16-02-2013 Study year 2012-2013
Prof. Dr. Brendan O’Dwyer Semester 2, Blok 1
Financial Statement Analysis Anahita Farokhi 6041949
Case 3: “Manufactured Homes” (MANH)
Question 1
Manufactured Homes is engaged principally in the retail sale of new and used manufactured single-family homes and targets individuals in the low income category. Manufactured Homes focuses on the lower end of the market, according to the company this has two advantages: 1. Since its customers were seeking to fulfil an essential housing need, its customers were less affected by changes in general economic conditions. 2. Repossession rates were significantly lower than those of the industry, since its customers were likely to work very hard
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It says the following: 1. that Manufactured Homes recognizes sales when payment is received or, in the case of credit sales, when a down payment (generally 10% of the sales price) is received and the company and the customer enter into an instalment contract. 2. the majority of instalment contracts is sold with recourse to unrelated financial institutions at an agreed upon rate which is below the contractual interest rate of the instalment contract 3. at the time of sale, Manufactured Homes receives immediately payment for the stated principal amount of the instalment contract and a portion of the finance participation resulting from the interest rate differential 4. the remainder of the interest rate differential is retained by the financial institution as security against credit losses and is paid to Manufactured Homes in proportion to customer payments received by the financial institution 5. Manufactured Homes accounts for these transactions as sales in accordance with Statement of Financial Accounting Standards No. 77, “Reporting by Transferors for Transfers of Receivables with Recourse”, and recognizes finance participation income equal to the difference between the contractual interest rates of the instalment contracts and the agreed upon rates to the financial institutions; the portion retained by the financial institutions is discounted for estimated time of collection and carried at its
Home ownership is the American dream! It is one of the most costly purchases an individual or family can make in their lifetime. Some people save until they have cash to purchase however, many people borrow money from a bank or lending institution; when a person borrows money to purchase a home the loan is called a mortgage. The lender is called the mortgagee and the borrower is called the mortgagor; banks have several different types of mortgages: fixed rate mortgage, adjustable rate mortgage, investment mortgage and much more. Borrowers have to undergo the lender underwriting process to show financial capability of repaying the mortgage (Makarov & Plantin, 2013). In this article I will use a fictitious person named “Julianna,” she is in the process of buying her first home at age 30; I will be her lender and will use mathematical procedures to find out what is her down payment, principle, installment payment, points (closing cost), mortgage maturity value and total interest paid.
This home is $20,000.00 to be financed at 80% of the purchase price. The purchase price is $20,000.00 and 6the interest rate is at 5%
The secondary mortgage market was on the up-rise when Michael Lewis accepted a job at Salomon Brother’s. The secondary mortgage market was the selling of bonds, with a promise to be paid back with mortgage loans. The lender, whomever that
Manufactured Homes sells affordable fully furnished and carpeted mobile homes in the southeast of the United States of America. These Potential customers for Manufactured Homes include individuals seeking a single-family primary residence but lacking the ability to purchase conventional housing, retirees, and those wanting a second home for vacation purposes. The company targets individuals in the low-income category, which is a segment of the manufactured homes market in the company’s seven state area. The company’s customers are typically between the ages of 18 and 40, blue-collar workers in manufacturing, service and
Keycorp loaned Planned Pethood, a veterinary facility, $389,000 at an altered financing cost for a term of 10 years. The loan was secured by real property possessed by Planned Pethood. Prepayment of the loan was allowed with the payment of a prepayment premium, in a sum indicated in the promissory note. Arranged Pethood chose to prepay the loan eight years and eight months early and paid Keybank a prepayment premium of around $40,000. The prepayment premium was figured in light of an equation utilizing the remarkable chief parity and the term staying on the loan. Arranged Pethood recorded suit, affirming that the prepayment premium added up to an unenforceable liquidated harms statement and that the measure of the prepayment premium was
Manufactured Homes sells affordable fully furnished and carpeted mobile homes in the southeast of the United States of America. These Potential customers for Manufactured Homes include individuals seeking a single-family primary residence but lacking the ability to purchase conventional housing, retirees, and those wanting a second home for vacation purposes. The company targets individuals in the low-income category, which is a segment of the manufactured homes market in the company’s seven state area. The company’s customers are typically between the ages of 18 and 40, blue-collar workers in manufacturing, service and
b. Your family member signs a promissory note to you stating when she will begin making monthly payments on this loan
This Report is for the use only of the party/s to which it is addressed for first mortgage purposes only and is not to be used for any other purpose. No responsibility is accepted or undertaken to third parties in respect thereof. No responsibility is accepted or undertaken in the event that the party/s to which it is addressed use this Report for any other purpose apart from that expressly outlined above.
Manufactured Homes (MH) uses the installment sales method for recognizing revenue. Using this installment sales method assumes that the customer probably will not default and there is little risk for the company. As cash is supposed to come in, revenues are matched with expenses. However, if the customer defaults, then there are many future expenses that cannot be matched with corresponding revenue. The company usually sold its installment contracts to unrelated financial institutions and was responsible for payments to the financial institution if the customer defaulted. Thus, MH bore risk for the houses it sold. MH charged its customers a portion above the market rate, and the financial institution paid MH a portion
Real estate finance in the modern community is changing the perspective of modern lending and purchases. It is a means to contemporary community’s ability to develop a foundation for discussing the nature and means of public spending and purchase. As a self-government sponsored agency, Federal National Mortgage Association (FNMA) also known as Fannie Mae works with the ultimate responsibility of lending and buying secondary mortgages in the market (Oesterle, 2010). It helps in the conservation of interest rates in the real estate business in the contemporary community. There is also the need for focusing on the impacts of the Fannie Mae on real estate finance. The approach of the Fannie Mae helps lenders to use the money gained from the secondary
The subject collateral consists of 2 parcels currently know as 4339 & 4401 Mount Vernon Memorial Highway Alexandria VA. Borrower must receive final site plan approval to subdivide into three recorded lots 2A, 3A, and 3B prior to closing. The Borrower purchased lot 2 for $30M on August 28, 2014 and lot 3 for $465M on July 23, 2014. They paid cash for lot 2 and borrowed $470M from Burke & Herbert Bank for the purchase of lot 3. The subject approval includes a $905M A&D closed end line of credit, a $740M revolving construction to fund up to 2 of the 3 units, of which no more than 2 can be speculative (including a model), and up to $100,000 in Letters of Credit to cover the development bond. The Borrowers plans to market the Radford model on lots 2A and 3A and Custis model on Lot 3B. These lots will be accessed through Mount Vernon Park Phase I, a 2 acre parcel in the Mount Vernon
Are you looking to buy a new home? If you're looking to buy a modular or manufactured home, we can help! Ida Grove Homes is Iowa's leading builder of modular and manufactured homes. Not only do we serve residents in the Ida Grove area, we also serve as far away as Sioux City. Whether you need a home in a rural neighborhood or urban district, we have homes to accommodate your lifestyle and design needs. Unlike traditional homes, our homes are not constructed on-site; they are built in a factory, then transported to the work site. Choose from one of our Wisconsin or Shult models.
You are required to make a small down payment and each monthly payment increases your ownership of the house.
IN CONSIDERATION OF THE COVENANTS and agreements contained in this Sales Agreement the parties to this Agreement agree as follows:
As such a landowner can decide the credit history and installment history of the potential inhabitant. This data can be interpreted into: