GlobeSt.com: Why manufactured housing and why now?

Patch: First of all, we are a Fannie Mae DUS lender providing debt for the manufactured housing communities, so we have always have had a feel for this space. What we have seen is that as the market continues to be volatile a lot of the competitive lending sources – some of which were not as focused in this space – have decided to flee. The result is a fairly dramatic increase in the number of manufactured housing communities looking for financing.

GlobeSt.com: So it is the same story playing out in other asset classes as well, with the remaining finance providers able to pick from a wider choice of deals?

Patch: Yes, that is about correct. But manufactured housing is a very stable asset class, because you have people living in these communities in homes that they own. They would have to physically relocate the home if they were to leave. So one such a housing community is stabilized, it stays that way for a long period of time.

GlobeSt.com: Your production volume this year is much larger than last year. Have you changed underwriting standards in response to what is happening in the market?

Patch: In general, credit standards have tightened somewhat, which is consistent with conventional apartment financing – but nothing specific to manufactured housing, either better or worse. LTVs, credit quality of the borrower and so forth are all tighter. I don't think you will find any asset class these days that is being financed at the same credit standards from two years ago, or even last year.