HUD makes the rules for the FHA and Fannie Mae and Freddie Mac follow suit. So does the USDA.
24 CFR 203.43f(d)(iii) is the regulation HUD relies on to deny mortgages to relocated manufactured homes. The current HUD Handbook says if a manufactured home is moved from other than the dealer or factory (in other words, moved from its first siting) is not eligible for a mortgage.
Federal law, on the other hand (12 USC 1703) says HUD is to give the same benefits to existing construction, a house that's been at a location for more than a year, as it does to any other house: The insurance authority provided under this section may be made available with respect to any existing manufactured home that has not been insured under this section if such home was constructed in accordance with the standards issued under the National Manufactured Housing Construction and Safety Standards Act of 1974 [42 U.S.C. 5401 et seq.] and it meets standards similar to the minimum property standards applicable to existing homes insured under subchapter II.
HUD therefore has no legal authority to require any appraiser to report on the movement of manufactured homes. The states themselves regulate the movement of manufactured housing, collecting and verifying taxes are paid; in the state of WA, for example, the state's been regulating the movement of manufactured homes since 1961, when they were called trailers. HUD has no legal authority to punish the movement of manufactured housing by refusing mortgages.
Don't stop appraising, but please do spread the word to your lenders about any relocated manufactured home: they are helping HUD break the law, and losing money by by being forced to turn down writing manufactured home mortgages when the house has been moved.
24 CFR 203.43f(d)(iii) is the regulation HUD relies on to deny mortgages to relocated manufactured homes. The current HUD Handbook says if a manufactured home is moved from other than the dealer or factory (in other words, moved from its first siting) is not eligible for a mortgage.
Federal law, on the other hand (12 USC 1703) says HUD is to give the same benefits to existing construction, a house that's been at a location for more than a year, as it does to any other house: The insurance authority provided under this section may be made available with respect to any existing manufactured home that has not been insured under this section if such home was constructed in accordance with the standards issued under the National Manufactured Housing Construction and Safety Standards Act of 1974 [42 U.S.C. 5401 et seq.] and it meets standards similar to the minimum property standards applicable to existing homes insured under subchapter II.
HUD therefore has no legal authority to require any appraiser to report on the movement of manufactured homes. The states themselves regulate the movement of manufactured housing, collecting and verifying taxes are paid; in the state of WA, for example, the state's been regulating the movement of manufactured homes since 1961, when they were called trailers. HUD has no legal authority to punish the movement of manufactured housing by refusing mortgages.
Don't stop appraising, but please do spread the word to your lenders about any relocated manufactured home: they are helping HUD break the law, and losing money by by being forced to turn down writing manufactured home mortgages when the house has been moved.
