MBA warns FHFA about changing manufactured home definition in Duty to Serve rule

The Mortgage Bankers Association (MBA) is urging the Federal Housing Finance Agency (FHFA) to move carefully as it finalizes changes to its Duty to Serve (DTS) rule. The trade group backs the shift toward more flexible “eligible actions” while warning about potential unintended consequences for manufactured housing and lender operations, according to a comment letter sent Friday to FHFA Director Bill Pulte. The FHFA in June proposed an outcome-based framework that would change how Fannie Mae and Freddie Mac support manufactured housing, affordable housing preservation and rural housing. It would emphasize chattel loans, broaden how Low-Income Housing Tax Credit (LIHTC) activities are treated and expand “high-needs” coverage. Operational hurdles A key issue for the trade group is FHFA’s request for input on whether to change the definition of a manufactured home to better account for factory-built housing beyond units covered under the U.S. Department of Housing and Urban Development (HUD) code — including modular homes. “As innovation in factory-built housing continues, financing and collateral policy should evolve alongside product innovation,” the MBA stated. “Maximizing the effe...