Fan­nie Mae Makes Mo­bile Home Loans Cheaper to Boost Af­ford­able Hous­ing

National Mortgage News - - Secondary - By Bonnie Sin­nock

Fan­nie Mae is low­er­ing down pay­ment re­quire­ments and lender fees on man­u­fac­tured hous­ing loans to im­prove af­ford­able hous­ing ac­cess.

Mort­gage lenders can im­me­di­ately start sub­mit­ting the new man­u­fac­tured hous­ing loan prod­uct to Fan­nie Mae. The new MH Ad­van­tage loans re­quire a 3% down pay­ment, down from 5% in Fan­nie’s ex­ist­ing man­u­fac­tured hous­ing loan of­fer­ings. In ad­di­tion, Fan­nie is not charg­ing the 50-ba­sis-point loan-level price ad­just­ment that typ­i­cally ap­plies to man­u­fac­tured hous­ing loans.

MH Ad­van­tage loans give lenders more lee­way to fund loans se­cured by man­u­fac­tured hous­ing that have higher loan-to-value ra­tios. To qual­ify for a MH Ad­van­tage loan, the man­u­fac­tured home must be “de­signed to meet spe­cific con­struc­tion, ar­chi­tec­tural de­sign and en­ergy ef­fi­ciency stan­dards,” Fan­nie said. The new of­fer­ing builds off of Fan­nie’s ex­ist­ing HomeReady pro­gram, which al­lows bor­row­ers to get a mort­gage with a 3% down pay­ment.

The loans can be de­liv­ered to Fan­nie’s au­to­mated un­der­writ­ing sys­tem and sub­mit­ted as whole loans or in se­cu­ri­ti­za­tions. The loans can be sold into mort­gage-backed se­cu­ri­ties with pool is­sue dates af­ter May 1.

MH Ad­van­tage bor­row­ers can also ob­tain a sec­ond-lien loan un­der Fan­nie Mae’s Com­mu­nity Sec­onds pro­gram, which al­lows for a 105% com­bined loan-to-value ra­tio.

Both Fan­nie and its main com­peti­tor, Fred­die Mac, are ex­pand­ing sup­port for man­u­fac­tured hous­ing, af­ford­able hous­ing preser­va­tion and ru­ral hous­ing un­der Duty to Serve, a di­rec­tive is­sued by their reg­u­la­tor and con­ser­va­tor, the Fed­eral Hous­ing Fi­nance Agency.

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