mobile home and mobile home lot loans

mobile home and mobile home lot loans Sec. 107. (a) Subsections (a) and (b) of section 1819 are amended to read as follows: “(a)(1) Notwithstanding any other provision of this chapter, any loan to a veteran eligible for the benefits of this chapter, if made pursuant to the provisions of this section, may be guaranteed if such loan is for one of the following purposes: “(A) To purchase a lot on which to place a mobile home already owned by the veteran. “(B) To purchase a single-wide mobile home. “(C) To purchase a single-wide mobile home and a lot on which to place such home. “(D) To purchase a double-wide mobile home. “(E) To purchase a double-wide mobile home and a lot on which to place such home. “(2) A loan for any of the purposes described in paragraph (1) of this subsection may include an amount determined by the Administrator to be appropriate to cover the cost, of necessary preparation of a lot already owned or to be acquired by the veteran, including the costs of installing utility connections and sanitary facilities, of paving, and of constructing a suitable pad for the mobile home. “(3) Any loan made for the purposes described in clause (C) or (E) of paragraph (1) of this subsection shall be considered as part of one loan. The transaction may be evidenced by a single loan instrument or by separate loan instruments for (A) that portion of the loan which finances the purchase of the mobile home, and (B) that portion of the loan which finances the purchase of the lot and the necessary preparation of such lot. “(b)(1) Use of entitlement under this section for the purchase of a mobile home unit shall preclude the use of remaining entitlement for the purchase of an additional mobile home unit until the unit which secured the loan has been disposed of by the veteran or has been destroyed by fire or other natural hazard. “(2) The Administrator shall restore entitlement to all loan guaranty benefits under this chapter for the veteran when the conditions prescribed in section 1802(b) of this title have been met.”. (b)(1) Paragraph (1) of subsection (c) of such section is amended to read as follows: “(1) Loans for any of the purposes authorized by subsection (a) of this section shall be submitted to the Administrator for approval prior to the closing of the loan, except that the Administrator may exempt any lender of a class listed in section 1802(d) of this title from compliance with such prior approval requirement if the Administrator determines that the experience of such lender or class of lenders in mobile home financing warrants such exemption.”. (2) Paragraph (3) of such subsection is amended by striking out the first sentence and inserting in lieu thereof the following new sentences: “The Administrator’s guaranty may not exceed the lesser of 50 per centum of the loan amount or the maximum loan guaranty entitlement available, not to exceed $17,500. Payment of a claim under 92 STAT. 1501such guaranty shall be made only after liquidation of the security for the loan and the filing of an accounting with the Administrator.”. (3) Such subsection is further amended by adding at the end thereof the following new paragraph: “(4) The amount of guaranty entitlement available to a veteran under this section shall not be more than $17,500, less the amount of any such entitlement as may have been used under this section. Use of entitlement under section 1810 or 1811 of this title shall reduce entitlement available for use under this section to the same extent that entitlement available under such section 1810 is reduced below $17,500.” (c) Subsection (d) of such section is amended to read as follows: “(d)(1) The maturity of any loan guaranteed under this section shall not be more than— “(A) fifteen years and thirty-two days, in the case of a loan for the purchase of— “(i) a lot; “(ii) a single-wide mobile home; or “(iii) a single-wide mobile home and a lot; or “(B) twenty years and thirty-two days, in the case of a loan for the purchase of— “(i) a double-wide mobile home; or “(ii) a double-wide mobile home and a lot. “(2) Nothing in paragraph (1) of this subsection shall preclude the Administrator, under regulations which the Administrator shall prescribe, from consenting to necessary advances for the protection of the security or the holders lien, to a reasonable extension of the term of such loan, or to a reasonable reamortization of such loan.”. (d) Clause (4) of subsection (e) of such section is amended to read as follows: “(4) the amount of the loan to be paid by the veteran is not in excess of the amount determined to be reasonable, based upon— “(A) with respect to any portion of the loan to purchase a new mobile home, such cost factors as the Administrator considers proper to take into account; “(B) with respect to any portion of the loan to purchase a used mobile home, the reasonable value of the property, as determined by the Administrator; “(C) with respect to any portion of the loan to purchase a lot, the reasonable value or such lot, as determined by the Administrator; and “(D) with respect to any portion of the loan to cover the cost of necessary site preparation, an appropriate amount, as determined by the Administrator;”. (e) Such section is further amended by striking out subsection (g) and by redesignating subsections (h), (i), (j), (k), (l), (m), and (n) as subsections (g), (h), (i), (j), (k), (l), and (m), respectively. (f) Subsection (h) of such section (as redesignated by subsection (e) of this section) is amended (1) by inserting “(1)” before “No loan”, (2) by striking out the third sentence of such subsection, and (3) by addin" at the end thereof the following new paragraph: “(2)(A) For the purpose of assuring compliance with the standards prescribed under paragraph (1) of this subsection, the Administrator shall from time to time inspect the manufacturing process of manufacturers of mobile homes sold to veterans utilizing assistance under this chapter. For the purpose stated in the preceding sentence and for 92 STAT. 1502the additional purpose of monitoring safety factors involved in the installation of mobile homes purchased through the utilization of assistance under this chapter, the Administrator shall from time to time conduct random onsite inspections of mobile homes purchased through the utilization of such assistance. “(B) The Administrator may, with the agreement of the Secretary of Housing and Urban Development, delegate to the Secretary of Housing and Urban Development the duty of the Administrator under subparagraph (A) of this paragraph to inspect the manufacturing process of manufacturers of mobile homes, but any such delegation shall be subject to an agreement that the Secretary of Housing and Urban Development, upon the request of the Administrator, shall promptly provide the Administrator with the complete results of any inspection made by the Secretary pursuant to such delegation. The Administrator shall have the right to withdraw any delegation under the preceding sentence at any time and in whole or in part.”. (g)(1) Subsections (i), (j), and (l) of such section (as redesignated by subsection (e) of this section) are amended by striking out “subsection (i)” each place it appears and inserting in lieu thereof “subsection (h)”. (2) Subsection (1) of such section (as redesignated by subsection (e) of this section) is amended by striking out “subsection (j)” and inserting in lieu thereof “subsection (i)”.