Triad Re-certified as a Lender Best Practices Lender 
Program Focuses On Revitalizing Manufactured Housing Lending 
November 15, 2004

Triad Financial Services was re-certified as a LBP Lender during a recent meeting of the LBP Steering Committee in Indian Wells, Calif. The Steering Committee is now communicating with a record nineteen lenders for potential certification, and most of these have expressed affirmative interest in applying for the program. 

The LBP program, launched by the Manufactured Housing Institute (MHI) in Feb. 2002, establishes a minimum set of performance standards. The voluntary program establishes performance standards that lenders in manufactured home financing may use to help enhance the integrity of the credit transaction. Lenders with the “LBP Lender” designation are able to demonstrate to their funding sources that they have the appropriate business systems, procedures and standards in place to improve portfolio performance. 

The LBP performance standards cover the various aspects of the credit transaction, from training of employees, verification and record-keeping systems, written standards for underwriting, collection and foreclosure procedures, monthly loan performance reporting, consumer protection, and other quality control systems. A summary of the LBP performance standards are on the MHI Web site, www.manufacturedhousing.org.

“The LBP program establishes a framework for all parties involved in the credit transaction to ensure consistency, integrity and ultimately improved performance,” MHI President Chris Stinebert said. “Properly used, this framework will provide the necessary assurances to rating agencies, investment bankers and others with a vested interest in our industry about the quality of the credit being generated by ‘LBP Lenders.’ 

We are very encouraged by the positive response to the LBP program from the financial community and are pleased that CIS Financial Services has completed the certification process and earned the LBP Lender designation and that Vanderbilt Mortgage and Finance, Triad Financial, and Origen Financial were recertified as LBP Lenders. 

LBP Lenders must submit to an annual independent performance audit to verify that their business practices match their compliance plans. The independent assessment function is performed by an MHI-approved external audit firm, which uses internal audits, regulatory compliance reports and quality control programs to measure compliance with LBP. 

During the LBP Steering Committee meeting, Paula Reeves, president of Financial Services at CIS Financial Services, Inc. was elected to join the steering committee. Tom Hagar, president of Mid-American Homes Center, Inc. of Lees Summit, Mo., was elected to represent the retail sector of the manufactured housing industry on the committee. Additionally, a new “at large” seat was added to the committee in order to broaden industry representation. The new seat will be filled shortly. 

The Manufactured Housing Institute is the national trade association for the factory-built housing industry, representing all segments of the manufactured and modular housing industries, including producers, component suppliers, financial service providers, retailers, community owners and operators, developers, insurers, and other parties interested in factory-built housing. From its headquarters just outside Washington, D.C., MHI works to promote the benefits of factory-built housing to relevant audiences.