Tenn. Comp. R. & Regs. 0180-12-.15 - MOBILE HOME LOANS

Current through March 20, 2022

(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.

Notes

Tenn. Comp. R. & Regs. 0180-12-.15
Original rule certified June 10, 1974. Repeal and new rule filed June 30, 1980; effective September 15, 1980. Transferred from the Department of Commerce and Insurance by Executive Order Number 38; effective February 11, 1983.

Authority: T.C.A. ยงยง 45-3-402 and 45-3-703.

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