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Bill aims to clear title issues for manufactured homes to enable mortgage financing
Summary
House Bill 785 would allow a process to convert titling-deficient manufactured homes into real property to improve financing access; sponsor and title-industry witnesses said the change helps owners without tags or original paperwork, while no opponents were recorded at the hearing.
HELENA, Mont.
House Bill 785, presented to the Senate Taxation Committee on March 27, would create a process for owners of owner-occupied manufactured homes to convert property from personal chattel into real property when owners cannot locate vehicle-style titles or registration tags. Supporters said the change will allow owners to obtain conventional mortgage financing and improve resale prospects.
Representative Terry Falk (House District 10) opened the bill by explaining that the law already permits conversion of a manufactured home affixed to a permanent foundation into real property, but that some long-standing homes lack the tags, titles or paperwork needed to process the conversion. "This bill attempts to fix that," Falk said. He described the situation as rare but consequential for individual homeowners who otherwise face limited financing options and higher interest rates.
John Sinrude and Stuart Doggett, representing title and land-title industry groups, testified in support and said they had worked on the bill language to ensure title insurers can provide an Alt-7 endorsement where appropriate. Sinrude said the process would include a slightly different affidavit and that title insurers had agreed in principle to issue coverage if the statutory process is followed and the property meets conversion standards (permanent foundation, removal of axles/tongue, engineering where HUD requires).
Witnesses and sponsor described the practical benefits: converting to real property can lower down payments required by lenders, allow use of standard mortgage products and qualify buyers for established down-payment assistance programs. Committee members asked clarifying questions about foundations that meet HUD or FHA standards; Sinrude and other witnesses explained that approved approaches include engineered pier and foundation systems, concrete footings tied to the home frame or other HUD-approved attachments and engineer stamps where needed for Fannie Mae/Freddie Mac financing.
No opponents or informational witnesses recorded opposition during the committee hearing; an informational Department of Revenue witness was present for technical questions. Representative Falk asked that the committee note the bill had unanimous support in House readings and asked for committee consideration. The hearing closed with the sponsor available for follow-up.
