Reposted from 1.8.19 Fitch article:
“MH makes up a meaningful part of residential housing in the U.S., and accounted for approximately 10% of new homes in 2018. Loan originations differ in underwriting standards for chattel (home only), land-home, FHA, and community chattel financing. While this product can be challenging to originate and service the market has begun to focus on opportunities in this sector. Both Fannie Mae and Freddie Mac have recently introduced MH products and programs.
The servicing of manufactured homes can differ from typical site-built homes in that chattel loans are treated as personal property. Chattel loans are not restricted by the typical longer legal actions of a traditional residential mortgage.
The servicer rating positions Cascade for potential involvement in rated RMBS. Fitch last rated a new issuance of MH in 2008…”