae does not change their guidelines regarding "on frame" modulars, that home can't be financed with a loan that Fannie Mae will purchase.
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  #30  
Old 08-10-2003, 10:23 AM
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Ok I pulled the file on a supposed on-frame I did a while back. Here is partial info on this home. What is it?

Frame present beneath home

North Carolina 6 digit state Serial

Manufacturers Serial located on Information sheet (data plate?) with all home information stating its Modular

1 HUD label located on Electrical panel numbered HWC-M####6 - Rear section

1 HUD label located in Master Bedroom Walk-in Closet numbered HWC-M####5 - front section

The home was built by Clayton Homes and the data plate(?) was identical to a manufactured home however this home has a North Carolina seal making it an approved Modular home. The data plate also stated it was modular. The only thing that is confusing me is the HUD labels. They area IDENTICAL to the ones found on the exterior however these are plastic stickers and are white with black type. These are the ones that my friend stated had to be on the homes if it has a chassis. I know that building codes are different for each state.

This is all too confusing. I'm thinking that there may be something in our state codes that doesn't exist in other states. Everyone knows that North Carolina is one of the most screwed up states in the US. I hope this doesn't sound like the same as my earlier messages but this was actually documented (should have taken photos).
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