Do I have this correct?

For loan applications received on or after July 18, 2015:
(1) loans secured by a new manufactured home and land will be exempt from the HPML requirement that the appraisal include a physical inspection of the property interior;
(2) loans secured by an existing (used) manufactured home and land will be fully subject to HPML appraisal requirements; and
(3) loans secured only by a new or existing manufactured home only (no land) will be fully exempt from the HPML appraisal requirements if the creditor gives the consumer one of three types of information about the home’s value. The three types of information are:
• for a transaction secured by a new manufactured home, the manufacturer’s invoice for the home;
• (ii) a cost estimate of the value of the manufactured home from an independent cost service provider; or
• (iii) a valuation conducted by an individual who has no financial interest in the property or credit transaction, and has training in valuing manufactured homes.

That's accurate, except that for the first bullet under (3). For that bullet item, the application for credit has to be received no later than 18 months after the date of manufacture for the home.

The reference for these changes is 1026.35(c)(2)(viii), as effective on 7/18/15. For applications received before that date, the current version of the exception, which covers transactions secured in whole or in part by any manufactured home, applies.

Doesn't the mobile home hpml appraisal exemption in 1026.35(c)(2)(iii) remain in place after 7/18/2015? If so, what is the definition of the term mobile home?

I need to distinguish the difference due to the changes to (c)(2)(viii)regarding a manufactured home.

Yes. There is no change to .35(c)(2)(iii), which exempts loans secured by mobile homes, boats or trailers. But you need to be careful about your definition of "mobile home." It excludes anything that fits the definition of "manufactured home," found in .35(c)(1)(iii), which refers out to 24 CFR 3280.2:

Manufactured home means a structure, transportable in one or more sections, which in the traveling mode is 8 body feet or more in width or 40 body feet or more in length or which when erected on-site is 320 or more square feet, and which is built on a permanent chassis and designed to be used as a dwelling with or without a permanent foundation when connected to the required utilities, and includes the plumbing, heating, air-conditioning, and electrical systems contained in the structure. This term includes all structures that meet the above requirements except the size requirements and with respect to which the manufacturer voluntarily files a certification pursuant to §3282.13 of this chapter and complies with the construction and safety standards set forth in this part 3280. The term does not include any self-propelled recreational vehicle. Calculations used to determine the number of square feet in a structure will include the total of square feet for each transportable section comprising the completed structure and will be based on the structure's exterior dimensions measured at the largest horizontal projections when erected on site. These dimensions will include all expandable rooms, cabinets, and other projections containing interior space, but do not include bay windows. Nothing in this definition should be interpreted to mean that a manufactured home necessarily meets the requirements of HUD's Minimum Property Standards (HUD Handbook 4900.1) or that it is automatically eligible for financing under 12 U.S.C. 1709(b).

Incidentally, comment 35(c)(2)(iii)-1 indicates the definition of manufactured home is found at 1026.35(c)(1)(ii), which is incorrect. Should be 1026.35(c)(1)(iii). I've added an editor's correction in Read A Reg on that page, and have sent the Bureau a note about the error.

When I researched the difference between a mobile and a manufactured home a few years ago I found that the main difference was the date they were produced. If it was made before 6/15/76 it is a mobile home. Production on or after that date makes it a manufactured home.

Unfortunately now I can't find my path to that research. Has anyone else found the same information?

John has provided you the specific definition as it applies to this rule. Date of production has nothing to do with it.

That is the difference technically but that definition is not used in this rule.

After exploring the definition John posted I'm more confused than ever.

Is there a difference between a mobile home and a manufactured home if we can't use the date?

What's the bright line to even determine if something is a manufactured home? The definition starts out with the size requirement of 320 sq. ft. But, if I'm understanding 3282.13 referenced in the definition manufactures can do certain things to get smaller units certified as manufactured.

I'm hoping for an easy way to explain when an appraisal may be required. Somehow I have to differentiate between mobile and manufactured homes.

You would use the definition in this regulation when dealing with this regulation.

"Manufactured home means a structure, transportable in one or more sections, which in the traveling mode is 8 body feet or more in width or 40 body feet or more in length or which when erected on-site is 320 or more square feet, and which is built on a permanent chassis and designed to be used as a dwelling with or without a permanent foundation when connected to the required utilities, and includes the plumbing, heating, air-conditioning, and electrical systems contained in the structure. This term includes all structures that meet the above requirements except the size requirements and with respect to which the manufacturer voluntarily files a certification pursuant to §3282.13 of this chapter and complies with the construction and safety standards set forth in this part 3280. The term does not include any self-propelled recreational vehicle. Calculations used to determine the number of square feet in a structure will include the total of square feet for each transportable section comprising the completed structure and will be based on the structure's exterior dimensions measured at the largest horizontal projections when erected on site. These dimensions will include all expandable rooms, cabinets, and other projections containing interior space, but do not include bay windows. Nothing in this definition should be interpreted to mean that a manufactured home necessarily meets the requirements of HUD's Minimum Property Standards (HUD Handbook 4900.1) or that it is automatically eligible for financing under 12 U.S.C. 1709(b)."

If it is not large enough to meet the width, length or square footage standard in this regulation, it is a mobile home for this regulation. A self propelled (think RV) vehicle will also not qualify. The size standards would eliminate some very small older or "park" model homes.

We don't even worry about the exemption. We do so few loans secured by manu/mobile homes, that we just apply the rules to those situations. Simpler than having to determine if the exemption applies or not.

Anybody want to venture a guess as to whether or not NADA values will count under this one?

After reading the commentary to that paragraph, I think NADA values would cover the requirement. If you adjust any of the values, make sure you use adjustment factors provided by the NADA guide, though (see comment 2 to the paragraph).

Thank you!

Here's a pickle:

Application for purchase of a used mobile home and land to be used as a primary residence. The problem is, the used mobile home being purchased will not be moved until after the loan closes, so there's no way to do an interior inspection for the appraisal. How in the world are we supposed to satisfy the HPML appraisal requirements in a situation like this?

Won't the person selling the mobile home allow the appraiser inside?

That's my question...why can't it...and if they can't...why are you taking the title?

(if they are moving the home, seems it wouldn't be a true part of the sale and if it can be moved, I'm assuming it's not de-titled)

Borrower is buying lot A from seller A. Borrower is also buying MH B from Seller B (unrelated to Seller A) which will be moved to Lot A after closing. The MH is currently being taken apart and readied for relocation, but is still on the property of Seller B, somewhere in the wilds across the state border.


I talked to the LO and he thinks he can talk the appraiser into going to Seller B's place to look at the pieces of the MH in order to satisfy the interior inspection requirement.

ETA:I'm sorry, but this rule needed more exemptions on the MH front.

Is that "dwelling" a mobile home or a manufactured home under the regulation?

AH, I didn't even think about that scenario, Becca. Only in South GA...LOL!

John, I think I can safely say it's a manufactured home...if they are taking it apart it's a Double wide 'new' enough to have a plate.

Yep, exactly.

It gets better - turns out there's already a MH A on the lot, but the sellers of the lot have either already sold that to some one else or are taking it with them to wherever they are going - it's not part of the transaction.

Yeesh. Only here!

Love it!

Doesn’t the exemption for qualified mortgages continue to exist for these appraisal rules under (c)(2)(I)?

Yes.