Insights into Manufactured Housing Loan Performance: A Decade In Review
Freddie Mac has prepared a report on the loan performance of manufactured homes since 2009. The report includes an overview of the market for manufactured home loan origination and a summary description of manufactured home loan performance, and a detailed analyses of the average delinquency rates for various segments of the manufactured home loan market.
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Between 2009 and 2018, the percentage of mortgage loans purchased by the government sponsored enterprises (GSEs) that financed manufactured homes increased from 0.3% to 0.8%, while manufactured home loans represented a more constant or declining portion of the lending activity in the non-GSE conventional and government-insured markets. Over the same period, the GSEs’ share of the manufactured home loan market increased from 14.3% in 2009 to 26.6% by 2018.
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While the delinquency rates on manufactured home loans tend to be higher than on site-built homes, recent trends are encouraging.
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The GSEs have played an increasing role in the manufactured housing finance market over the years in terms of the number of loans purchased, the percentage of manufactured home loans relative to total loan purchases, and market share. At the same time, the delinquency rates on GSE-purchased manufactured home loans generally have been lower than in the Government and Other Conventional segments.