Modular or Manufactured, need help please!

[Mr Rex]

timd thinks I post without knowing whatsup.

 

[Couch Potato]

If it has a chasis, it is a manufactured home as far Fannie Mae is concerned regardless of what code it was built to and regardless of whether the builder calls it a modular home or not. See my last post. If the appraisal of the 2nd property was done for a Fannie Mae loan, it needed to be appraised as munufactured housing. If the second one does not have the HUD data plates and was not built acording to HUD the manufactured housing code, then Fannie will reject this property. If you appraised it as not being a manufactured house, you could have some serious liability issues.

I suggest you read again. Although the 2nd on is "factory built," it does not have a chassis and it therefore not considered a manufactured home by fannie. The reason people put so much emphasis on the HUD tags and Data Plate, is because it is all about the building code. True, fannie calls an "on-frame" modular a manufactured home, but then they say they won't buy a loan made on one making that designation moot. The only properties that go on a 1004C are those with improvements built to the HUD code. The only way to know if the improvements are built to the HUD code are the HUD Tags and the Data Plate.

Which is the modular and which is the manufactured?

 

[Greg Bell]

It seems people here and the general public gets hung up on the HUD plate issue to determine whether or not a home is a manufactured house or a modular house. If this is for a Fannie Mae loan, it is defined as a manufactured home if it has a permanent chassis, regardless of whether or not it was built to HUD specs. If it is a manufactured home according to the Fannie definition, then whether or not it was built to HUD specs determines whether Fannie will do the loan. If it is a so called on frame modular and that "frame" is really a chassis, then, according to Fannie Mae, the house is a manufactured home no matter what it is called. Here is the applicable guideline:

VII, 102.07: Factory-Built Housing (06/15/07)
We will purchase or securitize a conventional mortgage secured by factory-built housing (such as a manufactured home, and modular, prefabricated, panelized, or sectional housing). Any dwelling unit built on a permanent chassis and attached to a permanent foundation system is a “manufactured home” for purposes of Fannie Mae’s guidelines. Other factory-built housing (not built on a permanent chassis), such as modular, prefabricated, panelized, or sectional housing is not considered manufactured housing and is eligible under the guidelines stated in this Guide. We specify certain eligibility criteria that apply to any mortgage that is secured by a manufactured home, and other criteria that apply only to other types of factory-built housing.
A.Manufactured homes. The manufactured home must be a one-family dwelling unit that is legally classified as real property. The towing hitch, wheels, and axles must be removed and the dwelling must assume the same characteristics of site-built housing. 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.

I wonder why the Manufactured section does not state "attached to a permanent foundation system" like the modular description.Hmmmmmmmmm:new_squarecycle: :new_squarecycle:

 

[Rich Heyn]

Reporting an appraisal of an on-chassis modular highlights the importance of problem identification relative to intended user. If the client intends to sell the loan to Freddie or keep it in-house, reporting an on-chassis modular on a standard URAR would be appropriate in most cases, although proper disclosure for liability protection would be prudent.

Developing and reporting an assignment involving an on-chassis modular for a client who intends to sell the loan to Fannie or any entity who follows Fannie guidelines would be pointless. While Fannie may classify an on-chassis modular as "manufactured," they will not purchase or securitize such a loan as the "manufactured" home was not built to the HUD code.

Note:
"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."

 

[Caterina Platt]

Rich,

Don't have the full set of regs in front on me, but I was reading the excerpt posted by timd as a change in definition. Do you still interpret the regs to state 'manufactureds must be built to HUD code' and still disallowing on frame modulars?

 

[Rich Heyn]

Rich,

Don't have the full set of regs in front on me, but I was reading the excerpt posted by timd as a change in definition. Do you still interpret the regs to state 'manufactureds must be built to HUD code' and still disallowing on frame modulars?

Hi Cat; long time.

Fannie hasn't really changed anything since they came out with the 1004C addendum in 2003. Their definition remains different from that used by the rest of the world in that they include anything on a permanent chassis in their definition of "manufactured home" (which includes mobiles and on-chassis modulars). However, since they will not purchase loans on anything that is not built to the HUD code, mobiles and on-chassis modulars are not eligible for Fannie. Freddie and FHA are OK with on-chassis modulars but not mobiles.

Former Regular,
Rich

 

[Caterina Platt]

Hi Cat; long time.


Former Regular,
Rich

Good to see you again.

Not in here much myself these days.

 

[David Beasley]

Which is the modular and which is the manufactured?

Well, since you only included mini mini-renderings and not "photos" that I could enlarge and really study, I will have to guess that the play here is on the windows - casement or slider appearing on the left, regular single/double hung looking on the right. Typical convention suggests the cheaper looking and more prevalent single/double hung style on manufactured, so I am going to go the other way and say the one on the right is modular, the one on the left is manufactured.

Reverse engineering trick questions is easy. What do I win?

 

[Mary Tiernan]

I am leaning to the left also, and it does have to do with the windows, but not for the same reasons.

Side wall height - house on left has no space between window and roof line - typical manufactured configuration.

 

[Caterina Platt]

Umm, Couch.....keep in mind I come from the land of brown, dry, barren landscapes (nothing every really has that vibrant color in real life in my world.) as I ask this question, but isn't the picture on the right a computer generated phony?

At any rate, the alleged computer phony looks like the Fleetwoods I used to sell.

Regardless, those who try to guess from pictures of the exterior alone are bound to be duped at one point or another. It's akin to the doctor diagnosing a patient over the phone.