Thread Options Tools
#200801 - 06/16/04 04:25 PM Flood rule and mobile homes
mo Offline
Member
mo
Joined: May 2001
Posts: 93
Wisconsin
I think the flood reg is very confusing with regard to mobile homes not secured by the dirt they sit on. In one place (p. 26 FEMA Guidelines) it says "the loan need not include security in the real estate underlying the mobile home..." in order for the reg to apply. In the next column (same page) it says the mobile home must be affixed to a permanent foundation and that "home only" mobile homes are excluded from the definition of mobile home for flood rule purposes. Is this an apples vs. organges explanation?

What are your bank policies regarding obtaining flood determinations on mobile home loans - with our without the land they sit on as collateral?

Thank you.

Return to Top
General Discussion
#200802 - 06/16/04 04:37 PM Re: Flood rule and mobile homes
Dan Persfull Offline
10K Club
Dan Persfull
Joined: Aug 2002
Posts: 46,455
Bloomington, IN
The flood rules apply with equal force to mobile homes.

If you know where the MH will be located you must do a flood determination. If the MH is in a SFHA it must be "anchored" to a permanent foundation in order to be eligible for coverage.

The "home only" reference states if a financial institution finances a MH, and at the time the loan is made they do not know where the MH will be located they do not have to do a flood determination UNTIL they know where the MH will be "parked".
_________________________
The opinions expressed are mine and they are not to be taken as legal advice.

Return to Top
#200803 - 06/16/04 04:41 PM Re: Flood rule and mobile homes
RR Joker Offline
10K Club
RR Joker
Joined: Nov 2002
Posts: 20,644
The Swamp
Here is the gist of how we handle mobilehomes...

1) if we take the mobilehome and it is on a permanent foundation and tied down...we go thru normal protocal on notifications, etc.

2) if we take the land only, yet there is a mobilehome sitting on the land (financed by another lender), it will depend on the foundation structure as to whether or not we will require flood determinations as we will hold no lien and it's not permanently affixed.

3) the "home only" part just means that if you make a loan on a mobilehome, say, sitting on the dealer's lot, but the borrower has not yet settled on a location...you do not have to meet timeliness requirments, yet you do still use diligence and handle everything as soon as you have location info.

Hope this helps.
_________________________
My opinion only. Not legal advice.

Say you'll haunt me - Stone Sour

Return to Top