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e. Pre-Closing Reviews by HUD (05/08/2025)
i. Standard
All Loans are subject to a pre-closing review period in accordance with the Direct Endorsement Authority for Manufactured Home Loan process. HUD will examine each Loan prior to closing to ensure that the Lender is consistently submitting Loans that satisfactorily meet Title I program requirements. Once a Lender has completed the initial pre-closing review period, which includes the submission of a minimum of 10 Loans that are approved to close, HUD may approve the Lender for the Title I Direct Endorsement Program that will allow the Lender to underwrite and close Title I Manufactured Home Loans without prior review by HUD.
Lenders that are approved for the Direct Endorsement process are not required to submit loan origination documents for pre-closing.
ii. Pre-Closing Case Binder Submission
The Lender must first underwrite the Loan, then include the following documents in the case binder and submit to the FOC before closing the Loan.
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II. ORIGINATION THROUGH POST-CLOSING/ENDORSEMENT E. Title I Insured Programs
4. Manufactured Home Loan Program
Left Side Sales contract(s) or sales agreement(s) for unit and/or lot Appraisal – not applicable for newly constructed Manufactured Homes; applicable to:
• purchase of an existing home; or
• refinance of a non FHA-insured Loan.
Invoices:
• Manufacturer’s Invoice; and
• skirting, air conditioning, other appurtenances, etc. Itemized statement of costs, fees and charges Evidence of lot ownership or Leasehold for individual lot Certification of home site suitability Form HUD-55014, Warranty for New Manufactured Home Verification(s) of identity and SSNs Documentation of CAIVRS and LDP/ General Services Administration’s (GSA) SAM clearance Truth-in-Lending Disclosure
Right Side Underwriter’s report/worksheet showing calculations for maximum loan amount, LTV and debt-to-income ratios, and listing any compensating factors Uniform Residential Loan Application (URLA) and form HUD-92900-TI Explanation and supporting documentation for adverse credit information and/or inquiries Verification of rent payment history Verification(s) of payment history for other accounts not on credit report, if any Verification(s) of employment, income, and gaps (including explanations) Verification of assets, including:
• downpayment (deposit);
• other assets, if needed to complete the transaction or for compensating factor; or
• concurrent financing, if any. Source of funds for downpayment and other assets Appraisal for Trade-In of Manufactured Home (if any for source of funds) Loan processing file notes, if any
iii. Lender Options for Notice of Return Issued Pre-Closing
In the event of a Notice of Return (NOR) on a pre-closing case binder review, Lenders may exercise any of the following options:
• take corrective actions (e.g., submit additional or revised documentation) to resolve reasons for the NOR determination; and/or
• close the Loan without FHA insurance; or
• cancel/reject the Loan.
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II. ORIGINATION THROUGH POST-CLOSING/ENDORSEMENT E. Title I Insured Programs
4. Manufactured Home Loan Program
iv. Loan Approved
Once a DE-approved Lender has approved a Loan, the Lender may then close the Loan and proceed with the insurance application process. Lenders that do not have DE approval must underwrite the case binder and submit to HUD for final approval prior to closing the Loan.