Current through April 3, 2024
(1) Definitions:
(a) "Mobile home" - A movable dwelling (for
occupancy on land) made of one or more units, and having minimum width of 10
feet, minimum area of 400 square feet, and year-round living facilities for one
family, including permanent provision for cooking, eating, sleeping and
sanitation.
(b) "Mobile home
chattel paper" - A document evidencing a loan secured by a first lien on one or
more mobile homes and equipment installed therein.
(c) "Manufacturer's invoice price" - A
manufacturer's itemized charges shown on its invoice, for a specifically
identified mobile home, furnishings, equipment and accessories installed by the
manufacturer, and freight.
(2) General Investment Authority. An
association, as approved by its Board of Directors, may invest in a mobile home
chattel paper by making or buying whole loans or installment sales contracts on
mobile homes; provided, that the total investment made under this section may
not exceed 20 percent of an association's assets.
(3) Sound Investment Practices. Appraisals or
other generally accepted systems of valuation of used mobile homes shall
substantiate the term to maturity of loans made. Chattel paper shall have
provisions to protect the association, specifically regarding insurance, taxes,
other governmental levies, and maintenance and repairs, and may include any
other protection provision which is lawful and appropriate. The association may
pay taxes or other governmental levies, and insurance premiums or other similar
charges to protect its security interest.
(4) Retail Financing
(a) Insured/Guaranteed Loans - An association
may invest in retail mobile home chattel paper which is insured or guaranteed
under the National Housing Act or Chapter 37 of Title 38, United States Code,
as amended, or which has a commitment for such insurance or guarantee, if
satisfactory local servicing of that paper is arranged.
(b) Conventional Loans - An association may
invest in conventional retail mobile home chattel paper if:
1. The mobile home is to be maintained as a
residence of the owner or an owner's relative;
2. The mobile home is located at a mobile
home park or other permanent or semi-permanent site in the association's
regular lending area or within 100 miles of an office of the association's
service corporation if the association purchased the loan from such service
corporation when the investment is made, or within 90 days
thereafter;
3. The loan is payable
in substantially equal monthly installments over 20 years or less;
and,
4. The loan amount (excluding
time-price differential or interest, however computed) does not exceed 90
percent of buyer's total costs, including freight, itemized set-up charges ,
sales or other taxes, and filing or recording fees imposed by law. Insurance
premiums may be financed for customary physical damage on the mobile home for
an initial policy term not to exceed three years; no other insurance may be
financed and included in buyer's total costs.
(5) Purchase of Participation Interests in
Mobile Home Chattel Paper.
(a) General - An
association may buy, within the 20 percent-of-assets limit, a participation
interest in retail mobile home chattel paper which meets all requirements of
these regulations, other than lending area restrictions, if:
1. The seller of the participation interest
is an institution whose accounts or deposits are insured by the Federal Savings
and Loan Insurance Corporation, or the National Credit Union Administration, or
a service corporation thereof, and the seller remains responsible for servicing
the chattel paper, either directly, or through a service corporation in the
case of an institution seller;
2.
The seller retains at least a 25 percent interest in each document evidencing a
loan secured by the chattel paper;
3. The chattel paper is secured by a mobile
home located, or to be located within 90 days thereafter, at a mobile home park
or other permanent or semi-permanent site within 100 miles of any office of the
seller or the seller's service corporation which is servicing the chattel
paper; provided, that such office is maintained and staffed to properly service
loans sold.
(6) Sale of Mobile Home Chattel Paper.
(a) All mobile home chattel paper and
participation interests therein shall be sold without recourse.
(b) No association may make or sell mobile
home loans or participations in such loans if, at the close of its most recent
semi-annual period, it has mobile-home-loan scheduled items (other than assets
required in a supervisory merger) in excess of 5 percent of its total
mobile-home-loan portfolio; provided, that an association may apply to the
commissioner for a waiver of this restriction.
Authority: T.C.A. §§
45-3-402 and
45-3-703.
