Freddie Mac and Fannie Mae announced yesterday a new initiative to help buyers of mobile and manufactured homes by providing financing to this underserved market.
Fannie and Freddie already offer mortgages for manufactured homes on owned land that are on permanent foundations. This new program is designed to assist borrowers who wish to purchase a manufactured home on land that is not permanently attached to the foundation and is considered a chattel loan (personal loan).
These types of loans have been hard to come by ever since the mobile home loan market crashed in the 1990’s sending several lenders into bankruptcy.
Fannie Mae said in an announcement that the plan aims to address the needs of America’s most underserved housing markets and will focus on three key underserved areas: manufactured housing, affordable housing preservation, and rural housing.
Executive Vice President and Head of Multifamily, Fannie Mae, Jeffery Hayward had said this about the new program;
“Fannie Mae welcomes the opportunity to create housing opportunities that are affordable and we are prepared to bring all our experience, knowledge, and capabilities to bear in fulfilling our Duty to Serve. We recognize that there are no easy solutions to the tough and often long-standing challenges that characterize underserved markets. It will take research, education, and innovative partnerships to make housing more affordable in all markets. We are excited that the Duty to Serve rule aligns with our mission to increase access to mortgage credit and housing options for all Americans as we find new ways and new partners to support underserved markets that need help.”
Danny Gardner, Freddie Mac’s vice president of affordable lending and access to credit said;
“Duty to Serve presents a welcome opportunity to lead the mortgage industry and help more American families with their housing needs. Our plan includes increased loan purchases in these underserved markets, new offerings, market research, increased homebuyer education, community engagement and local outreach. We intend to work with our customers and the many dedicated organizations that are deeply knowledgeable about these markets at the local, regional and national levels.”
“We are deeply committed to improving access to quality affordable housing. Public comments — combined with our extensive research and data collection strategies — will help shape our future activities,” said David D. Leopold, vice president of multifamily affordable housing products. “We believe that, over time, we can address the needs of these communities in sustainable ways that will benefit our country for generations to come.”
Public input on the proposed Plan can be provided through July 10, 2017 on FHFA’s DTS Draft Underserved Markets Plans Input page. – See more at: http://www.fanniemae.com/portal/media/corporate-news/2017/duty-to-serve-plan-6552.html#sthash.YFngKml5.dpuf
Interested parties are encouraged to review the proposed plan and submit comments to the Federal Housing Finance Agency (FHFA) via its web site.
If FHFA issues a non-objection to the plan by Dec. 1, 2017, it will go into effect on Jan. 1, 2018.