1) Who, What and Where: (Your name, and your formal title at First Guaranty Mortgage Corporation = FGMC).

Andrew Peters, CEO, First Guaranty Mortgage Corporation.

2) Background: (Educational/Professional snapshot before entering the factory-built housing arena. Specifically mention the other firms you worked with prior to FGMC).

I entered the mortgage lending industry at age 19, starting with a summer job as a loan officer assistant with FGMC. From there, I worked my way up to being an underwriter, after which I was promoted to serving in wholesale sales management. I’ve spent my entire career with FGMC with the exception of a three year stint to manage the wholesale lending department for another lender. In 2000, I came back to FGMC, where I have since overseen the wholesale lending group before being promoted to CEO in 2011.

3) When and How: (When and how you began First Guaranty Mortgage Corporation, which could include a recap of the years since you started with FGMC.)

See above.

4) What are your personal interests or hobbies? How do you like to spend non-work time?

I enjoy spending time with my wife and 2 young children. I am also a lifelong Washington Redskins fan.

5) FGMC was lending for almost 30 years before it started to take a good look at doing factory built home loans as a targeted market segment, right? What attracted you and FGMC to the HUD Code Manufactured Home and Modular home field of lending?

Manufactured and modular home buyers are typical of FGMC’s target markets. Many of these home-buyers represent a highly under-served market segment unjustly ignored by many mortgage lenders. It has been FGMC’s experience that the vast majority of manufactured home buyers are relatively low risk borrowers who work hard to ensure they are current on their loans. Manufactured and modular homes also provide excellent options for first time home-buyers.

6) You are a direct federal loan underwriter. Tell us what loan programs your company offers and what the benefits of each may be for the consumer.

FGMC offers VA loans, which offer low down payment options for low income veterans. We also write FHA loans, which are excellent options for a number of under-served market segments. The USDA home loan is one of the last remaining no-money-down options for home-buyers in rural markets. We are also direct issuers for Ginnie Mae and do much work with Fannie Mae as well.

7) What do you think sets First Guaranty Mortgage Corporation apart from others in the industry who are lending in the MH Space today?

Unlike many lenders in the MH space, FGMC has no restrictions on its manufactured home loan products. We are proud to offer our full array of applicable loan products to home-buyers in that segment. We also take pride in our emphasis on common sense underwriting—we do not rely on automated underwriting or mathematical formulas when it comes to determining the credit-worthiness of a borrower.

8) Do you think that HUD Code manufactured home sellers – who are widely concerned with Dodd-Frank and how the CFPB’s implementation of that law will impact chattel lending – do they need to be thinking about diversification of their consumer lending options? To rephrase, with their being considerable concern about a segment of MH chattel lending vanishing because they may end up being treated as predatory loans, isn’t it wise to be doing more qualifying mortgages such as your firm offers?

Far be it for me to suggest to other lenders how they should run their respective businesses. But from our perspective, it makes sense to originate more qualifying mortgages. A majority of manufactured home loans originated today are chattel loans. These are and have been the life blood of the manufactured home industry since its earliest days, years before the HUD Code went into effect. So anyone concerned with the long term viability of the industry wants to see chattel lending continue. It is unique to manufactured housing compared to other forms of home financing.

That said, it is a bit puzzling that so many retailers and home sellers don’t make more use of land-home financing that is essentially on par with site built lending. Diversification is a business fundamental that would seem to apply here as well. There is quite a bit of risk for home-sellers – thus, the entire industry – who will not consider making more use of loan products such as FHA Title II, VA or USDA.

9) What do you consider the largest challenges facing the industry in general today? Is it image, financing, regulatory, appraisal…other factors?

Right now, I see two key challenges for our industry. The first is the atmosphere of uncertainty caused by the dramatically shifting regulatory landscape. Uncertainty paralyzes business, and hurts the availability of credit. The second challenge follows naturally from the first. The tightening of lending requirements threatens to dampen the recovery we have seen in the past year.

10) There are estimates that some 19.9 million new housing units will be needed by 2030, just to keep pace with the growing population. Given the affordability of manufactured housing, do you see it playing a more important role in the future of American housing?

It simply has to. Manufactured housing is an excellent option for our growing population. We foresee its continued growth for years to come.

12 You normally attend the big trade shows such as Louisville and Tunica. What are your plans for 2013? What do you see as the value to you and the Industry in such events?

As we always do, FGMC will attend the major MH trade shows in 2013. We are in this for the long haul, and attending the trade shows allows us to stay abreast of the latest developments as well as staying in touch with the key people in the segment. We’ve been involved for the past five years, and are active with training, sponsorships and attendance. ##