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Manufatured Or Modular

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hal

Sophomore Member
Joined
Apr 4, 2002
Professional Status
Certified Residential Appraiser
State
Michigan
Hi all. Got a question about a TRAILER. That is what I call them. Maybe I better be technical, so here it goes. A LO wants me to check into changing an appraisal from Manufactured to Modular. Can someone tell me what the h--- is the difference, other than a HO getting their refi $$$? Thanks in advance.
 

Bobby Bucks

Elite Member
Joined
Jan 27, 2002
Professional Status
Real Estate Agent or Broker
State
North Dakota
Hal Morgan I like your style. In my opinion, if they have to drive the largest portion to the thing to the site and there is a stigma after they attach the thing to the ground it is a TRAILER. LOs hate me for that reason, but stigma equates to lower value. I love that new term they use "on frame modular" which means "doublewide with a gold star". Of course if you're putting it in writing for an appraisal report, you best call it what it technically is......even if it's just a friggin trailer. :)
 

Mountain Man

Elite Member
Joined
Jan 15, 2002
Professional Status
Certified General Appraiser
State
Georgia
Call it what it is..... modular or manufactured(trailer ;) )
'splain the difference in the building code and appeal to the LO, hold the phone back from your ear, but don't bow down to LO's demands. The LO just needs to find the correct loan package.
 

Jo Ann Meyer Stratton

Elite Member
Joined
Jan 16, 2002
Professional Status
Certified Residential Appraiser
State
Arizona
Check out the new Fannie Mae Announcement 03-06, link in message below.

And the lender is responsible for correctly identifiying the type of home when selling the loan to Fannie Mae based on the information provided by the appraiser--which includes the information from the data plate inside the home. So if built to HUD code, it is a manufactured home--end of discussion with your lender!

Decided to add a sentence in the 03-06 that I like! "Lenders must have the requisite level of expertise to understand the property, titling, appraisal, and servicing issues associated with this product (manufactured housing built to HUD code)." Sounds like your lender doesn't!!
 

Bobby Bucks

Elite Member
Joined
Jan 27, 2002
Professional Status
Real Estate Agent or Broker
State
North Dakota
While on this subject, I'm curious what most of us put in the little box that says "manufactured".......do you put yes, no, maybe, sometimes or a simple I dunno. If I consider it an on frame modular or below I put yes. I have done reports on modular resales which sold for $500,000........on those I check no, but I still try my best to explain what it is in the extended comments and use the modular word. I must wonder how many high quality modulars are being resold and the person doing the report doesn't have a clue......marriage walls mean modular to me. When they surpass a certain level of quality and there is no market resistance, what does one say? if a dwelling has trusses does that technically make it modular? I'm curious if there are any lawsuits yet by buyers who purchased a high quality "modular" and then had a hissy when they refinanced and saw that word "modular" pop up.
 

Mike Garrett RAA

Elite Member
Gold Supporting Member
Joined
Jan 14, 2002
Professional Status
Certified Residential Appraiser
State
Colorado
Any home that is built in a factory and hauled to the site is technically "manufactured housing". From there you can have lots of different types. Check out our manufactured housing forum and then take a good continuing ed class on the subject.
 

Jo Ann Meyer Stratton

Elite Member
Joined
Jan 16, 2002
Professional Status
Certified Residential Appraiser
State
Arizona
Bobby: If it is for a FHA loan and the home is a modular built to a site built code then type Mod or Modular--it would not be a manufactured home. For Fannie Mae, the answer would be no, but you should explain in your addendum that the home was constructed in a factory to a site built code. Fannie Mae's new announcement 03-06 has a paragraph on:

Identification of Loans: "Our research indicates that in many cases lenders were not aware that mortgages they sold to Fannie Mae were secured by manfuactured homes. Accordingly, we remind lenders of their obligation to know whether a mortgage is secured by a manufactured home and to code it with the Special Feature Code 235 at the time of delivery."

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 locations."

So the appraiser's responsibility is to locate that Data Plate, I recommend take photos of it, copy down in their notes all the information that is in the upper left hand corner of that letter size piece of paper and then fill out the new 1004C. Then the lender will be able to code their paper work with the Special Feature Code 235! If the appraiser cannot find the Data Plate, take a photo of the HUD label on the exterior, provide that label number on the 1004C and whatever else you find out about the home, then the lender can go from there to gather the information they need (by the way do that anyway).

A modular home would not have a data plate, there fore it would not be a manufactured home and the lender doesn't need to worry about Code 235. And the new 1004C form would not be filled out.
 

Tim Hicks (Texas)

Elite Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
Texas
I knew if I waited long enough, Jo Ann would cover the bases and save me some typing. :beer:
 

Joshua Fookes

Junior Member
Joined
Jan 15, 2003
Professional Status
Certified General Appraiser
State
California
Hal,

Click on the links in Jo Ann's signature line, lots of helpful info for me.

Technical title is based on building code, she does a great job at explaining the differences.

Josh
 
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