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Factory-built Housing

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Joined
Feb 16, 2003
Professional Status
Licensed Appraiser
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California
:huh:
Client (big one) says THEIR guidlines require me to describe these wobbly-boxes as "MODULARS" even though they are delivered to the site towed behind a Kenworth, have a metal frame undercarriage, wheels and a tongue (which are removed after the floors are installed and bolted to the concrete foundation) HUD tags, and are added to the assesor's roll when the Building Official signs them off.

I read where a MODULAR is quite different: Built to local codes only, delivered on a trailer, and bolted to the foundation as well.

Everyone who sells these wobblers around here referrs to the as "MANUFACTURED" not "MODULAR". SO: Which is it? I'm voting for MANUFACTURED>


TN
 

Mountain Man

Elite Member
Joined
Jan 15, 2002
Professional Status
Certified General Appraiser
State
Georgia
Wait for JoAnn to give you the through answer, but in short. What code is it built to?? HUD, then it's manufactured. Other codes (Southern Building Code, ANSI, ETC....) it's modular. Metal framing doesn't mean anything.

Now comes the time to stand up and edgumikate your client, if it does have HUD tags, and a manufacture's data plate, it IS manufactured. Call what it is.... don't let them mandate that you call it something else. It's your license on the line! ;)

Long, long ago, I Had a client like that. Lost them because I told the truth. Found out they could not sell the loans if it were called manufactured....... deceiving the lender. I was worried about losing a previously high production client, but it made me feel really good when I learned the truth. They went under, too many bad loans and having to buy some back. Me, I'm still in bizniz...... been doing real estate the right way since 1989.
 

Charlotte Dixon

Senior Member
Joined
Jan 16, 2002
Professional Status
Certified Residential Appraiser
State
Delaware
http://www.naifa.com/gram/2001oct/stratton-oct01.html

I'm going to beat Jo Ann to it and share the above with you. Jo Ann is the first and last word regarding this subject. This site is in my favorite places on my computer and I refer to it often. THANK YOU JO ANN! :beer:

I only take credit for "knowing" her from being on this Forum and we all have much respect for her knowledge.
 

jeff samolinski

Senior Member
Joined
Apr 18, 2003
Ok now you all have gone and done it to me. This area has been one of my biggest pains. Have gotten quite pedantic about I've been told.

First let me thank Charolette/Jo ann for the great post on this topic. Will use it at next staff meeting and many other situations.

Secondly, I have had a variety of lenders send me a variety of forms they want me to complete which they say are required by Fannie Mae. You know, is the foundation permanent and below the frostline, is it real property, etc.... My beef is that I normally will certify only portions of the requested items such as Have all the wheels axels and hitches been removed, subject will compete well in the market area an dis legally permissible, HUD labels if available. But they typically want me to "certify the foundation/soil condition requirement by Fannie Mae and some of them have other items that I do not feel an appraiser is qualified to certify. Of course when I refuse to certify those items they tell me that all their other appraiser routinely sign off so what's my problem.

The problem as I see it is that Fannie Mae guidelines do not state specifically to the lender who is to certify that the manuf. home meets their requirements. Have written letters to Fannie Mae informing them of this problem and that lenders are pressuring appraisers to sign off on these items. Have copy my local Congressman also. Fannie Mae response is that they leave it up to lenders to comply. My solution was request to Fannie Mae to consider clarification of their requirements and who can certify what much like HUD does. Idea fell on deaf ears.

Any ideas from Jo ann or others?
 

Charlotte Dixon

Senior Member
Joined
Jan 16, 2002
Professional Status
Certified Residential Appraiser
State
Delaware
Originally posted by jeff samolinski@May 6 2003, 06:37 AM

First let me thank Charolette/Jo ann for the great post on this topic. .....

Any ideas from Jo ann or others?

Don't thank me....please, thank Jo Ann..

Jo Ann, it's all yours !!!! :rolleyes:
 

Jo Ann Meyer Stratton

Elite Member
Joined
Jan 16, 2002
Professional Status
Certified Residential Appraiser
State
Arizona
Thank you everyone for all the kind words!! You all are going to give me a swelled head! But the next time the phone rings, somebody will bring me down to earth by telling me how stupid I am.

Anyway, maybe provide your client with a copy of Fannie Mae's Section 304 that went into effect 6/30/2002. Also Chapter 1-09 of the National HOC Reference Guide. And click on my signature below which takes you to my article which provide links to HUD and the Manufactured Housing Institute's websites which again describes manufactured homes build to HUD construction code. Fannie Mae requires information from the data plate inside the home to be included in the report. Modular homes do not have a data plate. Depending on your state, it might have some type of insignia or information outside or inside. But manufactured homes have a HUD label attached to the home on the exterior and a data plate somewhere inside the home before it leaves the factory. It can't leave the factory and be sold by the manufacturer without those two items. They are sometimes removed after it leaves the factory--but the factory issued a MSO (Manufacturer's Statement of Origin) when they sold the home to the first buyer and that is on record somewhere, depending on the laws of your state. That is another indication it is a manufactured home. Manufacturers sell modular homes with bills of sale. Several manufacturer's have told me they are going to start building more modulars instead of manufacturers because they can get higher appraisals for modulars. So that is why dealers, manufacturers, real estate agents, etc, etc, etc don't want to use the "manufactured" word. But the building code that was followed is what determines the correct terms. And the building code needs to be commented on because of the above quoted Fannie Mae and HUD references.

I hate those check lists, I only answer what is within my expertise as an appraiser and then type the following sentences every place I think it is necessary.

"The appraiser has observed the property for the purpose of offering an opinion of value only and is not a licensed contractor, installer, home inspector, or professional engineer."

"If the client has any concerns regarding the frost line or soil conditions of the site or the foundation system, a professional in that field should be consulted."

Also watch the main website of naifa.com for my new article.
 

Mountain Man

Elite Member
Joined
Jan 15, 2002
Professional Status
Certified General Appraiser
State
Georgia
But they typically want me to "certify the foundation/soil condition requirement by Fannie Mae and some of them have other items that I do not feel an appraiser is qualified to certify. Of course when I refuse to certify those items they tell me that all their other appraiser routinely sign off so what's my problem.

Yeah, I get the exact same line. Charles Clark, GA RE Commissioner, sent a letter out warning appraisers to not fill those things out. It makes the lenders really happy, but I say nope ......... I plan to keep my license.

Pam sent me a copy of the check sheet from Alamode. That is a pretty good one, and I have used it in lue of the old one. It does not ask the appraiser to "certify" the foundation. My software provider has a new manufactured home check sheet coming out, waiting to see what it looks like.
 
Joined
Feb 16, 2003
Professional Status
Licensed Appraiser
State
California
Thanks folks: I already referred the local branch people to their underwriter who told me essentialy what we already know - built to UD specs. = MANUFACTURED

Incedently, the only boxes I ever check on one of those Manufactured Home Checklists are: Unkn.

TH
 
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