An industry group has called certain laws that are currently in place a burden to prospective homeowners who are trying to purchase manufactured homes, HousingWire reports.
The Manufactured Housing Association for Regulatory Reform claims that laws created under the Manufactured Housing Improvement Act of 2000 have failed to be properly implemented which has resulted in these homes retaining their status as trailers rather than legitimate homes.
Subsequently, MHARR chairman John Bostick says that the failure of financial regulators to further legitimize manufactured homes in the mortgage industry has resulted in government-sponsored enterprises calling for higher loan securitization requirements on these homes when compared to other properties backed by FHA-insured loans.
"Specifically, FHA Title I manufactured housing lenders must have minimum net worth of at least $10 million - as compared with $2.5 million for site-built lenders - plus 10 percent of the dollar amount of all outstanding manufactured housing mortgage-backed securities," Bostick told the House Financial Services Committee, according to HousingWire.
The association further accuses Fannie Mae and Freddie Mac of discriminating against buyers of manufactured loans after being instructed under the reform law to create loans that will fit better with the specific housing sector.