Yes many of todays Mhomes are being sited on foundations. That is because they can then access the mortgage back security side of finance (which fanny will purchase). And just for fyi todays Mhomes are built to HUD standards and can be legally sited anywhere a stick built house can be sited (with very few exceptions, one being cc&r’s.
Yes it is a cyclical industry coming up to it’s 7 year bear market end. The problem as I see it is the fallout from the housing market cleansing that is surely to affect us all in ways we probably can’t forsee right now. Also for the record I’m of the opinion that these cycles are created (or perhaps caused to be more pronounced) due to our system of money creation (banking system). Money is created which goes looking for yield. This creates imbalances (bubbles) which are then realized to be overvalued and a cleansing then ensues.
Regarding the question about abs and mbs I would say your exactly right. In the past the bank would approve your loan knowing it was going to hold it to maturity. As such they were fairly prudent about their loans. Some smart Wall St. guys decided to purchase all these loans, package them together and sell them off in little pieces. People (investors) assumed there was less risk since they’re only purchasing small pieces. Money then flowed in. At some point everyone realizes the risk is the same and even greater since the lending criteria was relaxed due to high demand. Money flows out.
By the way I’ve been to a few housing blogs and this one is by best in quality of posts. Actually its the first blog I’ve ever posted something on.
