| FNMA Manufactured Homes Announcement 03-06 |
| Sunday, 27 July 2003 | |
|
FNMA Manufactured Homes Announcement 03-06 Following is our summary of the FNMA Manufactured Homes Announcement 03-06. The summary briefly referrers to the topics that deal solely with loan origination issues and is focused on requirements that relate to our clients in default servicing. Please note, the following summary is provided for general information purposes, and as a convenience to our clients and friends. It is not to be considered an official publication of FNMA regulations or provisions. For a complete version of the referenced release, please link on
the following:
Summary These new guidelines supersede existing policies concerning mortgages secured by manufactured homes as contained the Selling Guide (Parts V, VII, X, XI, and XII) and the Servicing Guide (Parts III, VII, and VIII). The Announcement deals primarily with loan origination issues, including Property Eligibility, Mortgage Eligibility, Eligible Transaction Types and LTV Ratios, Underwriting, Pricing Adjustments, Mortgage Appraisal Requirements, and Title Issues. The Announcement states that any servicing requirements addressed in the letter are to be implemented as of August 24, 2003. Our review suggests that the servicing issues addressed in the Announcement that are of interest or concern to our clients are largely restatements and/or amplifications of servicing requirements currently in place. Mortgages secured by manufactured homes must be identified with Special Feature Code 235. If such a mortgage is delivered to FNMA without the 235 notation, the servicer must request a change in coding by submitting a spreadsheet to FNMA with the following information: 9-digit Fannie
Mae servicer identification number, For loans applied for after August 24, 2003, servicers must maintain any of the following that may exist so that they are accessible if necessary for any bankruptcy or foreclosure proceeding or any other servicing purpose. Servicers must assure that the manufactured home and land are taxed as real property on a single tax bill. If this is not possible under applicable law and the manufactured home must be taxed separately as personal property, the servicer must escrow for both real estate and personal property taxes. Should a mortgage be modified, if FNMA's mortgage lien is created, evidenced, or perfected by collateral documents that are not recorded in local land records, the servicer must take such action as is necessary to ensure that FNMA's lien status is protected. With regard to foreclosure and bankruptcy proceedings, FNMA reminds servicers of several existing requirements and provides clarification and guidance on these requirements. The following pre-foreclosure property inspections are required
for all mortgages: The pre-referral inspection should include an assessment of whether the property is improved by a manufactured home. If it is, the inspection report should include any identifying number(s) (VIN, HUD Data Plate Serial Number(s), etc.); manufacturer's name; model and year of manufacture; and length and width of unit. When foreclosure is initiated on a mortgage secured by a manufactured home, the servicer must provide the foreclosure attorney or trustee with information that the property type is manufactured housing; copies (or originals, if needed) of collateral documents; and a copy of the pre-referral inspection report (or all the information gathered therefor that relates to the property's status as a manufactured home). Any supplemental information required by FNMA and gathered later should also be provided to the attorney. These requirements are set forth in Part VIII, Chapter 1, Foreclosures, Exhibit 1 ( Loan Status Data for Foreclosure Proceedings ) and Exhibit 2 ( Expected Servicer/Attorney (or Trustee) Interaction ), and they apply whether the foreclosure attorney is retained by the servicer or by FNMA. A bankruptcy attorney retained with respect to a mortgage secured by a manufactured home must be provided with the same information outlined above as must be provided to a foreclosure attorney or trustee. Effective Dates Loans secured by manufactured homes, the applications for which are taken prior to this date, that comply with our existing eligibility, underwriting, appraisal, and title and lien requirements will be eligible for delivery until October 31, 2003 provided that the loan is appropriately identified at delivery as a mortgage secured by a manufactured home. Mortgage applications for loans secured by manufactured homes
taken on or after this date must be submitted to Desktop
Underwriter for underwriting. September 1, 2003 Mortgages secured by manufactured homes delivered as part of "Early Funding" transactions prior to this date will be assessed a 0.50 percent loan-level price adjustment if they are included in an MBS pool with an issue date on or after this date. October 31, 2003 Please see attached Safeguard alerts related to this issue. ACA - 03/04/2003 MH Mobile Homes Inspection and Condition Report Procedures |
