Manufactured-home financing and resident cost differences
CFPB identified approximately 48,029 chattel loans, about 42% of manufactured-home purchase loans recorded in HMDA, and reported that 72% of those borrowers did not own the underlying land. The denominator is manufactured-home purchase loans in HMDA, the geography is the reporting U.S. market, and the report analyzes 2019 HMDA data. It is not a census of every loan or a resident-specific affordability measure.
CFPB found that chattel loans generally had higher interest rates, shorter terms, lower amounts, fewer protections, and lower refinance rates than manufactured-home mortgages. The five largest manufactured-housing lenders accounted for nearly 75% of chattel home-purchase loans in HMDA. These are measured market differences, not a basis for deciding anything about an individual resident.
The report also found that the five largest manufactured-housing lenders accounted for nearly 75% of chattel home-purchase loans in HMDA. Community owners can use this context to explain why residents may ask different financing questions, while leaving lending decisions to the resident and lender.