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Regulatory News

Manufactured housing Q&A with HUD’s Teresa Payne

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Regulatory News
Thursday, December 15, 2022

In a follow-up to October Research’s “Manufactured Housing Supply and Financing – featuring HUD and FHA” webinar, Teresa Payne, administrator for the U.S. Department of Housing and Urban Development’s (HUD) Office of Manufactured Housing Programs (OMHP), answered audience questions related to this type of affordable housing.

Q: What is the difference between a manufactured home and a modular?  

Payne: Manufactured homes are built to a nationwide federally preemptive building code, the Manufactured Home Construction and Safety Standards (MHCSS).  Manufactured homes are subject to a regulatory oversight system that is administered by HUD. There is a certification label attached to each section of a manufactured home.  

Modular homes are designed and built to meet building codes established and enforced by state and/or local government.   

Q: What is the median price of the 93K manufactured homes built in FY20 and what is the range, low to high?  

Payne: OMHP does not maintain data with respect to pricing.  However, publicly available data is available from the U.S. Census Bureau. This data includes average pricing data on a national and regional basis.  The data can be found here. 

Q: Are these homes with the “label” distinctly different from “mobile homes” with VIN and titles for each side?  

Payne: The Department of Housing and Urban Development (HUD) requires a manufacturer place a large information sticker, called a “data plate,” on the interior of every mobile home manufactured since June 15, 1976. There are 3 types of ‘homes’: (1) Manufactured Homes; (2) Modular Homes; (3) Travel Trailers.

With respect to travel trailers, these are considered recreational vehicles (RVs) and are built to industry consensus standards developed by either the National Fire Protection Association or the American National Standards Institute. 

Manufactured homes are labeled at the end of production. The application of the label signifies the home manufacturer self-certifies the home complies with federal standards. Each transportable section (i.e. floor) of a manufactured home receives the HUD-required certification label. 

Mobile homes are typically those homes built prior to the implementation of the federal program (prior to June 15, 1976).  Generally, mobile homes were built to either voluntary standards or to requirements established at the state level. 

Q: When I talk with owners of mobile home parks, I’m nearly always told municipalities are the biggest impediment to adding more homes and parks. How can HUD/Federal Housing Administration help overcome this reticence? 

Payne: While HUD does not have regulatory oversight authority regarding mobile home parks, HUD is working through its research and working groups to identify and address regulatory barriers to affordable housing, including manufactured housing.  In addition, HUD has worked with disparate local governments in addressing discriminatory and exclusionary zoning practices.

Q: We are seeing an increase in problems with homes. Based upon the continued increase in homes being built, is quality being addressed? We have had an increase in disputes between borrowers, dealers, and the manufacturers. This is putting the lender in the middle. Have there been adjustments to inspections, etc., based on increases and these types of issues?

Payne: HUD’s monitoring has not found any significant increase in failures to conform to HUD standards.  However, HUD does acknowledge variability in quality both between manufacturers and due to human design and production factors.  There are also differences in standards-related issues that have regulatory redress and non-standards related issues, such as contractual matters and cosmetic issues, that do not have regulatory redress through HUD’s regulatory scheme.  HUD encourages any informed party to provide all consumer-related complaints to the home manufacturer for redress.

Q: How are tribal nations engaged?

Payne: Manufacturers of manufactured homes are regulated by HUD and as such are expected to comply with HUD’s regulations regardless of the status or location of the end purchaser. Due to various limitations that may exist if a consumer is on tribal lands, HUD may not be able to ensure compliance of corrective actions.   However, HUD has cooperated with tribal entities on an ad hoc basis and would continue to cooperate as circumstances dictate and as needs arise.

Q: What are your standards around climate resilience?  

Payne: The current manufactured housing construction and safety standards address various aspects of climate resilience, including resistance to wind and other structural loads as well as thermal performance, among other things.  Further, specific local considerations may be necessary considerations for the installation and setup of a manufactured home on any given home site. 

Standards for design and construction and the minimum installation standards may be found here. The current proposed rule also includes, among other things, proposing a requirement for a water resistive barrier. 

Q: Are there solar options? 

Payne: Manufacturers are able to install solar options in their manufacturing facilities. 

Q. Why 1-3 units and not the conventional 1-4 multi-dwelling units? 

Payne: The proposed rule that would allow for multi-unit single family dwellings includes a limit of up to 3 dwelling units. This is the maximum recommended by the Manufactured Home Consensus Committee as was based on a similar provision in effect for the state of Ohio.  

Q: Any thought to lower counters in the Americans with Disabilities Act (ADA) reference updates?  

Payne: Accessibility options are available for purchasers who wish to have greater ADA access throughout a home.

Q: Are these homes eligible for title insurance? 

Payne: Yes, manufactured homes are eligible for title insurance, subject to state and local requirements.

Want to hear more on manufactured housing? Access the complimentary webinar here.

Today's other top stories
Freedom Mortgage kicks off Rucksacks to Backpacks fundraising campaign
HUD announces new leadership appointments
Class action suit filed against HUD over withheld FHIP funds
FHA releases policy retractions for single family-mortgage insurance
House amends, passes ‘trigger lead’ legislation


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12 USC Section 2605 or Section 6 is titled Servicing of mortgage loans and administration of escrow accounts. It pertains to qualified written requests, notices of transfer of servicing and the administration of escrow accounts.
An arrangement that involves a person who is in a position to refer business as part of a real estate settlement service and who has an interest in a settlement services provider.

In the arrangement, the person, who has either an affiliate relationship with or a direct or beneficial ownership interest of more than one percent in a settlement services provider, directly or indirectly refers business to that provider or influences a consumer to select that provider.
An arrangement that involves a person who is in a position to refer business as part of a real estate settlement service and who has an interest in a settlement services provider.

In the arrangement, the person, who has either an affiliate relationship with or a direct or beneficial ownership interest of more than one percent in a settlement services provider, directly or indirectly refers business to that provider or influences a consumer to select that provider.
A mortgage disclosure that lists all estimated charges and fees associated with your loan. In addition to fees and charges, it will list your loan amount, mortgage rate, loan term and estimated monthly payment. Your escrows due at closing for insurance and taxes will also be outlined. Mortgage lenders are legally required to provide a GFE within three days of receiving your application.
A mortgage disclosure that lists all estimated charges and fees associated with your loan. In addition to fees and charges, it will list your loan amount, mortgage rate, loan term and estimated monthly payment. Your escrows due at closing for insurance and taxes will also be outlined. Mortgage lenders are legally required to provide a GFE within three days of receiving your application.
Under RESPA Section 2605(e)(1)(B), a qualified written request is a written correspondence that includes: 1) the name and account of the borrower, or has enough information to allow the servicer identify that information; and 2) a statement of the reasons for the belief of the borrower that the account is in error or provides sufficient detail to the servicer regarding other information sought by the borrower.

A QWR cannot be written on a payment coupon or other payment medium supplied by the servicer.
Under RESPA Section 2605(e)(1)(B), a qualified written request is a written correspondence that includes: 1) the name and account of the borrower, or has enough information to allow the servicer identify that information; and 2) a statement of the reasons for the belief of the borrower that the account is in error or provides sufficient detail to the servicer regarding other information sought by the borrower.

A QWR cannot be written on a payment coupon or other payment medium supplied by the servicer.
12 USC Section 2609 or Section 10 is titled Limitation on requirement of advance deposits in escrow accounts. It governs escrow accounts including notifications and statements to borrowers. Section 10 also sets out penalties for those who violate the section.
RESPA Section 3 provides that a thing of value includes any payment, advance, funds, loan, service or other consideration

Regulation X says thing of value includes: monies, things, discounts, salaries, commissions, fees, duplicate payments of a charge, stock, dividends, distributions of partnership profits, franchise royalties, credits representing monies that may be paid at a future date, the opportunity to participate in a money-making program, retained or increased earnings, increased equity in a parent or subsidiary entity, special bank deposits or accounts, special or unusual banking terms, services of all types at special or free rates, sales or rentals at special prices or rates, lease or rental payments based in whole or in part on the amount of business referred, trips and payment of another person’s expenses or reduction in credit against an existing obligation.
A form used by a settlement or closing agent itemizing all charges imposed on a borrower and seller in a real estate transaction. This form represents the closing transaction and provides each party with a complete list of incoming and outgoing funds. RESPA requires the HUD-1 to be used as the standard real estate settlement form in all transactions in the U.S. involving federally related mortgage loans.
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