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RFI: Increase Utilization of Conventional Mortgage Lending Programs in ROCs

Request for Information

Project: Increase Utilization of Conventional Mortgage Lending Programs in ROCs

Date Issued: November 25, 2024

Overview

ROC USA is seeking information from qualified third-party vendors or consultants (hereafter referred to as ‘consultant’) to support our efforts in building and improving access to sustainable home financing for homebuyers and homeowners in shared equity resident owned manufactured home communities (ROCs). The selected consultant will contribute to expanding access to flexible, affordable mortgage options for manufactured housing residents, initially leveraging the New Hampshire-based models and supporting efforts to implement similar financing products in Vermont, Oregon, and California.

Background

ROC USA supports a network of 337 ROCs, representing over 23,000 homeowners, across 21 states.  It is a national organization with eight state-wide affiliates with expertise in all aspects of manufactured housing, resident owned community finance and operation, and cooperative development.

ROC USA’s initial scan of home financing in ROCs indicates 63% of homes purchased are purchased with cash. With the exception of New Hampshire, where manufactured homes are titled as real estate, and where the local CDFI and ROC USA affiliate, the New Hampshire Community Loan Fund, have built a robust home-in-ROC financing market over 20 years, home financing is unavailable in most markets.  Homebuyers cannot access financing, and homeowners cannot sell homes for what they are worth in ever-appreciating housing markets.

Currently, the New Hampshire Community Loan Fund (NHCLF) offers the Welcome Home Loan product, a long-term, fixed-rate mortgage for manufactured (mobile) homes located in New Hampshire ROCs or private land. Additionally, the state housing finance agency, New Hampshire Housing, offers a competitively priced  Home Preferred Manufactured Housing product, within Fannie Mae-approved ROCs, providing up to 95% loan-to-value (LTV) with mortgage insurance.

However, no other CDFIs or local lenders have replicated the Welcome Home Loan Product despite its exemplary repayment performance and wide-spread renown; and, only 14 of 151 ROCs in NH have been approved by Fannie Mae and very few ROC Preferred Loans have been originated, again despite exemplary repayment performance and extensive efforts to promote the product.

ROC USA is interested in supporting NHCLF and Fannie in their efforts to expand Fannie’s foot-print of approved ROCs in NH and the expansion of both home-in-ROC loan products to other states. Consultants will assist in creating standardized procedures for lenders to underwrite, originate, and process ROC home loans, beginning with Vermont, Oregon, and California.  

Scope of Services

The consultant will work closely with ROC USA to achieve the following objectives across the target states:

  • Collaborate with NHCLF on the identification and resolution of the barriers presented by the current Fannie Mae community approval requirements, process, and documentation:
    • Identify barriers and create a report/inventory of what would need to change to dramatically increase the number of ROCs in NH that could/would be approved to offer the ROC Preferred Loan Product;
    • Engage stakeholders, including ROCs and Fannie in developing proposed solutions.
    • Facilitate a process to get Fannie approval of revisions to product guide, process, and documentation so that barriers are eliminated or mitigated.
    • Support and track implementation.
  • Develop Standard Operating Procedures (SOPs):
    • Create detailed SOPs for lenders to underwrite, originate, and process ROC home loans, based on the Welcome Home Loan and Home Preferred Programs.
    • Tailor the SOPs to reflect state-specific regulations and stakeholders’ needs.
  • Implementation in Vermont (November 2024 through June 2025)
    • Collaborate with NHCLF to replicate successful New Hampshire processes, including engaging appraisers and vendors.
    • Shadow ROC USA in program design, implementation, and documentation of best practices.
    • Document key processes and potential challenges for future program expansion.
  • Implementation in Oregon (January 2025 – September 2025)
    • Partner with Casa of Oregon to adapt and promote the New Hampshire and Vermont financing models.
    • Recruit local lenders (e.g., Community Development Financial Institutions, Credit Unions, or OHCS) for program participation.
    • Address any differences in real property requirements relative to New Hampshire and Vermont.
    • Develop and disseminate educational materials for ROC Boards, members, and lenders. An additional third-party consultant will be identified to support the development and creation of the materials, if necessary.
  • Preparation for Expansion into California
    • Initiate discussions with California Housing and Community Development (HCD) and California Housing Finance Agency (CalHFA) for early-stage promotion.
    • Create a strategy to integrate a conventional home-only financing product into California’s existing grant and permanent funding structures.

Timeline

The consultant is expected to deliver services over the following periods:

  • Vermont: December 2024 – June 2025
  • Oregon: January 2025 – September 2025
  • California: Preparatory work as determined in alignment with program milestones

Submission Requirements

Interested consultants should provide the following information:

  1. Organizational Overview: Summary of relevant experience, particularly with mortgage lending in resident-owned communities or manufactured housing sectors.
  2. Proposed Approach and Methodology: Outline your approach to developing SOPs, shadowing ROC USA’s Vermont implementation, and supporting lender recruitment and program adaptation for each state.
  3. Team Composition: Include the qualifications and roles of key personnel.
  4. Budget Estimate: Preliminary cost structure to achieve each milestone, or hourly rates pertaining to each classification or level of position.

Submission Deadline

Please submit your response by December 6, 2024.

Contact Information

Nicholas Salerno, Chief Operating Officer

ROC USA

6 Loudon Road, Suite 306, Concord, NH 03301

Phone: 603-513-2791 Email: nsalerno@rocusa.org