MANUFACTURED HOME LOAN POOLS AND LOAN PACKAGES —SPECIAL REQUIREMENTS

OVERVIEW OF CHAPTER
This chapter describes special requirements that apply for a pool of manufactured home loans. The requirements described in this chapter may modify, supplement or, in some cases repeat, for the purpose of emphasis, those set forth in previous chapters with respect to Issuer eligibility and servicing requirements, loan eligibility, pool and loan package requirements, required pool and loan package submission documents and the securities. Manufactured home loans may include loans secured only by a manufactured home unit or both the manufactured home unit and a developed manufactured home lot acquired in a single transaction. The pool suffix is “MH”.

MH pools may only be formed under the Ginnie Mae MBS II Program. Eligible pool collateral may include manufactured home loans whose initial loan application date occurs on or after June 1, 2009; the applicable MBS II pool type shall be “C MH”. Effective with security issuances on or after October 2010, manufactured home loans will be ineligible for pooling in “X MH” and “M MH” pool types.


30-2: ISSUER ELIGIBILITY AND SERVICING REQUIREMENTS
Issuer eligibility requirements that apply regardless of pool type are found in Chapters 2 and 3 of this guide. The following requirements also apply for Issuers of securities backed by MH loan pools.
(A) FHA Approval
The Issuer must be an approved FHA Title I mortgagee in good standing.
(B) Servicing
Once a loan is included in a MH pool, it must be serviced by the Issuer of Record until liquidation. Loan servicing for an MH pool may not be performed by a subcontract servicer.
(C) Adjusted Net Worth (ANW) Requirements
All approved Issuers must meet and maintain a minimum adjusted net worth valuation (as calculated in accordance with the HUD Audit Guide), plus $10 million, as calculated in accordance with the HUD Audit Guide, plus funds equal to 10% of each of the following:
(1) all MH MBS outstanding;
(2) the Issuer’s outstanding Commitment Line balance, and
(3) the Issuer’s outstanding pool balances for all other Single family and multifamily pools.
30-3: LOAN ELIGIBILITY & POOL REQUIREMENTS
The mortgage eligibility and pool requirements that apply, with limited exceptions, to all pool types are described in Chapter 9. Loans in MH pools must also meet the following requirements:

CHAPTER 30: MANUFACTURED HOME LOAN POOLS AND
LOAN PACKAGES —SPECIAL REQUIREMENTS
Ginnie Mae 5500.3, Rev. 1 30-2 Date: 10/01/2010
(A) Loan Requirements
(1) Security for loan: Each loan in an MH pool must be secured by a manufactured home unit, or by a manufactured home unit and a developed manufactured home lot acquired in a single transaction.
(2) Insurance/guaranty: Each loan in an MH pool must be insured by FHA under Title I of the National Housing Act.
FHA loans may only be included in the “C MH” pool type.
(3) Interest rate: The face interest rate of the loan contract is the annual rate used by the lender in computing the amount of the interest payment due in each monthly installment and the rate used in determining loan amortization. Loans with different face interest rates may be included in a single pool if the lowest face interest rate is within 150 basis points (1.5%) of the highest. The face rates must be consistent with the securities rate (see Section 30-5).
A manufactured home loan, whether written as interest-bearing or with precomputed interest, must provide that interest will be earned as if the obligation were written as a simple interest loan transaction.
(4) Monthly payments: Each loan must call for equal monthly payments, except for the first and last payments. The last payment may not exceed the normal monthly payment. The normal monthly payment for a manufactured home loan consists of the principal and interest due and payable on the first of the month in accordance with an amortization schedule that provides for payment in full by the maturity date on the loan.
A combination manufactured home and lot loan for which total indebtedness is evidenced by more than one instrument must amortize as if there were a single amortization schedule.
(5) Start of Amortization: All loans must commence amortization no later than the month in which the issue date of the securities occurs. For mortgages backing MH pools, the date of the first scheduled monthly payment of principal and interest must be not more than 48 months before the issue date of the securities, and no mortgage shall have had a loan application date prior to June 1, 2009.