Manufactured Housing Endorsement (ALTA 7): Underwriting Guidelines

Before insuring these transactions, the agent must determine that:


1.  Under applicable law, the unit has been permanently affixed so as to become part of the land:


a.  All wheels, axles, undercarriage and draw-bars must be removed

b.  Unit has been affixed to a permanent foundation

c.  Utilities and sewer lines have been hooked to permanent connections.


2.  In applicable states, titles and registrations have been surrendered and cancelled and taxes assessed as realty. If title cannot be surrendered, the manufactured unit remains personal property and this endorsement cannot be issued.

3.  On new units, the agent should examine the certificate of title, chattel filings, or UCC for any prior lienholders. If any are listed, they must be released or their interests listed as an exception on the title policy.

4.  The deed conveying the property should convey the land and improvements thereon, describing the mobile home or manufactured housing, thereby establishing the intent that that the mobile home is considered as a fixture or improvement on the land.

5.  The mortgage should encumber the land together with improvements thereon, including an identification of the mobile home or manufactured housing, thereby establishing the intent that it be considered as a fixture or improvement to land.

6.  An affidavit must be executed by the owner stating that the unit has been permanently attached to the property and will not be moved again. This must be confirmed by a physical inspection.

7.  If state law provides that a separate UCC filing may be effective as to a third-party purchaser, then you must review the applicable UCC records in connection with the manufactured housing unit.

8.  Execution of Agents National Title mobile/manufactured home affidavit (see below). Even if the agent is not asked to issue the ALTA 7 Endorsement, the agent should verify that there are no liens on the title (either on the title certificate, if applicable, or as reflected by a UCC search). If liens are discovered, special exception should be made for such matters in Schedule B of the title policy. Likewise, if the certificate of title has not been surrendered, exception must be noted on Schedule B of the policy to the rights of owners/holders of the title to improvements and any taxes assessed against the personal property.