Strange UW request? Or not?

[Mountain Man]

I did an appraisal on a modular home. Got a request from the UW: the appraiser is to make a comment that the home meets FMNA/FHLMC requirements. This did not seem right to me, do they want me to do their job as well? I wrote a very extensive report with a looong addendum of the features, copy of the deed, tax information, lots of photos, etc. I included more than usual in the report because this is a home with a very nice addition, not your typical mobile home addition done by the owner. I am not sure if I am being a little too hard nosed, or if I am just dealing with a newbie UW that needs to be educated about my job, and their job. I think that if they ask for any more info, other than what I can visually see, I am going to tell them to get an inspection report. Below is the response I wrote. What do you think? :?


Mell.

The following page is the Manufactured Housing Addendum that was included in the appraisal report. On question # 12, “Was the unit build under the Federal Manufactured Home Construction and Safety Standards that were established 6/15/76?” I checked yes. This is a newer, manufactured home that conforms to other neighborhood properties, is readily marketable, and is typical for the neighborhood. The subject is deeded as real estate, and is taxed in Habersham County as real estate. It is set upon concrete piers that visually appear to be on footings, see the photos in the appraisal report, and has metal tie down straps. Vinyl skirting is around the exterior, except the new addition which is on concrete block.

I know that the subject property was financed by a typical bank loan before, however, to determine whether or not the subject meets FNMA or FHLMC financing is an under writing question. That is for the under writer to determine, using the data provided by the appraiser.

I hope that this information helps in answering any questions as to the marketability of the subject property. Please contact me if you need any additional information.

 

[Anonymous]

In your post, you state that you did a "modular home", then you speak of the manufactured home addenda.

How are the rest of the states handling this? In NC, a manufactured home is built to HUD standards. A modular home is built to NC building code. Two totally different animals. The terms on not interchangeable, though many manufactured home sales people seem to think they are.

Which was it that you did?

 

[Jo Ann Meyer Stratton]

Yes, not only in NC but nationawide for financing. Local governments confuse the issue by using the terms interchangably. But for financing purposes, if it is built to the HUD building code first established June 15, 1976, it is a manufactured home. If it was built prior to that date, and may have been built to an industry wide code for mobile homes, it is a mobile home. If it was built to a building code similar to site built homes, UBC, CABO, BOAC, etc--it is a modular home. So regardless of what your local government or loan officer or dealer or home owner calls it--the original building code determines the correct terminolgy for financing. HUD building code is national.

Did you take a photo and include the number of the certification label (if HUD code) affixed (hopefully) to the left rear of each section (or left front and right rear of the sides if the siding installed after placement on site)? Did you take a photo and include the info from data plate, sometimes the the Certificate of Compliance that should have been somewhere inside the home? Maybe that is what the underwriter is looking for. If it is a mobile home that has been reconstructed to HUD building code, the underwriter needs proof from a licensed contractor or government agency that the home now meets at least the 1976 HUD building code.

Have you seen Fannie Mae's Announcement 02-02? They have clarified some of the guidelines for factory built homes. Except they have a technical glitch. Modular homes do not have certification labels or data plates/compliance certificates. They might have an insignia issued by the state or local government indicating they are a modular home. But there is not any nation wide identification for modular homes.

 

[jtrotta]

Mell, not familiar with "manufactured homes", but at a quick glance of your response, you state;

"I know the subject property was financed by a typical Bank loan before, however, to determine whether or not the subject meets FNMA or FHLMC financing is an underwriter question. That is for the underwriter to determine using the data provided by the appraiser."

Now the way I'm reading this, you gave them the opening to ask You as noted in the quote of your response 8O

Now your questioning them as to why they're asking :? Haven't read your report, but from what you've supplied in the response-they appear correct in asking 8)

Not taking sides, but that's the way I read it :!:

 

[Mountain Man]

The subject is a double wide, modular home, it is not a mobile home. And we do have some manufactured homes in the area. They really look nice, and you can't tell that they were not site built with out doing a through inspection. But there is a difference, and I am aware of the difference.

The addendum is an old addendum I have seen before, but don't really care for, called a Manufactured Housing Checklist. Miss labeled or miss named it may be, but it is something that some lenders in my area require. I usually fill in the parts like the title or VIN number, make and model, etc. But the checklist has several questions that are structural in nature that I always refuse to complete, like "was the foundation system designed by an engineer to meet the soil condition of the site?". I tell them to get an engineering inspection for those items.

Mell.