Toward a Sustainable and Responsible Expansion of Affordable Mortgages for Manufactured Homes
Author(s): Howard Banker, Robin LeBaron
Date Published: March 2013
File Type: PDF
Published by CFED
A new study, Toward a Sustainable and Responsible Expansion of Affordable Mortgages for Manufactured Homes, reports findings from analyzing actual loan performance data —accounting for more than $1.7 billion in manufactured home mortgages – from a number of state Housing Finance Agencies, credit unions and other sources.
Surprising findings from the report include:
- Mortgage performance for manufactured homes is comparable to that of similar site-built homes
- Some manufactured home lending portfolios actually outperform mortgages for comparable site-built homes
- Mortgages for manufactured homes can be made with low downpayments and alternative credit (not necessarily top-tier FICO scores) and still perform well
Data were compiled by a two-year effort of the I’M HOME Loan Data Collection Project, part of Innovations in Manufactured Homes (I’M HOME), a national initiative managed by CFED which weeks to ensure that owners of manufactured homes have the opportunity to build wealth through homeownership. The Data Project and the Uniform Manufactured Housing Act effort beginning in many states are among efforts to expand affordable mortgages – as an alternative to higher-cost chattel loans – for manufactured homes.
The report’s authors, Howard Banker and Robin LeBaron of Fair Mortgage Collaborative, lay out the report’s methodology and findings in detail. The report also contains a detailed list of recommendations for systemic improvements that will make low-cost, high-performing mortgages more available to owners and buyers of manufactured homes. Lenders, investors, GSEs, Housing Finance Agencies, federal agencies, housing and finance organizations will find the report essential reading.
To browse the entire report, please click the version below.