4710.1

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TABLE OF CONTENTS

Paragraph Page

CHAPTER 1. GENERAL ADMINISTRATIVE POLICY

1-1. Scope 1-1

1-2. Responsibilities 1-1

1-3. Contract of Insurance 1-1

1-4. Lending Area 1-3

1-5. Dealer Relations 1-3

1-6. Dealer Approval 1-4

1-7. Supervision by Lending Institutions 1-6

1-8. Maintenance of Record on Each Approved Dealer 1-7

1-9. Reporting Irregularities to HUD-FHA 1-7

1-10. Precautionary Measures 1-7

1-11. Ineligible Persons 1-8

1-12. Insurance Reserves 1-8

1-13. Claim for Loss 1-9

1-14. Insurance Charge 1-10

1-15. Restrictions of Eligibility of Loans for Insurance 1-10

1-16. GNMA Participation 1-12

CHAPTER 2. DISBURSEMENT OF ELIGIBLE LOANS

2-1. General 2-1

2-2. Distinction Between \"Direct Loans\" and \"Dealer Loans\" 2-1

2-3. Direct Loans 2-1

2-4. Dealer Loans 2-1

2-5. Borrower\'s Use 2-2

2-6. New or Used Mobile Homes 2-2

2-7. Structural Design and Standards 2-2

2-8. Location Standards 2-3

2-9. Credit Investigation and Approval 2-4

2-10. Eligible Obligations 2-5

2-11. Loan Documents 2-6

2-12. Borrower\'s and Dealer\'s Placement Certificate,

Form FH-2 (MH) 2-6

2-13. Manufacturer\'s Invoice 2-7

2-14. Advance Notice to Borrower 2-8

2-15. Additional Loan Requirements 2-10

2-16. Charge Formula 2-11

2-17. Prepayment Rebate 2-12

2-18. Refinancing 2-13

2-19. Collections 2-13

2-20. Assumption Agreements 2-14

2-21. Permissible Late Charges 2-14

2-22. Pre-Claim Collection Assistance 2-15

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i 9/73

HUD-Wash., D. C.

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4710.1 CHG 3

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Chapter 3. REPORTING OF LOANS

\* 3-1. General 3-1

3-2. Reporting Requirements 3-1

3-3. Mailing Instructions 3-3

3-4. Preparation of Reporting Forms 3-3

3-5. Clearance of Exceptions 3-4

3-6. Computation of Term and Insurance Charge 3-4

3-7. New Loans 3-5

3-8. Refinancing 3-6

3-9. Insurance Charge Payment 3-8

3-10. HUD Assigned Numbers 3-10

3-11. Reconcilement Form 3-10

3-12. Late Charges on Insurance Charges 3-12

3-13. Refund or Abatement 3-13

3-14. Loan Acknowledgment Date 3-14 \*

Chapter 4. SETTLEMENT OF CLAIMS

4-1. Introduction 4-1

4-2. Assembling the Necessary Papers 4-1

4-3. Examining Papers for Completion 4-2

4-4. Correspondence File 4-4

4-5. Repossession Costs 4-4

4-6. Deficiency Judgments 4-5

4-7. Insurance Refunds 4-5

4-8. Title I Claim for Loss (FH-7) 4-5

4-9. Computation of Insured Loss 4-6

4-10. Example of Computation of Insured Loss 4-6

Appendices

1\. Loan Chart

2\. FH-1, Credit Application for Mobile Home Loan

FH-2, Placement Certificate for Mobile Home

\* 3. HUD-56004, Title I Loan Reporting Manifest (Reverse)

HUD-56004, Instructions for Preparation of Title I

Loan Reporting Manifest

HUD-56004, Title I Loan Reporting Manifest (Face)

Instructions for Preparation of Punched Tabulating Cards

Title I Punch Tabulating Card Reporting of Loans \*

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Appendices

\* Instructions for Preparation of FH-5, Title I Refinancing

Report

FH-5, Title I Refinancing Report

Instructions for Preparation of Title I Transfer of Note

Report, FH-6

FH-6, Title I Transfer of Note Report

Instructions for Preparation of Title I Transfer of Mobile

Home Loans to GNMA Pool, Form HUD-676

Form HUD-676, Title I Transfer of Mobile Hone Loans to GNMA

Pool

Form HUD-2041, Title I Loan Statement - Exceptions Reported

Key to Reject Error Codes Appearing on Monthly Statement,

FHA Form 679

Form HUD-2041, Title I Loan Statement - Initial Billing Section

Form HUD-2041, Title I Loan Statement - Renewal Insurance

Billings Section

Form HUD-2041, Title I Loan Statement - Special Billings

Section

Form HUD-2041, Title I Loan Statement - Claims Section

Form HUD-2041, Title I Loan Statement - Summary Section

Form HUD-2041, Title I Loan Statement - Return Sheet

Form HUD-2041, Title I Loan Statement - Exceptions Reported

Form HUD-646, Title I Monthly Statement Reconcilement of

Insurance Charges \*

4\. FH-7, Title I Claim for Loss (Cover Sheet)

Instructions for Preparation of Title I Claim for Loss

\- Transmittal Letter

FH-7, Title I Claim for Loss - Transmittal Letter

Instructions for Preparation of Title I Claim for Loss

\- Application Voucher

FH-7, Title I Claim for Loss - Application Voucher

Table - Exact Number of Days in Fractional Parts of a Year

Table - Interest on \$1.00 at 7 Percent Per Annum

5\. Alphabetical Index

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iii 3/82

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FOREWORD

This Title I Mobile Home Loan Handbook, comprising four chapters, has

been prepared to assist lending institutions in the proper operation of

their Title I Mobile Home lending activity pursuant to the requirements

of the Housing Act of 1969 and the Title I Regulations.

The general administrative policy of the Department of Housing and

Urban Development-Federal Housing Administration is contained in

Chapter 1. Chapter 2 sets forth the policy and procedures with respect

to the disbursement of eligible loans (the loan documents required,

financing charges, and refinancing and collection procedures). Chapter

3 covers the reporting of loans for insurance registration and the

insurance charge procedures. Chapter 4 covers the settlement of claims

for loss.

We believe the Operating Handbook will be helpful in answering numerous

questions normally encountered by lenders in the Title I lending

activities.

References:

\(1\) GNMA 5500.1A - Government National Mortgage Association

Mortgage Backed Securities Guide

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