Appraisal Institute, Freddie Mac Unveil New Valuation Course on Manufactured Homes
April 16, 2019 08:00 AM
CHICAGO (April 16, 2019) – As part of their recently announced collaboration, the Appraisal Institute and Freddie Mac unveiled a new educational offering today in Dallas that is designed to teach appraisers the latest skills on how to value manufactured homes.
The Appraisal Institute’s new 7.5-hour course, developed with Freddie Mac, provides an in-depth look into preparing appraisals for traditional manufactured homes and offers insight into CHOICEHomeSM – the new type of high-quality manufactured homes that are built to HUD code but developed with site-built features, such as higher-pitch roof lines, permanent foundations, dry wall throughout, energy-efficient features, and site-built components, such as a garage or carport.
Appraisers will learn how to meet the new, specific requirements of Freddie Mac, the Federal Housing Administration, the U.S. Department of Veterans Affairs, the U.S. Department of Agriculture and Fannie Mae using a new, ground-breaking tool – the Manufactured Home Quality Rating Worksheet – which is consistent with the Marshall & Swift/CoreLogic Residential Cost Handbook and the Uniform Appraisal Dataset.
The course begins with a thorough review of existing manufactured housing products and then delves into CHOICEHome specifications, certification and CHOICEHome financing eligibility. Applying elementary and complex techniques used in the cost and the sales comparison approaches, appraisers work through a case study of these homes to develop a credible appraisal report.
Freddie Mac and the Appraisal Institute will offer more than 60 educational opportunities in classroom settings in nearly 30 states through November, meeting an important need in the marketplace for homebuyers, lenders, appraisers and homebuilders. Online classes also will be offered.
Besides today’s offering in Dallas, other initial classes will be held:
April 23 (Atlanta)
April 25 (Charlotte, North Carolina)
May 7 (Livonia, Michigan).
Learn more or sign up for classes here.
The Appraisal Institute’s collaboration with Freddie Mac provides practical appraisal training to all appraisers as well as specifically targeted training and case studies to address manufactured housing valuation assignments for Freddie Mac’s CHOICEHome. CHOICEHome brings conventional mortgage financing to factory-built homes to help increase the availability of quality affordable homes that borrowers want, while providing lenders with the innovative financing options they need.
Freddie Mac will treat loans secured by CHOICEHome like the loans secured via a single-family, site-built home. As a result, appraisers will be able to use site-built housing as a comparable sale for valuation. Recognizing that appraising manufactured housing comes with certain challenges, typically around availability of comparable sales, additional flexibility to also consider and appropriately adjust site-built homes is covered in the training.
The Appraisal Institute has led the valuation profession for over 85 years by developing and maintaining the “body of knowledge,” also known as appraisal methodology. The Appraisal Institute is known worldwide for providing high-quality education that has set a standard for excellence and thoroughness.
Manufactured housing is the largest source of unsubsidized affordable housing in the United States. It supports the needs of very low-, low-, and moderate-income borrowers; borrowers in underserved markets and rural areas; and certain other demographics. More than 22 million U.S. families live in factory-built homes today. With that number expected to grow, factory-built homes offer a meaningful way to address the affordable housing supply shortage and expand access to quality housing options.
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The Appraisal Institute is a global professional association of real estate appraisers, with nearly 18,000 professionals in almost 50 countries throughout the world. Its mission is to advance professionalism and ethics, global standards, methodologies, and practices through the professional development of property economics worldwide. Organized in 1932, the Appraisal Institute advocates equal opportunity and nondiscrimination in the appraisal profession and conducts its activities in accordance with applicable federal, state and local laws. Individuals of the Appraisal Institute benefit from an array of professional education and advocacy programs, and may hold the prestigious MAI, SRPA, SRA, AI-GRS and AI-RRS designations. Learn more at www.appraisalinstitute.org.