“Despite news reports that Fannie Mae and Freddie Mac will start pilot programs for chattel manufactured home loans, don’t look for a big move by them any time soon in this arena,” said the CU Insight yesterday.
The CU Insight’s about us page says, “…is the place for all things credit union. We are the leading digital source connecting the credit union community to news, opinion, press…” – in short, its their communication platform with media, credit unions and their members.
“That slowness [by the GSEs] is unfortunate because manufactured homes could be a key component to solving the problem of affordable housing in this country,” said the credit union group’s publication. “Creating a secondary market for these loans would make it possible for more lenders to provide them. And a large number of people could potentially benefit. The GSEs re-entering the space, also gives the this loan type more credibility as a secondary market investment product.”
In short, the credit unions are politely sounding frustrated with the GSEs, and by extension, the FHFA.
This column by Chuck Smith with CU Management, specifically mentions Credit Human, previously known as San Antonio Credit Union,, which is perhaps the largest credit union serving the manufactured housing industry, although there are many others, including the one shown in the interview below.
Another Fact Error?
“According to the latest figures published by the U.S. Census Bureau, 18 million Americans live in a manufactured home.” The more common figure is 22 million, see the below.
“Sales had been in a steady decline from the highs of around 370,000 in 1998,” said Smith. “The lowest years on record with the U.S. Department of Housing and Urban Development were 2009-2010 with around 50,000 annual sales. There were approximately 93,000 units sold in 2017. Approximately 80 percent of new manufactured homes sold are titled as “chattel,” which means an item of property other than real estate. About 35 percent of those are placed in manufactured home communities and 65 percent are placed on privately owned land. The average sales price in December 2017 was $53,400 for a single-wide unit and $92,800 for a multi-sectional.” Most of that is close, but once more, see the linked report above for the latest fact-checked data.
Smith’s next line is polite, but still wags a finger at the GSEs again.
“The two government-sponsored enterprises are mandated by the Federal Housing Enterprises Financial Safety and Soundness Act of 1992, as amended by the Housing and Economic Recovery Act of 2008, to provide mortgage financing for residential properties that serve low- to moderate-income families. This is a market that some credit unions and CUSOs are very familiar and have been serving since their inception. $2.9 billion Credit Human Federal Credit Union, San Antonio, is one of the top chattel lenders in the country.”
Some of the above might have been written by Mark Weiss at MHARR, or MHProNews, or the growing array of voices that believe that the DTS process was hijacked and sidelined. See the related reports, linked below. To join our robust, industry-leading emailed headline news, click the link below. “We Provide, You Decide.” © ## (News, analysis, and commentary.)
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