According to Bing AI: “KeyBank operates in 15 states with over 1,200 branches and 1,500 ATMs 1.” Bing AI also said on this date that “KeyBank is one of the largest bank-based financial services companies in the United States, with assets of approximately $188 billion as of September 30, 2023 1.” On October 26, 2023 KeyBank issued the following press release via PRNewswire (see Part I), which will be followed by Q&A responses provided exclusively to MHProNews by Dale Baker – KeyBank President of Home Lending (see Part II). Additional information on Key’s activities in the manufactured home space is found with more MHProNews analysis and commentary in Part III of this report. Note that Bing AI generated insights (above) and some of the information directly from KeyBank have certain distinctions.
Part I
KeyBank Now Offering Financing Options for Manufactured Homes
With new options to finance manufactured homes, KeyBank is further committing to making the path to homeownership easier and more equitable
CLEVELAND, Oct. 26, 2023 /PRNewswire/ — Today, KeyBank (NYSE: KEY) announced new financing options for manufactured homes as a part of Key’s commitment to increasing affordable product offerings in the communities we serve. Loan options are available for purchase, as well as rate/term and cash-out refinances. To qualify, the manufactured home must:
- Be a multi-wide and permanently affixed to the ground;
- Be in eligible areas within KeyBank’s footprint (not available in NY, MA, CT, FL) and titled as real property;
- Have HUD data plate and HUD certification label; and
- Be a primary or secondary home.
In addition to the financing options, the manufactured home may be eligible for KeyBank’s Special Purpose Credit Programs to help with closing costs and prepaid fees.1 Find out more about the manufactured home financing options here.
“KeyBank is committed to reducing the barriers to homeownership through affordable lending products and services, educational support, and direct investment,” said Dale Baker, President of KeyBank Home Lending. “Owning a home is a foundational step to building a long-term investment strategy. These new manufactured home financing options are the next step KeyBank is taking to do our part in helping our clients achieve their dream of home ownership and move forward on their financial journey.”
Other support KeyBank offers to help make purchasing a home attainable includes:
- Affordable loan products and programs subject to income requirements, property location, or military status. Clients may be able to qualify for lending assistance, which will mitigate costs and allow them to put the money saved toward other necessities. Certain programs, like FHA loans or the Key Community Mortgage2 are specifically designed for those who could benefit from a lower down payment.
- The KeyBank Home Buyer Credit® 3 and the KeyBank Neighbors First CreditSM 3 designed to help homebuyers of eligible properties based upon where the property is located. These programs provide a credit up to $5,000 to use for closing costs such as mortgage, flood and hazard insurance, escrow deposit, real estate taxes, and per diem interest.
- The Key Opportunities Home Equity Loan, which provides affordable terms for borrowers with qualifying properties to refinance their primary residence to a lower interest rate, consolidate debt, finance home improvements, or tap into their equity when needed. This loan features a fixed rate, with no origination fee, and a first or second lien option for loans up to $100,000.
- Online resources, such as the Mortgage Calculator and Mortgage Checklist on www.Key.com/Mortgage to help clients better understand their lending options and chart the best path forward. Additional resources, such as homebuyer education programs and seminars, are also available in certain areas.
Learn more about KeyBank’s home lending opportunities and programs, determine whether a property qualifies for Special Purpose Credit Programs, or get started on the journey to homeownership by visiting key.com/communitylending. For details on the current state of local markets and to answer any questions you may have, including whether a property qualifies for Key’s Special Purpose Credit Programs or other affordable lending options, KeyBank Mortgage Loan Officers are available to help.
About KeyCorp
KeyCorp’s roots trace back nearly 200 years to Albany, New York. Headquartered in Cleveland, Ohio, Key is one of the nation’s largest bank-based financial services companies, with assets of approximately $188 billion at September 30, 2023.
Key provides deposit, lending, cash management, and investment services to individuals and businesses in 15 states under the name KeyBank National Association through a network of approximately 1,000 branches and approximately 1,300 ATMs. Key also provides a broad range of sophisticated corporate and investment banking products, such as merger and acquisition advice, public and private debt and equity, syndications and derivatives to middle market companies in selected industries throughout the United States under the KeyBanc Capital Markets trade name. For more information, visit https://www.key.com/. KeyBank is Member FDIC. Equal Housing Lender. Mortgage and Home Equity Lending products offered by KeyBank are not FDIC insured or guaranteed. NMLS #399797
Copyright © 2023 KeyCorp®. All Rights Reserved CFMA # 231025-2301864
1 Available on primary residence first lien purchases only. Property must be located in an eligible community as determined by KeyBank. Eligible Communities are subject to change without notice. Additional terms or restrictions may apply. Ask us for details.
Special Purpose Credit Programs (“SPCPs”) are, generally, programs that are established to meet special social needs or the needs of economically disadvantaged persons by extending credit to persons who would probably be denied credit or would receive it on less favorable terms, under certain conditions. See 15 U.S.C. § 1691(c)(1)-(3); 12 C.F.R. § 1002.8(a).
2 Property must be located in a KeyBank Assessment Area. No income limitations if property is located in low or moderate income census tracts. For all other census tracts, income must be less than 80% of the Federal Financial Institutions Examination Council (FFIEC) Estimated MSA/MD Median Family Income. Completion of a HUD-approved prepurchase homebuyer education workshop may be required prior to closing. Landlord counseling may be required prior to closing on all two-unit transactions. Borrowers are not permitted to own any other real estate at the time of closing.
3 Available on primary residence first lien purchases only. Property must be located in an eligible community as determined by KeyBank. Eligible Communities are subject to change without notice. Credits up to $5,000 to be used towards closing costs and prepaid fees. Additional terms or restrictions may apply. Ask us for details.
SOURCE KeyCorp ##
Part II – Exclusive Q&A with KeyBank’s Dale Baker
The following Q&A was provided to KeyBank by MHProNews, which replied in timely fashion in part with “Hi Tony,” “Below are our responses” from “Dale Baker – KeyBank President of Home Lending.”
The replies from Baker, KeyBank’s President of Home Lending, are in green.
Our new home lending options for manufactured homes are available in the following footprint states only: AK, CO, ID, IN, ME, MI, OH, OR, PA, UT, VT, WA. The recent expansion is to include a conforming purchase/refinance option for manufactured homes which are titled as real property. Historically, Key offered a refinance option thru our home equity product.
MHProNews Q2 Has Key been involved in manufactured home community commercial lending? If so, to what extent and during what years?
Manufactured homes are part of the affordable housing solution and KeyBank is committed to providing capital for affordable housing. For example, nine organizations came together to create a financing vehicle that positions homeowners in Colorado manufactured home communities to successfully purchase their neighborhoods when they come up for sale. ROC USA® Capital and Thistle Community Housing collaborated with banks and nonprofits to secure a $55 million capital pool last October. KeyBank is proud to help expand affordable housing for residents in Colorado, and our Community Development Financial Institutions (CDFI) team invested $11 million as part of our commitment to the communities we serve, which builds on the success of our National Community Benefits Plan.
MHProNews Q3 Does Key have any interest in doing personal property lending as well as mortgage lending?
Key does not have any plans to expand into personal property lending at this time. ##
Part III – Additional Information with More MHProNews Analysis and Commentary
In order to round out the information provided by KeyBank’s President of Home Lending, Dale Baker, MHProNews did some additional research.
That research pointed to the following media release dated just over a year ago from manufactured home operation ROCUSA.
A)
Innovative Funding Pool Enables Low-Income Colorado Homeowners In Mobile Home Parks To Capitalize On 2020 Community Purchase Law
Posted by Mike Bullard on Thursday, October 20th, 2022
CONCORD, N.H. – Nine organizations have come together to create a financing vehicle that positions homeowners in Colorado manufactured home communities to successfully purchase their neighborhoods when they come up for sale.
ROC USA® Capital and Thistle Community Housing collaborated with banks and nonprofits to secure a $55 million capital pool last month. State law gives Colorado homeowners a short window to organize and secure financing to match a competing offer when their community is for sale.
“ROC USA Capital is very pleased to have partnered with Colorado Housing and Finance Authority (CHFA), Colorado Health Foundation, Colorado Trust, Ally Bank, KeyBank, Mercy Community Capital, JPMorgan Chase and Thistle Community Housing to assemble this critical Pool of capital to empower lower-income homeowners in Colorado to buy, preserve and improve the manufactured home communities in which they live,” said Michael Sloss, Managing Director of ROC USA Capital. “This below-market-rate pool of community acquisition capital is critical to long-term affordability for lower-income homeowners in Colorado.”
The $55 million was secured in September 2022.
In a typical manufactured home community (still often outdatedly called “mobile home parks”), residents own their home but rent the land on which it sits from a landlord who sets the rent and rules, and is responsible for maintaining the infrastructure, plowing roads, performing tree work and more. In a resident-owned community (ROC), homeowners purchase the land as a limited-equity cooperative. Each Member household owns an equal share of the land, elects a Board of Directors, and votes on important issues such as community rules, site fees, etc.
Since 2017, Thistle and ROC USA® have been partnering to deliver expert technical assistance and financing to lower-income homeowners to buy and improve their MHCs. Through 2021, six ROCs have been assisted and financed through this partnership, delivering long-term housing security for more than 300 homeowners in Boulder County as well as Cañon City, Durango and Leadville.
“We are so excited about the support from the banks and foundations who are part of this loan Pool, and we hope this attracts even more people to come to the table,” said Paul D’Angelo, CEO of Thistle. “We couldn’t do this without the support of our state, which values manufactured home communities and their owners. Colorado recognizes the importance of manufactured home communities in the affordable housing solution.”
In 2020, the Colorado Legislature passed an Opportunity to Purchase law, which allows homeowner groups there to match third-party offers from private investor-developers when their manufactured home communities go up for sale. However, the initial legislation required homeowner groups to secure financing commitments within 90 days of the required notice of sale. Thistle and ROC USA Capital worked with two homeowner groups in Boulder County and Durango during the first half of 2021 to buy their MHCs using this law. At that time, $21 million was assembled from seven different sources of private, public and philanthropic capital, but it took more than 90 days to do so, leaving the homeowners, Thistle and ROC USA Capital with all the risk on the 90th day.
In Fall 2021, Thistle and ROC USA Capital invited the investors from these two ROCs, and others, to form a Steering Committee to assemble a pool of up-front and below-market-rate capital for this purpose. Throughout 2022, members from the Steering Committee met, and on Sept. 15, the $55 Million Master Loan Participation Agreement was executed.
This pool of money empowers future homeowner groups using the Colorado OTP law to take on the resident-ownership process with confidence that a below-market, fixed-rate, 10-year acquisition/permanent loan product is available to them within the financing contingency period required by law.
The 40 low-income and largely Latino homeowners at Paradise Village Cooperative in Johnstown, Colo., have already taken advantage of this Pool. The homeowners closed on the acquisition of their community in early October with a $3 million first mortgage/permanent loan at 4.77 percent fixed interest rate for 10 years, a rate well below current market rates for 10-year loans. Paradise Village Cooperative serves an entirely low-income population, with 70% of homeowners earning below 50% AMI and all earning below 80% AMI. ##
B) That added research by MHProNews also noted that on August 17, 2016 — KeyBank Real Estate Capital arranged $858 million in debt financing for Yes! Communities.
C) The stock symbol for KeyCorp is KEY. Records obtained by MHProNews reflect that KeyBank Real Estate Capital has been a Manufactured Housing Institute (MHI) member. Dale Baker has been with KeyBank for 6 years and 7 months, per his LinkedIn profile on this date. He previously served in management with Chase Bank for over 7 years.
D) Without doing an exhaustive history on the firm and its activities in MHVille, restating known facts indicates the following. While this single family manufactured home lending program by KeyBank may be new, their involvement in the manufactured home industry dates back a number of years. It now appears that KeyBank is expanding their involvement in MHVille.
E) By way of disclosures, the information herein is provided as part of our MHProNews coverage of manufactured housing financing related trends and movements, not as paid or sponsored content. For some other examples of MHProNews provided news and information on moves in manufactured housing finance, consider the following. The Skyline Champion (SKY) deals with ECN Capital (ECN) to secure chattel lending with Triad Financial Services. MHProNews also reported on the Zippy Loans announcements. See those reports for more details. Additionally, MHProNews reports on captive finance programs by various manufactured housing firms, offers over a dozen years of coverage on the Government Sponsored Enterprises (GSEs) of Fannie Mae, Freddie Mac, FHFA, FHA, VA, USDA, and other aspects on capital’s role (or the lack thereof) in manufactured housing.
F) Per Bing AI on this date (11.6.2023) at 1:21 AM, other manufactured home trade publishers have not published reports on the KeyBank expansion into single family manufactured home lending. MHProNews confirmed that Bing AI insight directly. For various reasons, MHProNews wanted to monitor and see what might transpire from other industry sources.
G) In terms of editorial commentary. More lending options in the manufactured home space can be a positive for the manufactured housing industry. In the wake of the Skyline Champion-ECN-Triad deals, this move by KeyBank could be positive for MHVille, time will tell. It will be interesting to watch what steps KeyBank plans to engage in to promote their newly announced manufactured housing loan program.
MHProNews intends to monitor and do follow up reporting as deemed warranted.
For ongoing independent trade news coverage of MHVille, as always, stay tuned to the largest, most popular source for manufactured housing “Industry News, Tips, and Views Pros Can Use”© where “We Provide, You Decide.” © ###
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By L.A. “Tony” Kovach – for MHProNews.com.
Tony earned a journalism scholarship and earned numerous awards in history and in manufactured housing.
For example, he earned the prestigious Lottinville Award in history from the University of Oklahoma, where he studied history and business management. He’s a managing member and co-founder of LifeStyle Factory Homes, LLC, the parent company to MHProNews, and MHLivingNews.com.
This article reflects the LLC’s and/or the writer’s position and may or may not reflect the views of sponsors or supporters.
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