Tag Archive for: Manufactured Housing

HAC research explores the possibilities for improved mortgage finance on reservations

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Contact: Christina Davila, christinad@ruralhome.org, 202-842-8600
Dan Stern, dan@ruralhome.org, 202-842-8600

Washington, D.C., May 22, 2018- HAC’s recently released rural research report, Exploring the Challenges and Opportunities for Mortgage Finance in Indian Country, confirms mortgage lending activity is limited on many reservations and explores possible solutions to addressing the issues. The current lending conditions on many reservation lands include low origination rates, high denial rates, and involve a high proportion of loans for manufactured homes.

The report provides a sweeping picture of the mortgage market on reservations, where:

  • Fewer than 1,000 mortgage loans are made annually
  • Nearly half of mortgage loan applications are denied annually
  • Almost one-fifth of homes are manufactured homes
  • Two of the 20 largest-volume lenders are Native-owned institutions

Considering the findings in this report, HAC recommends that efforts to address the challenges of mortgage lending on reservations include improvements in education of lenders and borrowers, expanding the capacity of tribes, small lenders, and federal regulators, better targeted financial policies, and increased access to data.

“HAC is proud to present this report said David Lipsetz, HAC’s Executive Director. “This report improves our understanding of mortgage lending on tribal reservations and for Native American people, and we look forward to expanding our efforts to better serve organizations providing housing on tribal lands. HAC would like to thank the Wells Fargo Housing Foundation for their support of this research.”

“This report is a great resource for anyone working in housing on reservations,’ said Marvin Ginn, Executive Director of Native Community Finance based in Laguna, New Mexico. “It illustrates the challenges we face as housers for Native American populations, and provides recommendations that can help ease those challenges. This sort of research can help us better target our efforts and improve our work on reservations.”

HAC will present a more detailed analysis of the findings, and how they impact real-world practitioners in a webinar training on Wednesday, May 23, 2018 at 2 PM Eastern.

About the Housing Assistance Council
The Housing Assistance Council helps build homes and communities across rural America. Founded in 1971 and headquartered in Washington, D.C., HAC is a national nonprofit dedicated to helping local rural organizations build affordable homes by providing below-market financing, technical assistance, training, research, and information services. To learn more, visit www.ruralhome.org.
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FHFA Publishes Fannie Mae’s and Freddie Mac’s Duty to Serve Underserved Market Plans

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Updated: December 18, 2017

FHFA Publishes Fannie Mae’s and Freddie Mac’s Duty to Serve Underserved Market Plans

The Federal Housing Finance Agency (FHFA) has published Fannie Mae’s and Freddie Mac’s Underserved Markets Plans for 2018-2020 under the Duty to Serve program. The Plans become effective January 1, 2018.

Fannie Mae’s Underserved Markets Plan

Freddie Mac’s Underserved Markets Plan

HAC Comments on Duty to Serve Underserved Market Plans – July 10, 2017

The Housing Assistance Council (HAC) appreciates the opportunity to comment on Fannie Mae’s and Freddie Mac’s Duty to Serve Underserved Markets Plans for Rural Markets. As a strong advocate for the Duty to Serve provisions of the Housing and Economic Recovery Act of 2008, HAC appreciates the time, effort, and resources FHFA, Fannie Mae, and Freddie Mac have undertaken to develop these underserved market plans. The core of HAC’s work for over four decades has been rural and underserved communities. HAC understands the complexities and difficulties of working in these communities. HAC also understands the promise and possibility of Duty to Serve to affect real and measurable change in these long overlooked and largely forgotten communities and people. We appreciate that FHFA and the Enterprises have not forgotten them, and we look forward to assisting you and the Duty to Serve effort generally to achieve its mandate to improve liquidity and access to affordable housing in underserved markets.

Given its organizational focus on rural housing, HAC focused largely on the Rural Markets component of the plans. HAC presents comments on each Enterprise’s plan separately. After the Enterprise-specific comments, HAC presents general comments and suggestions to the Enterprises and FHFA on issues of rural multifamily housing and preservation.

Read HAC’s full comments.

Fannie Mae Rural Purchase Activity, 2013-2015

dts-fannie-mae

Freddie Mac Rural Purchase Activity, 2013-2015

dts-freddie-mac

The Federal Housing Finance Agency issued a final rule to implement the Duty to Serve provisions which require Fannie Mae and Freddie Mac to serve three specified underserved markets – manufactured housing, affordable housing preservation and rural housing – by improving the distribution and availability of mortgage financing in a safe and sound manner for residential properties that serve very low-, low- and moderate-income families.

Visit FHFA.gov/DTS for the press release, final rule, fact sheet, public listening session details, timeline and more.

HAC Will provide a summary of the Duty to Serve Rule soon.

Stakeholder Webinar

FHFA will provide a high-level overview of the final rule and answer stakeholder questions via webinar on Monday, Dec. 19 at 2 p.m. ET.

You may submit questions in advance by emailing DutyToServeStakeholders@FHFA.gov with “webinar question” in the subject line. Please submit your questions by COB Thursday, Dec. 15.

The Housing and Economic Recovery Act of 2008 mandates that Fannie Mae and Freddie Mac have a ‘Duty to Serve’ three traditionally underserved markets of:

  • Rural Housing
  • Manufactured Housing
  • Affordable Housing Preservation

The GSEs are tasked with increasing liquidity and investment capital in these markets.

The Federal Housing Finance Agency (FHFA) issued a Proposed Rule on Duty to Serve on December 15, 2015. Comments to the Rule were due on March 17, 2016.

Link to Proposed Rule sent to Federal Register

HAC Resources on Duty to Serve

HAC Comments on Proposed Duty to Serve Rule – March, 17 2016

HAC Comments on Proposed Duty to Serve Rule – July 22, 2010

HAC Comments on Duty to Serve Advanced Notice of Rule Making – September 18, 2009

HAC Webinar on Duty to Serve

The Housing Assistance Council (HAC) convened an interactive e-learning experience to assist housing providers and policymakers better understand the Duty to Serve Rule, and what it may mean for Rural America. The session was also intended to help inform comments to the Duty to Serve Rule.

Introduction | Power Point Presentation (22 MB) |Webinar Recording

Additional Resources on Duty to Serve

Interactive Map of Proposed Duty to Serve Rural Area

screen-capture-of-mapping-rural-america map

HAC’s Rural and Small Town Typology Database – Technical Documentation

Map of HAC’s Recommended Changes to FHFA Proposed Rural Area

DutyToServeMap FHFA HAC Recommended Changes

Map of GSE Loan Activity in Rural Areas

GSE Activity 2012 2014 Map

Map of FHFA Proposed Rural High-Need Areas and Persistent Poverty Counties

High Need Persistent Poverty Map

List of Suburban Tracts in FHFA Proposed Duty to Serve ‘Rural Areas’

List of Rural and Small Town Tracts Omitted From FHFA Proposed Duty to Serve ‘Rural Areas’

HAC News: August 20, 2014

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HAC News Formats. pdf

August 20, 2014
Vol. 43, No. 17

• USDA RD to revise guidance on domestic violence • Section 502 direct processing improvements scheduled • RD to delay implementing new rule for Section 502 guaranteed loans • HAC recommends notice to tenants about maturing USDA mortgages, asks for dialogue • Amendments proposed to reserve account rules for properties with 515 and 538 loans • Fair Market Rents for FY15 proposed • HUD to change environmental review form • Manufactured housing label fee increased • FHFA requests comments on its strategic plan • Study documents digital divide for tribal libraries • Permanent supportive housing found to reduce chronic homelessness • Conference on farmworker housing and health set for November • Please nominate national or local rural housing leaders for HAC awards!

August 20, 2014
Vol. 43, No. 17

USDA RD TO REVISE GUIDANCE ON DOMESTIC VIOLENCE. HAC and a number of other organizations signed on to a letter from the National Housing Law Project to USDA rural housing administrator Tony Hernandez requesting changes in AN 4747, which applies the Violence Against Women Act to USDA’s multifamily programs (see HAC News, 3/5/14). In a response dated August 6, Hernandez agreed to make most of the changes.

SECTION 502 DIRECT PROCESSING IMPROVEMENTS SCHEDULED. Administrator Tony Hernandez gave HAC a summary showing that in FY15 USDA will automate underwriting for Section 502 direct loans, revise its packaging regulations, allow packagers to submit applications electronically, and establish an imaging system for documents.

RD TO DELAY IMPLEMENTING NEW RULE FOR SECTION 502 GUARANTEED LOANS. An email sent to stakeholders on August 19 says a notice will be published in the Federal Register delaying the rule’s effectiveness to December 1, 2014 rather than September 1, the date originally scheduled. Contact USDA, 202-720-1452.

HAC RECOMMENDS NOTICE TO TENANTS ABOUT MATURING USDA MORTGAGES, ASKS FOR DIALOGUE. In an August 9 letter to Tony Hernandez, HAC expressed concern about tenants who will lose Section 521 Rental Assistance when USDA mortgages end. HAC urged USDA to ask owners to notify tenants well in advance of mortgage maturities, and suggested further discussions about ways to maintain the affordability of these units.

AMENDMENTS PROPOSED TO RESERVE ACCOUNT RULES FOR PROPERTIES WITH 515 AND 538 LOANS. USDA’s countersignature would no longer be required for rental projects that have both Section 538 guaranteed loans and Section 515 direct loans; the Section 538 regulations would apply. The change would also clarify that loan guarantee fees must be paid from operating accounts, not reserve accounts. Comments are due October 14. Contact Tammy S. Daniels, USDA, 202-702-0021.

FAIR MARKET RENTS FOR FY15 PROPOSED. Comments are due September 15 on the FMRs HUD will use in FY15. Contact local HUD program staff.

HUD TO CHANGE ENVIRONMENTAL REVIEW FORM. A final rule allows HUD to develop a single form to be used by HUD employees and other responsible entities. Contact Danielle Schopp, HUD, 202-402-4442.

MANUFACTURED HOUSING LABEL FEE INCREASED. The increase, proposed in May (see HAC News, 5/14/14), is effective September 12, 2014. Manufacturers will pay $100 for each new transportable section produced. Contact Pamela B. Danner, HUD, 202-708-6423.

FHFA REQUESTS COMMENTS ON ITS STRATEGIC PLAN. The Federal Housing Finance Agency’s plan “reflects the agency’s priorities as regulator of the Federal Home Loan Bank System and as regulator and conservator of Fannie Mae and Freddie Mac” and is the first under new director Mel Watt. Comments are due September 15.

STUDY DOCUMENTS DIGITAL DIVIDE FOR TRIBAL LIBRARIES. Digital Inclusion in Native Communities: The Role of Tribal Libraries, a report by the Association of Tribal Archives, Libraries, and Museums funded by the Institute of Museum and Library Services, provides the first comprehensive data on the subject. Research found that 89% of tribal libraries offer access to the internet and 86% have public computer workstations, compared to 100% of public libraries. At least 40% of tribal libraries studied do not have a broadband internet connection. Contact Susan Feller, ATALM, 405-401-8293.

PERMANENT SUPPORTIVE HOUSING FOUND TO REDUCE CHRONIC HOMELESSNESS. An examination of data at the community level confirms findings at the individual level: over time, increased investment in permanent supportive housing is associated with decreased rates of chronic homelessness. “The Relationship between Community Investment in Permanent Supportive Housing and Chronic Homelessness” was published in Social Service Review 88.2 (2014).

CONFERENCE ON FARMWORKER HOUSING AND HEALTH SET FOR NOVEMBER. “Farmworker Housing Quality and Health: A Transdisciplinary Conference” will be held on November 11 in Arlington, VA. Registration is $50 until October 1 and $70 after that date.

Please nominate national or local rural housing leaders for HAC awards! Nominations are due September 30 for the Cochran/Collings Award for national rural housing service and the Skip Jason Community Service Award. The honors will be presented at the National Rural Housing Conference in December. Complete the online nomina-tion form. Questions? Contact Lilla Sutton, HAC, 202-842-8600.

From Cargo Shipping to Home Sweet Home?

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Livable buildings can be created from shipping containers, the big rectangular corrugated metal things stacked at docks by giant cranes. There are large and impressive shipping container homes in numerous countries. Containers can be used for affordable housing too; for example, in Washington, DC an apartment building for students is being constructed from containers. And single containers can make affordable single-family homes. Kentucky Habitat for Humanity is constructing a prototype in Upton, a town of 680 an hour south of Louisville.

What does a container house look like? Most photos online show corrugated, painted exteriors. The interiors vary widely depending on the size of the container(s) used and how many containers are combined.

Read the complete blog post at Rooflines.

Making the Case for Long Term, Affordable Mortgage Financing for Manufactured Homes

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rrb_manufactured_hsg_thbOn March 21, 2013, CFED released Toward a Sustainable and Responsible Expansion of Affordable Mortgages for Manufactured Homes, which reported findings from an analysis of data on $1. 7 billion in manufactured home mortgage lending from a variety of lenders and investors who provide long-term home mortgage products to owners and buyers of manufactured homes. The report finds that manufactured home mortgage borrower repayment records are generally comparable to the site-built mortgage market. In some instances, the repayment records of manufactured home mortgage borrowers were better than comparable general mortgage portfolios…

Read the Complete Rural Research Brief

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