The release of a new FHA Title I Mortgagee Letter, designed to complete the implementation of the Title I program improvements approved by Congress in the Housing and Economic Recovery Act of 2008 (HERA), was announced by Federal Housing Commissioner David Stevens at the June 2,2010 manufactured housing industry finance summit meeting. The Mortgagee Letter, to be issued on June 2, 2010, will, according to HUD, pave the way for the development of guidelines by GNMA for the securitization of manufactured housing obligations and the qualification of finance institutions to provide FHA-insured Title I loans. &, Below).
The June 2,2010 Mortgagee Letter clarifies and amends portions of a prior Title 1 Mortgagee Letter issued by FHA on April 14,2009. That document began the process for implementing the Title I HERA reforms authorized by Congress, including higher transaction limits, but did not address all of the issues raised by that legislation, which effectively allowed GNMA to continue its moratorium on the securitization of manufactured housing obligations and the qualification of new Title I lenders.
While information from FHA in late 2009 indicated that GNMA would require time-consuming follow-up rulemaking by FHA on the remaining HERA-based issues as a pre-condition to action that would ultimately lift the GNMA manufactured housing moratorium, it now appears, from comments at the finance summit meeting by HUD, FHA and GNMA officials, that GNMA is willing to set new Title I guidelines and begin the process for the qualification of lenders, based upon the two FHA Title I Mortgagee Letters.
Needless to say, industry participants at the Elkhart, Indiana finance summit meeting made it clear to both FHA and GNMA that the restoration and revitalization of FHA Title I financing is critical to the industry and its consumers, and needs to be an immediate priority for full and immediate implementation.
MHARR is a Washington D.C.-based national trade association representing the views and interests of producers of federally-regulated manufactured housing.
PRESENTATION OF THE MANUFACTURED HOUSING ASSOCIATION FOR REGULATORY REFORM
THE MANUFACTURED HOUSING ROUNDTABLE
MANUFACTURED HOUSING PUBLIC AND PRIVATE CONSUMER FINANCING
The Manufactured Housing Association for Regulatory Reform
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