Fannie-Freddie look to provide financing for factory-built homes

Washington

FANNIE Mae and Freddie Mac may soon begin to provide financing for buyers of manufactured homes, according to draft plans released on Monday.

The move is part of an effort by the mortgage-finance giants to ease burdens on low-income borrowers, many of whom turn to factory-built housing as a inexpensive alternative to traditional residences. At the same time, it could also bring criticism from people concerned about the riskiness of lending for the mobile homes, which often sit on leased land and can depreciate quickly in value.