"We market our full range of loan and deposit products and services for both personal and business needs to the customer segment that was created by this program."
QAre the homes moved after the initial sale?
A.No. As the quality of the home has improved and the set up qualifications have become more rigid, very few homes are ever moved again.
QIs the manufactured home buyer purchasing a first home?
A.No. In the 1970’s, 50% of the homes sold were to first time home buyers. Now with the improved construction of the homes and more of the homes being set on private sites, the industry’s average age of the customer is near 54. The size of the homes has also helped to expand the market. Now the industry produces singlewides, doublewides, triplewides and two story homes.
Most of the homes are built with 2 x 6 wall studs, 16” on center. Most homes also come with shingled roofs and vinyl siding. All are produced under the HUD building specifications.
QWhat is the average life of a manufactured home?
A.Because of the construction requirements of manufactured homes, many options both inside and out are equal to a conventional type home. If maintained, like any home they will last a lifetime. Manufactured homes are still an affordable alternative to the American Dream.
QAlliance Credit has several lenders. How do you determine what deal comes to our bank?
A.The first important issue we determine is your banks geographic desire. The second issue is the amount of volume the investor is looking for. Once we have determined this, Alliance Credit will focus on the investor's selected geographic lending region. Customers financing their manufactured home may also choose to use other services that the investor offers. Alliance Credit has been very successful in helping the investor with cross selling other products and services. Our objective at Alliance Credit is to sell the investor solid quality loans from our priority dealers. We will only be sending loan applications that meet the investor's underwriting standards.
QWho tracks the physical damage insurance on the customer?
A.At the time of closing, Alliance Credit will supply the investor with a one year paid insurance policy. If the investor would receive any cancellation notice, they would fax it to our office and then we will make contact with the customer and the insurance agency and ensure that a policy is in place.
QTypically, what is the usual selling season of manufactured homes?
A.In the states that Alliance Credit is licensed, the season picks up in March and slows in December.
QWho establishes the interest rates and how?
A.From time to time, Alliance Credit analyzes our competition and the market. We also track common rates such as the prime rate. When there is a change we will send out a letter to our investors notifying them of any increase or decrease in rates. We do remain committed to our attempt to originate manufactured home paper that will be competitive as well as a solid rate of return.
QWhat is the percentage of singlewides to doublewides?
A.Last year, singlewide homes made up 25% of manufactured homes sold. Seventy-five percent of homes sold were multi-section.
QWhat type of contract do we use?
A.Alliance Credit uses Wolters-Kluwer contracts.