FHFA Proposes Nixing "Trailer Park" Loans

Fannie Mae and Freddie Mac may have a statutory duty to serve low-income and rural homebuyers, but their regulator does not want the two involved in financing mobile homes. The Federal Housing Finance Agency says most manufactured housing loans are essentially personal property notes and the GSEs have no experience in financing "chattel" loans. "Thus, FHFA proposes that chattel loans on manufactured homes not be considered toward the duty to serve the manufactured housing market as these loans are inconsistent with the enterprise conservatorship and would require substantial new efforts by the enterprises to ensure safe and sound operations and sustainable homeownership for families," FHFA says. However, the regulator is issuing a proposed rule that encourages Fannie and Freddie to finance manufactured housing loans secured by land. The GSEs can best serve low-income families by purchasing loans on "manufactured housing titled as real property," the regulator said. The proposed affordable housing rule is being issued for a 45-day comment period.