My underwriter gave me an advance draft of a letter that FHLMC is preparing to send to Michigan lenders. Short story is, since mobile or manufactured housing can't be converted from personal to real property, Freddie will no longer buy the mortgages.

I'm not clear on their rationale - is this an outgrowth of UCC 9?

I'm also concerned about the CRA implications - if secondary market funding sources dry up, will lenders still be willing to make these loans? If not, there are lower-income borrowers in rural areas who will be adversely impacted.

Has anyone heard anything similar?
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