Manufactured Home Loans

PURPOSE: This rule prescribes the limitations and conditions on which an association may make loans or purchase commercial paper for the purpose of manufactured home financing. (1) Inventory Financing. An association may invest in manufactured home chattel paper which finances a manufactured home dealer’s acquisition of inventory provided the— (A) Inventory is held for sale by the dealer in its ordinary course of business; (B) Loan evidenced by the chattel paper is the dealer’s obligation; and (C) Loan amount does not exceed the following: 1. New manufactured homes—One hundred percent (100%) of manufacturer’s invoice price for each manufactured home and equipment to be installed by the dealer; and 2. Used manufactured homes—Seventyfive percent (75%) of appraised market value or other generally accepted valuation of each manufactured home, including installed equipment. (2) Retail Financing. (A) Insured and Guaranteed Loans. An association may invest in retail manufactured home chattel paper that is insured or guaranteed or that has a commitment for insurance or guarantee. (B) Conventional Loans. An association may invest in conventional retail manufactured home chattel paper provided the— 1. Manufactured home is located at a manufactured home park or other permanent or semipermanent site; 2. Manufactured home chattel paper is payable within twenty (20) years, in monthly payments which are substantially equal except to the extent that the financing complies with other mortgage provisions authorized by this chapter; and 3. Finance amount (excluding time-price differential or interest, however computed) does not exceed— A. New manufactured homes—Ninety percent (90%) of the buyer’s total cost, including freight, itemized set-up charges, sales or other taxes, filing and recording fees imposed by law and premiums for related insurance; and B. Used manufactured homes— Ninety percent (90%) of appraised market value or other generally accepted valuation of the manufactured home, plus sales and other taxes, filing and recording fees imposed by law, premiums for related insurance and freight and itemized set-up charges, if any. (C) Combination Loans. An association may invest in manufactured home chattel paper secured by combinations of manufactured homes and lots on the following terms and conditions: 1. Affixed manufactured homes—If the wheels and axles have been removed and the manufactured home is permanently affixed to a foundation, a loan secured by a combination of manufactured home and lot on which it sits may be treated as a home or residential real estate loan under this chapter; and 2. Unaffixed manufactured homes—If the manufactured home is not affixed in the manner described in paragraph (2)(C)1. of this rule, an association may make a loan secured by a combination of manufactured home and lot on which it is or is to be located if the financing complies with the requirements of paragraphs (2)(B)1.–3. (Conventional Loans) and the loan-to-value ratio does not exceed seventy-five percent (75%) of the appraised value of the lot and lot improvements and ninety percent (90%) of the buyer’s total costs of the manufactured home (or valuation of used manufactured home) as defined in paragraph (2)(B)3. of this rule. (D) Sale of Paper. All manufactured home chattel paper sold by an association shall be sold without recourse. Further, no association may sell manufactured home chattel paper if at the close of its most recent semiannual period, it has manufactured home chattel paper scheduled items (other than assets acquired in a supervisory merger) in excess of five percent (5%) of its total portfolio in the paper, provided that application may be made to the director for a waiver of this restriction. AUTHORITY: sections 369.229, 369.249, 369.254 and 369.299, RSMo 1994.* This rule originally filed as 4 CSR 260-8.065. This rule previously filed as 4 CSR 14020.065. Original rule filed Nov. 4, 1986, effective Jan. 30, 1987. Changed to 4 CSR 140-20.065, effective July 6, 1994. Moved to 20 CSR 1140-20.065, effective Aug. 28, 2006. *Original authority: 369.229, RSMo 1971, amended 1983, 1994; and 369.249, 369.254 and 369.299, RSMo 1971, amended 1994.