Smith began his career as a reverse mortgage loan officer in 2002, during a time when Financial Freedom dominated the industry, as he shared in an interview with HousingWire‘s Reverse Mortgage Daily.
Early on, Smith encountered a challenge when one of his client’s loan applications hit a roadblock due to a little-known regulation. An underwriter informed him that the Federal Housing Administration (FHA) did not approve loans for manufactured homes in condominium communities, despite both property types being eligible for financing.
Confused by this restriction, Smith took matters into his own hands. He discussed the issue with Margaret Burns, a key policy figure at the U.S. Department of Housing and Urban Development (HUD) at the time. Burns agreed with Smith’s concerns and worked to change the rule, a process that took two years to complete. In October 2008, Smith received confirmation that President George W. Bush was ready to sign off on the regulatory amendment.
This pivotal moment propelled Smith into the manufactured housing sector, particularly focusing on pre-HUD Code homes. These older units, built before June 1976, were often overlooked in loan eligibility, despite still being in use by millions of Americans.
Smith’s innovative approach involved building new manufactured homes and financing them through reverse mortgages. This strategy allowed homeowners to replace outdated units with modern, energy-efficient homes without the burden of upfront costs.
Over the years, Smith has facilitated around 90 to 100 of these transactions, ensuring that all parties involved receive their promised payments. Despite keeping this program relatively discreet, Smith is now considering sharing the process documentation as he approaches retirement, aiming to expand the initiative beyond California.
With a focus on manufactured homes and accessory dwelling units (ADUs), Smith’s program provides a viable housing solution for retirees struggling to cover living expenses. As communities become more open to alternative housing options, manufactured homes offer a faster, more affordable solution with fewer permitting requirements.