T-31 Guideline - TX Manufactured Housing Endorsement

Explanation:

This endorsement is issued in conjunction with a T-2 Loan Policy to insure a manufactured housing unit located on the land. Manufactured housing includes mobile homes and other manufactured housing permanently attached to the land as a fixture.

 

Please also see P-9b(7) and R-11e as applicable to endorsement T-31.

Underwriting Requirements:

(1)        You must verify that the manufactured housing is attached to the property as a permanent improvement; for example, manufactured homes installed before 1985  are verified by inspection that the tongue, axles and wheels have been removed and the home affixed to a permanent foundation, affidavit and survey, or affidavit and pictures. Manufactured Housing Units installed between 1985 and 2001 require a Certificate of Attachment from the Texas Department of Housing and Community Affairs.  Manufactured Housing Units installed after 2001 require a Statement of Ownership & Location (SOL) from the Texas Department of Housing and Community Affairs.

(2)        You must verify that the manufactured housing is not treated under state law as personal property; for example, you must verify that any title certificate previously issued has been canceled.

(3)        Part of the SOL process requires that any liens on the title certificate are satisfied and that any sales or personal property taxes on the transfer of the manufactured housing are paid.

(4)        If the Manufactured Housing Unit was installed without election as real property and is not being elected as real property, you must review the applicable UCC records in connection with the manufactured housing unit.

(5)        This T-31 endorsement is mandatory when issuing a T-2 Loan Policy for which the collateral in whole or in part is a Manufactured Housing Unit since Texas law prohibits title insurance  for manufactured housing unit that remains personal property and has not undergone the conversion to real property process through the SOL procedures.

For further guidance, refer to the applicable subsections in Section 11.04 of the National Underwriting Manual on Virtual Underwriter http://www.vuwriter.com/vumanuals.jsp?displaykey=UM00000208

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.

This guideline applies to the following form(s):

T-31 TX Manufactured Housing Endorsement