Guideline: NM 16.1 Endorsement - Manufactured Housing Unit-Conversion; Loan

Explanation:

This endorsement is issued with a Loan Policy and insures (1) that the owner of the land owns the manufactured housing unit, (2) that the manufactured housing unit is on the land, (3) that the manufactured housing unit is real property, (4) that there are no personal property liens against the manufactured housing unit (unless excepted in Schedule B), (5) that the lien of the insured mortgage attaches to the manufactured housing unit, and (6) that the lien of the Insured Mortgage can be foreclosed in a single foreclosure procedure against the manufactured housing unit and (remaining) land. Fannie Mae and Freddie Mac wanted this endorsement, because of concern that several states do not establish a procedure for surrender of title to a manufactured home, and because separate foreclosures would have to be conducted for the land and the unit.

Underwriting Requirements:

We require the following:

1. Please refer to the underwriting requirements for the NM 16 endorsement.

2. In addition, please confirm that the legal description in the insured mortgage encompasses both the land and manufactured housing unit.