Guideline: ALTA Endorsement 07.1 and 7.1-06 (Manufactured Housing Unit-Conversion; Loan)


This endorsement is issued with a Loan Policy and insures (1) that the owner of the land owns the manufactured housing unit, (2) that the manufactured housing unit is on the land, (3) that the manufactured housing unit is real property, (4) that there are no personal property liens against the manufactured housing unit (unless excepted in Schedule B), (5) that the lien of the insured mortgage attaches to the manufactured housing unit, and (6) that the lien of the Insured Mortgage can be foreclosed in a single foreclosure procedure against the manufactured housing unit and (remaining) land. Fannie Mae and Freddie Mac wanted this endorsement, because of concern that several states do not establish a procedure for surrender of title to a manufactured home, and because separate foreclosures would have to be conducted for the land and the unit.

Endorsement 7.1 is issued with a 1992 ALTA Loan Policy. Endorsement 7.1-06 is issued with a 2006 ALTA Loan Policy.

Underwriting Requirements:

(1) Do your normal investigation in the public records of the title to the land. That investigation will include a local search of the public records for fixture filings.

(2) Issue only if the title is surrendered and canceled in accordance with your state law. In some states title cannot be canceled. All liens shown on the title should be satisfied.

(3) If state law requires a review of other governmental records for personal property liens of a unit for which title is currently being canceled, check those records.

(4) Verify any personal property taxes have been paid, if the title has not been canceled until the current closing.

(5) Determine that the unit is permanently located on the land by inspection, survey, or credible affidavit. Evidence of permanent location should include removal of axles and wheels and a permanent foundation.

(6) If the title has previously been canceled, be satisfied that the unit is taxed as real estate.

Any revision to this form requires approval of a Stewart Title Guaranty Company underwriter. The underwriting guidelines contained herein have been provided for general reference. The facts, circumstances, and location of the subject property should be considered when determining the issuance of the requested form or endorsement. Please note that all of the forms and endorsements included in this system may not be available in all states. Accordingly, please contact the appropriate Stewart Title Guaranty Company underwriting personnel in order to determine availability.

Compliance with the underwriting guidelines contained herein in no way obligates Stewart Title Guaranty Company to issue any form or endorsement.