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June 29, 2007

Fannie Mae Releases New Guidance on Manufactured Homes, Appraisals

Fannie Mae has issued new guidance regarding their manufactured housing guidelines and credit standards including the language in the a ppraisal standards subsection. The new language states that f or purchase money mortgages, the lender must provide the appraiser with a complete copy of the executed contract for sale of the manufactured home and land, or if the manufactured home and land are being purchased separately, the executed contract for each.

In addition, the lender must provide the appraiser with a copy of the manufacturer's invoice if the home is new. The appraiser must analyze the contract (and manufacturer's invoice for new homes) and summarize his or her analysis in the appraisal report. The appraiser must not include any non-realty items such as insurance, warranties and furniture in the value conclusion. Fannie Mae’s appraisal report forms require the appraiser to develop an opinion of value solely for the real property as completed (consisting of the manufactured home, site improvements and the land on which the home is situated) that is the subject of the appraisal.

For a mortgage to be secured the manufactured home must be built in compliance with the Federal Manufactured Home Construction and Safety Standards that were established in 1976 and that appear in HUD regulations. Compliance with these standards will be evidenced by the presence of a HUD Data Plate/Compliance Certificate, a paper document located on the interior of the subject property that contains the manufacturer's name and trade/model number, among other things. This is not to be confused with the HUD Certification Label, which is a metal plate (sometimes referred to as a HUD "seal" or "tag") located on the exterior of each section of the home.

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