A number of different federal lending compliance regulations use the term “manufactured home.” For example, the appraisal rules in Section 1026.35(c) of Regulation Z contain exemptions for both mobile home and manufactured homes, but the exemptions differ for one category of home versus the other. For HMDA and Regulation C lenders must gather and submit information regarding, among other categories, the property type.
There seems to be much confusion regarding the definition of “manufactured home.” The regulations generally refer to HUD’s definition , which appears at 24 CFR 3280.2. That definition states dimensions of the structure, but fails to clearly differentiate between a manufactured home, a mobile home or other similar structures. The following is an attempt to simplify and clarify the definition of “manufactured home.”
The term “manufactured home” refers to a structure built to the Manufactured Home Construction and Safety Standards (HUD Code). the structure displays a red certification label on the exterior of each transportable section. Manufactured homes are built in the controlled environment of a manufacturing plant and are transported in one or more sections on a permanent chassis.
Manufactured homes are constructed according to the HUD Code, which unlike conventional building codes, requires manufactured homes to be constructed on a permanent chassis. Modular homes, on the other hand, are constructed to the same state, local or regional building codes as site-built homes. Other types of systems-built homes include panelized wall systems, log homes, structural insulated panels, and insulating concrete forms.
The HUD Code was created on June 15, 1976. Homes built prior to that date, even with modifications, do not meet the HUD standards and cannot be accepted as compliant with the HUD Code. HUD will not issue tags for a mobile home constructed prior to June 15, 1976.