This seems like a paradox, but it should make Mobile Home loans a logical consideration among the possible lenders that are looking to emerge into a lucrative new niche insdustry. Which leaves everyone in the Manufactured Home community asking the question: Who will step up to the plate to be the leading Mobile Home Lender? It is possible that Warren Buffet will step up to the plate, but his big investments and movements lately have seemed incongruous. He may move to a low-stakes table, while the Manufactured Home financing insdustry is overtaken by a new investment company willing to emerge into a new market starving for capital.

Lending standards in the Mobile Home finance market have typically become restricted during periods of economic crisis. This is expected, but nevertheless unwelcome. The clenched standards that lending institutions are now maintaining for Mobile Home loans is similar to a agriculturist who drains all the nutrients from his soil as fast as possible. The farmer then points the finger at the grocer for his losses, instead of realizing that he is actually to blame for poisoning the well. The financial institutions have been reaping the benefits of the relaxed legislation for many years now, while profiting from allowing irresponsible financing to occur, then securitizing the loan and selling it off. Now the hens have come home to roost, and the banks are acting irresponsibly in the opposite direction, on the side of over caution. Mobile Home banks are using any excuse to reject even the lowest risk loans.

Mobile Home loan California agents are now left asking who the new primary lender will be in the Mobile Home loan industry after this economic crisis. In recent news the government has blocked Taylor, Bean and Whitaker from making any future loans backed by by the federal government. HUD believes the institution did not submit a necessary financial report, which amounted to fraud concerns. Taylor was also instructed to cease in issuing MBS for Ginnie Mae. This firm was the former premier source of financing for manufactured housing, they provided financing for nearly 13 percent of all Manufactured Home investments in 2007, which were insured by the Federal Housing Administration.

Countrywide, Wells Fargo and JP Morgan are the next largest manufactured housing investors, but these companies aren't as active as they used to be in the Mobile Home loan insdustry. The few number of lenders will likely lead to reduced competition, yieldning a high demand and therein, increased interest rates. In this scenario, the lending institutions have the advantage and will likely issue a limited number of loan programs available to refinance or finance a Manufactured Home in America.

Manufactured Homes are the primary first step towards homeownership for lowincome and retired Americans for quite awhile. Manufactured Home mortgage agents are finding it difficult to find new sources of mobile home funding from a group of lenders that has shrunk during the past several years. Manufactured houses, which are factory-built in parts and then put together at a land site, are significantly less expensive than traditional homes. According to the Commerce Department, the average price for a Manufactured Home in 2008 was $65K, much lower than the average price of $292K for a site-built home.

Strangely, Warren Buffet's Berkshire Hathaway revealed recently that in this current housing/banking crisis, their Manufactured Home customers are foreclosing less and making their loan payments more. Berkshire subsidiary Clayton Homes' delinquency rates for mobile home loans have also been stable during these times of turmoil: the delinquency rate was 3.26% in 2004; it was at 3.5% in 2008; and now it's 3.82% here in 2009. However, the delinquency rate in the traditional housing market is higher, around 6.4%. Annual credit losses are running steady at a reasonable 1.5% of the loan portfolio. It is worth mentioning, however, that Clayton does not securitize their loans. This means the loans remain on their books, so they are much more conservative in their loan approval process.

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