Freddie Tightens MH Guidelines

Freddie Mac has followed Fannie Mae in tightening its underwriting guidelines on manufactured housing loans by cutting off existing owners from refinancing into 30-year loans.Under Freddie's new seller/servicer guidelines, MH owners can only refinance into a 20-year loan with a loan-to-value ratio no higher than 65%. "We have grave concerns about the impact of that change by both Freddie and Fannie on existing manufactured housing markets and the ability of existing homeowners to tap their equity," said Michael O'Brien, executive vice president of the Manufactured Housing Institute. Freddie also capped the LTV on 30-year purchase loans at 95%, but did not go to a 90% cap like Fannie. "We are pleased -- on the biggest issue, Freddie did not follow Fannie," Mr. O'Brien said. Freddie Mac's new MH guidelines go into effect Jan. 2, along with a new 50-basis-point delivery fee on MH loans. Freddie Mac can be found online at http://www.freddiemac.com.