FannieMae Announcement 02-02 Appraising Manuf. Housing

[Charlotte Dixon]

Just got off the phone with Mr. Robert J. Engelstad, Sr. VP of FannieMae. In case you haven't heard, that announcement regarding appraising manufactured (more particularly) modular homes has been modified, or changed. The target date for enforcement was 4/30/02. This announcement previously stated that when we appraise a modular home, we must cite all, or at least two, modular comparables. If any of you need this newer announcement, please contact me and I'll send it to you. Mr. Engelstad will fax it to me on Monday.

Charlotte

 

[Bemis Pownall]

Id like to see it, ive seen the old one(2 weeks ago?)
I am doing a driveby of a MANUFACTURED HOME as a QC assignment. Seems the lender didnt like the fact that comps are 27 miles away on the full report someone else has previously done. Same comps I found +/-. Title hasnt been purged yet however, I think they really wont like that part of my report.
Oh well.
gee wish I got frequent flier miles for the miles I drive.

 

[Richard Carlsen]

In case you haven't heard, that announcement regarding appraising manufactured (more particularly) modular homes has been modified, or changed. The target date for enforcement was 4/30/02.

Charlotte;

Is he referring to HUD Code Manufactured housing or BOCA Modular housing? There is a big difference.

If you are talking about HUD Code, please stop calling them modulars. This only tends to confuse people. I know all of the Manufactured Housing sales people call them modulars but that is only to confuse the public.

So which is it: HUD Code Manufactured or BOCA Modular?

 

[Charlotte Dixon]

Richard...This is quoted from Fannie Mae:


Appraisal-Related Issues:
. . . appraising factory-built housing (including manufactured homes, modular homes, and other types of prefabricated housing)

APPRAISING FACTORY-BUILT HOUSING

The appraiser must identify the type of factory-built housing - as either a manufactured home, a modular home, or another type of prefabricated housing - in the appraisal report........and so on.....
The appraiser must address both the marketability and comparability of a factory-built home, by using comparable sales of similar factory-built homes. For example, modular homes should be compared to modular homes, single-width manufactured homes should be compared to single-width manufactured homes.....and so on....

Richard.....The above was quoted from the guidelines and FannieMae does not specify HUD Code or BOCA....
Do you want a copy of this? Or the new Announcement when I get it Monday?

 

[Farm Gal]

Charlotte:

Perhaps you can fax a copy to one of the more technosavy who can scan and post a link? or inquire of Mr. Englestead where on the web it might be found...

I would certainly like to see the latest modifications!

Thanks for the heads up!

 

[pkbarnhart]

The new Fannie Mae guideline is going to cause some trouble where I live. The guideline states that "the appraiser must also include in the appraisal report the manufacturer's name, the model name, the year of manufacture, and the serial number of the subject property. This information can be verified by reviewing the Data Plate/Compliance Certificate that is located inside the manufactured or modular home"

In our little town there are 100 or more modular homes built by Boise Cascade, IHD, R-Homes, etc. that were built in the 70's and 80's that have no Data Plate or Compliance Certificate that I am aware of. I have appraised three of these properties in the past week and have searched "high and low" for any indication of a data plate, etc. I can't find any. The homes appear to have been built to the UBC in place at the time of construction, were approved by the Building Department and for the most part take the appearance of site built homes. I have no problem with provding the same type comps but I can't comply with the rest of the guideline. I wonder what Fannie is going to do with the homes?

Maybe I can call them "other factory built housing"...does anyone know what this term means?

 

[Charlotte Dixon]

PK,
If you want the guidelines faxed to you (new and old) I'll be glad to do that. Just send me an e-mail with your fax number. I should have the new ones Monday.

Charlotte

 

[Richard Carlsen]

Most of the time the manufacturers name, date of manufacturer etc. is still in the house. I always check it and include this data in the report. One other item that is important in our area is the "snow loading". I actually found one with a 20 PSF snow loading in a location that gets about 200 inches of snow per season. This means the owner has to shovel the roof in order to keep it from collapsing. Functional to say the least.

When the manufacturers sheet is not posted in a closet, inside a cabinet door on the inside of the electrical service box (the three most likely locations) it becomes the owners responsibility to get the data for me from the manufacturer if the data is required in the report. The appraisal process, as I see it, does not include researching this kind of information or clearing title or doing surveys.

I would think that with this requirement, perhaps the housing manufacturers would make a more permanent place for a more permanent kind of posting in the house. One that the homeowner cannot remove.

 

[Jo Ann Meyer Stratton]

Just checked this out, but still haven't figured out all the steps. Access to info: http://www.efanniemae.com

Look for Lender Letter 01-02 dated 3/29/02, which Announces that Fannie Mae's Selling Guide has been updated, restructured and reformatted. The new Selling Guide will be available via AllRegs Online early the week of April 15. (thats where I got lost, AllRegs Online is offering a free 90 day subscription service so the new Selling Guide can be accessed, downloaded and printed, I subscribed but can't get any further than that).

In describing the changes to the Selling Guide it refers to Factory Built Housing, Chapter 3. The part that Charlotte originally refered to is that Fannie Mae has liberalized the requirement that at least two comparables have to be factory built. But for manufactured housing, two comparables of manufactured housing are still required.

So what that means out in the real appraisal world:

If the home was originally constructed to HUD building code, at least two of the comparables are required to be also built to HUD building code.

If the home was built completely or partially constructed in a factory to any other building code, the comparables utilized are not required to be built to the same building code.

Although for practical purposes, similar properties of similar building codes, style, amenities, quality of construction, construction materials, (after location is considered) etc, etc, (no matter what type of property being appraised) are the most logical indicators of market.

So if your subject was built to HUD building code, indicated either by the red HUD label on the exterior or the letter sized map of the USA, known as the data plate or Certificate of Compliance found inside the home or by research of documents--Fannie Mae still requires at least two of the comparables to be HUD code homes also.

If someone can figure out how to access the free AllRegs let me know!

 

[BigBlueGA]

I have appraised three of these properties in the past week and have searched "high and low" for any indication of a data plate, etc. I can't find any.

Look in the attic...

(Sorry, my little joke.. :lol: )