Through our Manufactured Home Limited Power of Attorney (Cx6874), a borrower appoints an entity (usually the lender) as the borrower’s “attorney-in-fact” in connection with a manufactured home, giving the “attorney-in-fact” limited powers over the titling of the manufactured home (e.g. executing documents to effectuate the sale of the home in cases of default, re-titling the home to correct errors, etc.).
Because this document would be inapplicable to the types of cooperative loans supported by Docutech, we will be adding the condition “Cooperative = No” to the print configuration for Cx6874. Docutech’s support for cooperative loans is currently limited to those which are eligible for purchase by FNMA, who imposes the following limitation on loans for manufactured homes:
“The borrower must own the land on which the manufactured home is situated in fee simple, unless the manufactured home is located in a co-op or condo project.
- For co-ops, both the land and dwelling must be owned by the co-op. . . .
Otherwise, mortgages secured by manufactured homes located on leasehold estates are not eligible.” (FNMA 2018 Selling Guide B2-3-02)
Because a co-operative association would own (i.e. have title to) a manufactured home located in a co-operative project comprised of manufactured homes, a borrower cannot appoint an entity as their “attorney-in-fact” with powers to alter the title, since the borrower does not have title to the home (rather, the borrower has a possessory right under a proprietary lease or occupancy agreement, due to being a shareholder in the cooperative association).
This change will take effect on January 4, 2019. If you have any questions or concerns about this change, please contact Client Support at 1.800.497.3584.