The manufactured housing sector has emerged as one of the mortgage industry's more stable performers, according to a new report from Fitch Ratings. The sector has experienced very slight increases in loss severities, net loss rates and 60-day delinquencies over the last year – a far cry from the volatility of 2002, when the sector was disrupted by the bankruptcy of major market participants such as Oakwood Homes and Conseco Inc., Fitch explains.
‘Stable manufactured-housing performance has been driven by consistent servicing, loan seasoning and continued reductions in new-unit supply,’ says Director Susan Hosterman.
A recently conducted rating review of Fitch's rated manufactured-housing portfolio yielded over 90% in rating affirmations. Fitch also upgraded another 2% of its top-rated tranches because of an improvement in the relationship between credit enhancement and expected pool loss.
‘With the severity of liquidated existing units now stabilized, Fitch does not envision much change in manufactured-housing performance over the next year,’ adds Hosterman.
SOURCE: Fitch Ratings