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Hedge Fund Dumps Shares of Skyline-Champion, plus Manufactured Housing Stock Updates

March 14th, 2019 No comments

CNNmone3.14.2019ManufacturedHomeStocksMarketsReportsMHProNewsThe proverbial crystal ball has never worked, so it would be inaccurate to say that its broken. But trend-lines, a little logic, and track records can go a long way to reading tea leaves that could provide useful clues that might impact companies and stocks.  Tonight’s feature is a report from Financial Headlines, much of which was off-the-mark, but some of it was worth noting.  On a mixed day for the broader markets, and with more losers than gainers among manufactured home tracked stocks, what Financial Headlines said about Skyline Champion – and didn’t say – will be our featured focus this evening.

 

If you’re new, already hooked on our new spotlight feature – or are ready to get the MH professional fever – our headline report is found further belowafter the newsmaker bullets and major indexes closing tickers.

 

The evolving Daily Business News market report sets the manufactured home industry’s stocks in the broader context of the overall markets.  Headlines – at home and abroad – often move the markets.  So, this is an example of “News through the lens of manufactured homes, and factory-built housing.” ©

Part of this unique evening feature provides headlines – from both sides of the left-right media divide – which saves busy readers time, while underscoring topics that may be moving investors, which in turn move the markets.

Readers say this is also a useful quick-review tool that saves researchers time in getting a handle of the manufactured housing industry, through the lens of publicly-traded stocks connected with the manufactured home industry.

This is an exclusive evening or nightly example of MH “Industry News, Tips and Views, Pros Can Use.” © It is fascinating to see just how similar, and different, these two lists of headlines can be.

Want to know more about the left-right media divide from third party research?  ICYMI – for those not familiar with the “Full Measure,” ‘left-center-right’ media chart, please click here.

 

CNNFoxNewsLeftRightMediaBiasDailyBusinessNewsMHproNEwsSharylAttkisson

MHProNews looks at issues from a wide variety of perspectives.

Select bullets from CNN Money…

  • A lofty goal for 2030
  • Coca-Cola wants to collect and recycle the equivalent of every bottle it sells
  • LIVE UPDATES Markets are in positive territory
  • Facebook says it’s resolved outage issues, denies attack
  • Why the Model Y will be Tesla’s most important car
  • GE warns of bleak 2019 but promises brighter future
  • The 737 Max crisis has wiped more than $25 billion off Boeing’s market value
  • American businesses are finally getting more productive
  • Huawei pleads not guilty to charges it violated US sanctions on Iran
  • Dick’s Sporting Goods removes guns and ammo from 125 stores
  • PERSPECTIVES Banks don’t want to work with marijuana companies. It’s time for that to change
  • A horrific school shooting was the last straw for the CEO of Dick’s Sporting Goods
  • Dollar General will open 975 stores this year
  • What wealthy parents do to get their kids into elite colleges (legally)
  • You have $100,000 to invest. Now what?
  • 30-year fixed rates just declined. See if you qualify
  • This artificial leaf wants to help fight climate change
  • Theranos was a Silicon Valley darling. Now former employees can’t find jobs
  • This Indian tech billionaire just gave $7.5 billion to charity
  • Verizon will soon offer 5G in select cities for $10 extra
  • Everything you need to know about 5G
  • Samsung unveiled its first ever 5G phone
  • PERSPECTIVES 5G will have an enormous impact on the world
  • Sprint sues AT&T, alleging it falsely brands 4G as 5G
  • Why space is becoming a dangerous place to do business
  • She turns Elon Musk’s bold space ideas into a business
  • Toyota wants to send an electric car to the moon
  • SpaceX Crew Dragon returns from historic test flight
  • Watch Crew Dragon land with a splash

Select Bullets from Fox Business

  • Lawsuits seek over $500B in damages over college admissions scandal
  • College admissions cheating scandal: What school alumni earn
  • Kaplan, Princeton Review, The College Board react to college admissions cheating scandal
  • College admissions scandal: There’s more we don’t know about, college consultant says
  • US Senate rebukes Trump over wall, but he vows veto
  • The 59-41 vote marks the second Senate rebuke of Trump in two days.
  • Gary Cohn on US-China trade talks: Trump is ‘desperate’ for resolution
  • NYC inching towards bankruptcy, economist warns
  • Homes are flying off the market in these five cities
  • Beto O’Rourke’s economic, business views
  • Connecticut high court: Gunmaker Remington may be sued for Sandy Hook shooting
  • WATCH: Is the Boeing 737 Max a cost-saving failure?
  • Google directly benefiting Chinese military, says top US general
  • Eli Manning to become NFL’s highest-earning player ever, despite recent struggles
  • SEC Chairman Clayton on bitcoin: Buyer beware
  • BlackBerry morphs into billion-dollar AI cyber company
  • Tesla Model Y: What we know so far
  • How much the average American spends per day
  • Toyota boosts US investments to $13B by 2021
  • 4 reasons you should work for a small business
  • Weekly jobless claims increase more than expected
  • SoftBank, Toyota in talks to invest $1B in Uber’s self-driving unit: Report
  • The investment would give the unit a value of $5 billion to $10 billion.
  • 7 online and mobile banking safety tips

Today’s markets and stocks, at the closing bell…

9MarketIndicatorsYahooFinance3.14.2019DailyBusinessNeawsManufacturedHousingIndustryStocksMarketsReportsDataMHProNews

 

Today’s Big Movers

For all the scores and highlights on tracked manufactured home connected stocks today, see thBloomberg graphic, posted below.

Today’s MH Market Spotlight Report –

HedgeFundDumpsSharesSkylineChampionPlusManufacturedHousingStockUpdatesDailyBusinessNewsMHproNews

Some of the online ‘market reports’ – for whatever reasons – like the ones below are a mix of what is arguably junk mixed with useable nuggets of information.

They are mostly of necessity, backward looking.  So what happened in Q4, while interesting, may or may not reflect what happened today or more recently.

With those ‘stating the obvious’ points noted, this evening we’ll look at two serious moves, in the wrong direction for Skyline-Champion (NYSE:SKY).

First, the major pull quotes, and then some commentary.

LivesAdviceSKYchampionHOlerCenterbridgePartnersLPTrimmedPositionby29.23MillionShareValuesDeclined

Lives Centerbridge Partners Lp decreased its stake in Skyline Champion Corporation (SKY) by 31.63% based on its latest 2018Q4 regulatory filing with the SEC. Centerbridge Partners Lp sold 2.09 million shares as the company’s stock declined 5.55% while stock markets rallied. The hedge fund held 4.51M shares of the homebuilding company at the end of 2018Q4, valued at $66.30 million, down from 6.60 million at the end of the previous reported quarter. Centerbridge Partners Lp who had been investing in Skyline Champion Corporation for a number of months, seems to be less bullish one the $1.13 billion market cap company. The stock decreased 2.78% or $0.57 during the last trading session, reaching $19.95. About 463,122 shares traded. Skyline Champion Corporation (NYSEMKT:SKY) has risen 0.46% since March 14, 2018 and is uptrending. It has underperformed by 3.91% the S&P500. 

SankatyAdvisorsStatkeInSkylineChampionDecreased$28.1MillionShareValuesDeclinedDailyBusinessNewsMHProNews

Sankaty Advisors Llc decreased its stake in Skyline Champion Corporation (SKY) by 29.6% based on its latest 2018Q4 regulatory filing with the SEC. Sankaty Advisors Llc sold 2.01M shares as the company’s stock declined 5.55% while stock markets rallied. The hedge fund held 4.79M shares of the homebuilding company at the end of 2018Q4, valued at $70.32M, down from 6.80M at the end of the previous reported quarter. Sankaty Advisors Llc who had been investing in Skyline Champion Corporation for a number of months, seems to be less bullish one the $1.16B market cap company.

The stock decreased 0.05% or $0.01 during the last trading session, reaching $20.52. About 292,223 shares traded. Skyline Champion Corporation (NYSEMKT:SKY) has risen 0.46% since March 13, 2018 and is uptrending.

It has underperformed by 3.91% the S&P500.

Some Historical SKY News:

02/05/2018 – Wells Capital Management Inc. Exits Position in Skyline;

 

SkylineManufacturedHousingIndustryDailyBusinessNewsMHProNews2019-03-14_1703_001

 

For balance, here is a broader sampling of headlines from today about SKY.

 

GoogleNewsSkylineChampion2019-03-14_1719DailyBusinessNewsMHProNews

2018-12-10_0947SkylineChampionLogoIRComplementaryManufacturingFootprintUSCanadaRetailLogisticsDailyBusinessNewsMHProNews

12.2018.

With that backdrop, what this longtime industry observer sees – and we have interest, insights, but no direct dog in the equities market hunt – is that many investors seem to have only a modest thought about how the controversy at Cavco could potentially spill over to some of the larger players at the Manufactured Housing Institute (MHI).

Antitrust interest in the U.S. is heating up, as several of our reports have tracked, especially over the last two years. It’s a thing in Europe too, where some observers say its been a stronger movement, and that the U.S. is playing catch up.

MHI puts out an antitrust statement at their meetings. While there is evidence and allegations from several mainstream sources, including a ground breaking report linked below, none of them have yet risen to the status of a formal case being announced.  Will such an announcement by DoJ, the FTC, or plaintiffs attorneys occur in 2019?  2020?  2021?

Time will tell, but linked below via the text image box shown are purported Exhibits 1, 2, and 3.

 

Bridging Gap$, Affordable Housing Solution Yields Higher Pay, More Wealth, But Corrupt, Rigged Billionaire’s Moat is Barrier

 

Perhaps more important to several MHI members, is once the shoe drops on allegations of antitrust activity among Berkshire Hathaway owned brands – and we believe that it is likely to occur, for reasons that will be covered in a future report that builds on the one above – the question then becomes, is there spillover effect to other larger players in the industry?  Recall that the SEC declined to confirm or deny that they are looking into antitrust concerns with respect to Cavco Industries, and their legal woes connected to Joe Stegmayer, former Cavco President but still MHI Chairman.

JoeStegmayerCavcoCVCOMIChairBrianMontgomeryHUDFHASameLandyUMHPresidentDailyBusinessNewsMHPronews

 

MHProNews has obtained some communications as news tips that reflect statements by Stegmayer that some may say makes his statements look more-weighty than his now reduced title at Cavco ought to reflect. Stegmayer’s historic ties to Clayton Homes are clear.

What may be a problem for some tracked stocks, could at the same time benefit others.

But perhaps the most heady consideration is MHI’s ongoing pattern of posturing efforts for growth, when they are doing – or not doing – common sense steps that arguably help some brands, while harming others.  See the related reports, for more details.

ManufacturedHomesAsPercentageofSinglefamilyHousingStartsDailyBusinessNewsMHProNewsSkylineChampionSKY780x943

The answer some in the industry give to the last question n the red box above is market rigging. Those allegations routinely involve MHI in some form or fashion. If so, that’s a potential risk for spillover effects beyond the company(ies) most commonly mentioned.

 

Bottom line for tonight.  The industry is under-performing. SKY’s own graphic above says as much. The national association that claims to represent ‘all segments of factory-built housing’ has been rebuked by both an independent producers association, a newly emerging community association, and several of their own members and staff, past and present.

The hubris at MHI is breathtaking, but they apparently feel confident that they won’t get ‘caught’ with a hand in the cookie jar.  The better question is, hasn’t enough information already emerged to reflect that their hands have titled the scales already in a ways that have rigged the markets? Doesn’t that potentially impact the values of MHI member stocks?

Those are the questions that shareholders and other plaintiffs’ attorneys and corporate suits are/will be sorting through.  See the related reports, just below.

Related Reports:

Tim Williams, PBS News’ Bad Bargain, Manufactured Housing Institute, Buffett’s Mirror, and Clayton’s Costume

 

Warren Kicked Hornet’s Nest – How Move May Connect With MH, Renters, Professionals

Warren Buffett’s Moat, Understanding Manufactured Housing Requires Grasping Strategic Economic Moats

Investors, Professionals, Planners, Advocates – Examining Affordable Manufactured Home Industry Market Potential

DTS Manufactured Home Lending Committee Member Says MHI in “Unholy Alliance” to Divert Needed GSE Support Away from Manufactured Housing

Warren Buffet’s Quotable Quotes on Business, Institutions, Behavior, and News Reporting

HUD, Census Bureau Releases Mainstream January 2019 Housing Starts Data, How Does Manufactured Housing Compare?

Anti-Monopolistic or “Antitrust” Action Heating Up in Washington, D.C., What It Could Foreshadow for MHVille

MHI’s Growth Agenda? Rick Robinson, JD, SVP Manufactured Housing Institute, Preemption Evidence, Writ of Mandamus, and Addressing HUD Code Manufactured Home Shipment Woes

Bloomberg Closing Ticker for MHProNews…

NOTE: The chart below includes the Canadian stock, ECN, which purchased Triad Financial Services.

NOTE: The chart below covers a number of stocks NOT reflected in the Yahoo MHCV, shown above.

NOTE: Drew changed its name and trading symbol at the end of 2016 to Lippert (LCII).

3.14.2019DailyBusinessNewsManufacturedHousingConnectedMarketReportsBloombergMHProNews

Berkshire Hathaway is the parent company to Clayton Homes21st Mortgage, Vanderbilt Mortgage and other factory built housing industry suppliers.

LCI Industries, Patrick, UFPI and LP all supply manufactured housing.

AMG, CG and TAVFX have investments in manufactured housing related businesses.

Your link to industry praise for our coverage, is found here.

For the examples of our kudos linked above…plus well over 1,000 positive, public comments, we say – “Thank You for your vote of confidence.”

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(Image credits and information are as shown above, and when provided by third parties, are shared under fair use guidelines.)

Submitted by Soheyla Kovach to the Daily Business News for MHProNews.com.

To submit a news tip, please click here: iReportMHNewsTips@MHMSM.com


Court Ruling on Sierra Club vs Rick Perry DOE on Manufactured Home Energy Regulations, Constitutional Law Professor, MHARR Weigh In

March 14th, 2019 No comments

 

CourtRulingVsSierraClubRickPerryDOEManufacturedHomeEnergyRegulationsConstutionalLawProfessorMHARRWeighIn

The potential impact of tougher energy standards on manufactured housing pricing, and therefor prospective buyers, could be $6,000 per unit or more.  The repayment time frame, per third parties, could take more than a decade. The average American moves about once every 7 years.

 

The National Association of Home Builders (NAHB) – not the HUD Code industry’s first line of promotion or defense – produced a priced-out study that reveals that hundreds of thousands of potential buyers will no longer qualify for the homes based upon a $1000 price increase.  This increase could be 6 to 10 times as high, and manufactured housing is still operating at historically low levels.

So, it could take longer to recoup the cost than the typical American would live in a new manufactured home built to the standards that the Sierra Club and others want to promote.

These are among the reasons why manufactured housing industry pros should be keenly interested in this issue.

With that tee-up, the Constitutional Law Professor blog and the Manufactured Housing Association for Regulatory Reform (MHARR) have both weighed in on a court ruling yesterday on the Sierra Club’s lawsuit against Secretary Rick Perry and the Department of Energy (DOE) regarding manufactured housing regulations.

The Arlington, VA based Manufactured Housing Institute (MHI) has not yet weighed in on the topic.  It will be recalled that MHI for some time promoted new standards, until pressure from MHARR, Georgetown University and the Small Business Administration – besides MHProNews – finally caused MHI to flip flop.

The MHI switcheroo was attempted via their amen-corner, Orwellian memory hole method, so industry independents should watch this with caution. MHARR and MHProNews didn’t bite on the MHI purported attempt to change history, as one of those prior MHProNews reports is linked below.

 

AnotherMHIFlipFlopManufacturedHousingInstituteMHI-DOELogoManufacturedHomeEnergyRuleDailyBusinessNewsReportsReseardhDataMHProNews

Image credits are as shown, and when provided by third parties, are shown under fair use guidelines. Collage credit, MHProNews.com.

 

Steven D. Schwinn, John Marshall Law School on the Constitutional Law Professor blog said that “The ruling means that Sierra Club’s case can go forward. And given the court’s conclusions, and the law, it seems likely that Sierra Club will win. But that doesn’t mean that we’ll see regs any time soon.” That is true, but it doesn’t mean that a new bullet doesn’t have to be dodged.

 

Here’s what MHARR told their members today.

 

 

MARCH 14, 2019

 

 

TO:                  MHARR BOARD OF DIRECTORS

                        MHARR TECHNICAL REVIEW GROUP (TRG)

                        MHARR STATE AFFILIATES

 

FROM: MHARR

 

RE:                  COURT RULES THAT SIERRA CLUB HAS STANDING TO SUE

                        DOE OVER MANUFACTURED HOUSING ENERGY STANDARDS

In a development that was not unexpected, the U.S. District Court for the District of Columbia has denied a motion by the U.S. Department of Energy (DOE) to dismiss a lawsuit filed by the Sierra Club, seeking to compel DOE to issue manufactured housing energy standards under section 413 of the Energy Independence and Security Act of 2007 (EISA).

In its Motion to Dismiss, DOE maintained that Sierra Club lacked either organizational or associational standing to sue on behalf of members who allegedly have been “injured” as a result of delays in the establishment of DOE energy conservation standards for manufactured homes. The court’s denial of that Motion – under legal standards that tend to favor plaintiffs seeking to sue – is not a ruling on the substantive merits of the case, but rather, simply means that the case can go forward with Sierra Club acting as a representative for its members.

MHARR will carefully monitor this litigation as it progresses, insofar as the DOE “negotiated rulemaking” process, which led to both DOE’s now withdrawn 2016 proposed rule and, more importantly, currently pending proposals published by DOE in a 2018 Notice of Data Availability (NODA), was inherently and fundamentally tainted and illegitimate, as MHARR has extensively detailed in comments filed with DOE. As a result, that “negotiated rulemaking” process does not provide a valid, lawful or permissible basis for any rulemaking, and DOE, as MHARR has consistently maintained, must go back to the drawing board and initiate a new, legitimate and untainted rulemaking process to address any such manufactured housing standards.

This entire subject will be addressed in greater detail at MHARR’s upcoming Board of Directors meeting.

 

cc:  Other Interested HUD Code Industry Members

 

The Manufactured Housing Association for Regulatory Reform is a Washington, D.C.-based national trade association representing the views and interests of independent producers of federally-regulated manufactured housing.

 

The full court ruling is found at this link here as a download.  See the related reports, further below the byline, offers, and notices for more on this issue.

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That’s this afternoon’s manufactured home “Industry News, Tips, and Views Pros Can Use,” © where “We Provide, You Decide” © ## (News, analysis, commentary.)

 

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SoheylaKovachDailyBusinessNewsMHProNewsMHLivingNewsSubmitted by Soheyla Kovach to the Daily Business News for MHProNews.com. Soheyla is a managing member of LifeStyle Factory Homes, LLC, the parent company to MHProNews, and MHLivingNews.com.

 

 

Related Reports:

You can click on the image/text boxes to learn more about that topic.

Will Costs Rise $6,000 per Home? DOE Energy Rule on Manufactured Housing Revived, MHARR Rattles Legal Saber

NAHB Report – High Cost of Regulations Impact Housing – and Manufactured Housing

MHARR vs. MHI on DOE Energy Rule, Pushback Pay$ Off?

MHARR to DOE: Only Three Choices for MH Energy Rule – Abandon, Complete Start-Over, Or Face Legal Action

 

HUD Whitewash on DOE Rule Costs, More Washington Manufactured Housing Updates

 

 

 

 

 

 

To submit a news tip, please click here: iReportMHNewsTips@MHMSM.com


Tim Williams, PBS News’ Bad Bargain, Manufactured Housing Institute, Buffett’s Mirror, and Clayton’s Costume

March 14th, 2019 No comments

 

TimWilliams21stPhotoPBSnewsBadBargainMobileManufacturedHomesChasingAmericanDreamCarlaBurrMHActionNMHOAMHIClaytonHomesWarrenBuffett

Photo of Tim Williams, credit, MHProNews. Stills from PBS News Hour website, video. This is a fact-check and analysis of that PBS report, images shown under fair use guidelines for media.

If you are willing to abandon your principles for convenience, or social acceptability, they are not your principles, they are you costume.”  

– Joe Concha, the Hill.

 

 

In the business world, the rearview mirror is always clearer than the windshield.”

– Warren Buffett per BrainyQuote.

 

 

What we learn from history is that people don’t learn from history.”

– Warren Buffett, according to QuoteFancy.

 

If Warren Buffett believes in something, and it meets his inverting criteria, then one can be assured that Berkshire Hathaway has the financial capacity to make the acquisition or investment.  He’s said so himself.

When Berkshire Chairman Buffett says something, it may be literally or proverbially accurate, but rules have their exceptions.

Be it Buffett, or the President and CEO of Berkshire owned 21st Mortgage Corp, Tim Williams, they may not have thought that their words would later be scrutinized against their own stated standards. The reason? It is found in Buffett’s own quote about history, cited above.  They arguably may not expect the history of their words compared to their behavior to be matched up, years later.

It would be more accurate if Buffett said that in general, many don’t learn the lessons of history.  But nuance aside, one can now look back at the words of Buffett, 21st’s Tim Williams, or MHI and see how they measure up to what has transpired since that time.

Or to put it as the Hill’s Joe Concha did, are these words sincerely meant, or the words a costume?

On Jan 2, 2016, PBS News said about our manufactured home industry that “Typically older and poorer than traditional homeowners, manufactured homeowners often face serious, unique financial difficulties that make it a bad bargain for some low-income Americans.”

That narrative fits the talking points of MHAction, which has captured serious media attention. At the time that PBS News did the video posted below, Carla Burr was associated with NMHOA, but more recently, she has appeared on the MHAction website.  The PBS video doesn’t specifically mention Clayton Homes, 21st Mortgage, or Vanderbilt Mortgage and Finance (VMF). But much of what they describe are in fact pointed directly at those Knoxville, TX metro based brands owned by Omaha, NE based Berkshire Hathaway.

 

PBS Asked…

Among those interviewed for the video by PBS posted below was Julia Gordon, National Community Stabilization Trust, who told PBS’ Stephen Fee the following.

Often you have very few financing options. There are only a handful of lenders who work in this space, and because there’s a lot of vertical integration in the industry. Often when you purchase the home, the manufacturer of the home is going to refer you to a lender.”

As noted, that phrasing is a thinly veiled reference to Berkshire owned brands. One doesn’t know what was edited out for her or other’s commentary. But if Gordon been quoted in this video speaking directly about Clayton Homes, 21st or VMF, is there much doubt that Clayton or perhaps even MHI might have weighed in? After all, when Prosperity Now’s Doug Ryan refereed to the monopoly of the Berkshire brands in manufactured housing, MHI rapidly dispatched Lesli Gooch, EVP to respond in digital print.

So MHI and Clayton respond when they want to, but don’t at other times.

 

PBS NewsHour’s ProblematicBad BargainVideo

 

 

ICYMI, the prior report on PBS and NPR is relevant to this fact-check and review.  You can click on the text-image box later for more related details and insights.

 

PBS & NPR Reporting on Manufactured Housing News, Pulling Back the Veil

 

To be clear, Stephen Fee’s PBS report on the misnamed “Bad Bargain” is a mixed bag of accurate and problematic information. It very much fits what Brad Lovin previously told MHProNews about mainstream media reports.

 

PublishingHandPickedInformationCanBeWorsefortheImpressionItMakesOnManufacturedHomesandOurIndustryThanStatingEntirelyFalseInfo-BradLovinNCMHA

 

So, the question is why didn’t MHI affirm what was accurate, and correct what was not?

Why wasn’t

  • terminology
  • comparisons between apartments, land-lease communities, and conventional housing,
  • interest rates,
  • or a range of issues that could easily be debunked or corrected, not addressed publicly by MHI at all?

MHLivingNews and MHProNews put those concerns to then MHI Chairman Tim Williams. Here is every word that Williams said in his emailed response.

 

 

TimWilliams21stMortgageCEOMHProNews

Tim Williams, photo credit, MHProNews.com

Many of our friends in the industry, including my friend Tony at MHLivingNews, have questioned why MHI hasnt made a strong rebuttal response to the PBS story.

There are good arguments that we should respond to every story, refute every statistic, and make our case to the public.  Certainly we can make the case that the PBS story was not fair and balanced reporting.  Just one example is the interview with Dick Ernst.  Dick spent several hours with PBS representing our industry as an official spokesman.  The reporter had about one hour of taped interview with Dick and used only 45 seconds of that interview.  

We can also make a case to counter the segment addressing manufactured home site rent increase.  No one from MHI was asked to comment on the segment and the allegation that consumers become trapped in their homes.  The reporter did not make any effort to understand the cost of operating a manufactured home community and why those costs must be passed on to the tenants, even though MHI provided ample evidence and information to assist the reporter in his research.  

The reporter did not attempt to compare site rent increases to apartment rent increases.  Just last week, the Wall Street Journal ran a Section C front page story about apartment rent increases.  The annual rate of rent increases has averaged 3.93% over the last 4 years.  This is a greater rate of increase than cited for lot rent in the PBS story where leader/actor Ms. Burr was complaining about her site rent increasing just over 3% per year.  

So why not respond with our good facts?

The PBS story ran on a date where everyone was busy with the holidays and very few people saw the story.  The last thing we want to do is bring more attention to a negative story about our industry.

The other problem with responding is the selective nature of what the press will print when you know they have an agenda.  If we submit the above paragraph where I acknowledge Ms. Burrs site rent increases on average more than 3% per year, what do you think PBS will print?  The risk is that they leave out the comparison to apartment rents that increase nearly 4% per year and print our acknowledgment that manufactured housing community site rents increase over 3% per year as they repeat their assertion that manufactured homes depreciate and residents become trapped in their homes.  

I understand the argument that we must work harder to tell our story and emphasize the advantages of manufactured homes.  We have a good product and a good story to tell.  We dont need to tell it to people with an agenda who will only tell half the story.  MHI has been focused on communicating positive messages about manufactured housings benefit. We are targeting media sources that will give us a fair hearing and policymakers in Washington.  This effort to drown out the negative media attention has been steadily increasing and weTimWilliamsPhoto21stMortgageCorpLogoPresidentCEOManufacturedHousingInstituteLogoMHProNews are pleased to have so many members willing to highlight the positive message of manufactured housing in this effort. We believe this is the right approach for the industry. Make no mistake, MHI issued a strong response to the PBS story by going straight to its producers.  This targeted approach has yielded the opportunity for MHI to receive fair airtime on that program at a future date, and we are currently exploring this opportunity.

Additionally, MHI President/CEO Dick Jennison is in the process of hiring a seasoned media relations professional.  This position was approved by the MHI Board for the position to begin in March 2016, but at the request of Dick Jennison, the MHI executive committee approved bring on this position as soon as the right person can be hired.  

It is the intent of MHI to broaden its public relations/communications focus to include positive consumer stories including testimonials on why people choose to live in and how they benefit from manufactured homes and living in our communities.” ##

 

So wrote Tim Williams, then chairman of the Manufactured Housing Institute (MHI), and still president and CEO of the Berkshire owned 21st Mortgage.  That was published on January 15, 2016 at this link here. It is one of several ‘on the record’ gifts from Williams to the industry at large via MHProNews.

Gift? How so?

Because using Buffett’s principle of the rear view mirror bringing clarity, it helps bring matters into clearer focus for thousands of manufactured home industry professionals and investors.  It will also raise vexing and timely legal, ethical and other questions, as you will soon see.

 

InBusinessWorldRearViewMirroIsAlwaysClearerThantheWindshieldWarrenBuffettMHProNews

 

Now, since that statement by Williams was made and first published on the Industry Voices blog of MHProNews, MHI did indeed hire a public relations professional. Patti Boerger came on board at MHI, worked for a time, and has since gone. MHI has since William’s letter-to-the-editor revamped their website.

PBS’ purported hit-piece is still easily found online.  MHProNews and MHLivingNews responses to it are still visible online.  But where is a response to be found online by MHI to a report that millions were exposed to by PBS and their many affiliates?

 

PBSMissesMarkinManufacturedHousingStoryBadBargainMobileHomeOwnersFinancialStruggleDailyBusinessNewsMHProNews

 

According to the MHI search tool this morning before dawn, it isn’t to be found on their own website.

 

PBSNewsBadBargainManufacturedHousingInstituteLogoNoResultCarlaBurrMHActionMHProNews2019-03-14_1033

Williams was factually accurate about much that he said in his guest column. But here are some of the things that weren’t said in response to the PBS News video was this.

 

  • The Preserving Access to Manufactured Housing Act that was part of the background debate at the time for the PBS report was arguably primarily for the benefit of Berkshire Hathaway lenders.
  • The MLO rule compromise was already on the table, per sources at MHI to MHProNews, and confirmed by then NMHOA attorney and executive director, Isbhel Dickens. That part needed no legislation, the Consumer Financial Protection Bureau (CFPB) – per sources ‘on both sides’ of the issue would have allowed that change by negotiated agreement between consumer groups and MHI.  It was MHI that said no, because they didn’t get the points and fees changes that 21st and VMF wanted.
  • There was in hindsight a clearly evidenced conflict of interest in the MHI Chairman promotion of a bill by MHI that benefited mainly his company.
  • MHI’s predecessor to Lesli Gooch, Ph.D., in the government relations role – Jason Boehlert, said that Preserving Access wasn’t going to pass years before, yet MHI kept spending the money at the direction of Knoxville and the political capital up on Capitol Hill.
  • In a real sense, whether the bill passed or not, Knoxville brands owned by Omaha based Berkshire benefited. How so? Because artificial headwinds are better withstood by large companies than smaller ones.  During the time that Preserving Access was working its way to a dead end in Washington, D.C. the Berkshire brands in manufactured housing were growing in market share, while the number of independents in the industry’s retail side continued to shrink.
  • The impact was not only on street retailers, but also on independent communities too. People moving into a manufactured home community – a.k.a. the typically misnamed ‘mobile home park’ – did so because they knew it was a good option for manufactured home placement. The PBS video placed that matter in doubt for those who viewed and/or read their report.
  • There was no discernable MHI or Knoxville retort on line, save the letter spurred by MHProNews’ question to Williams, which sparked the letter posted above.

 

Staged Managed?

All the world is a stage, and the people are but players in it.” – William Shakespeare, from “As You Like It,” Act II, Scene VII, according to Poets.org.

 

You can fool all the people some of the time, and some of the people all the time, but you cannot fool all the people all the time.” – Abraham Lincoln, per BrainyQuotes.

 

Warren [Buffett] is a genius.’  – Kevin Clayton, President and CEO of Clayton Homes, from video posted at this link here.

 

It is difficult for most people to imagine a world where a company can benefit, even if they seemingly don’t get what they want.  But if a system is rigged enough, then that may be possible.  How?  First, ponder once more the Warren Buffett quoted cited here in the report linked below from 3.10.2019.

 

Warren Buffet’s Quotable Quotes on Business, Institutions, Behavior, and News Reporting

 

Then keep in mind that this is the same Buffett that said, per the investor site, the Motley Fool: “One of the most widely quoted pearls of wisdom of legendary investor Warren Buffett is: “Rule No. 1: Never lose money. Rule No. 2: Don’t forget rule No. 1”. … So, when Buffett talks of never losing money, he’s not referring to temporary “paper” declines in stock values. He must be referring to crystallised cash losses.”

That’s a keen insight that manufactured housing investors, professionals, advocates, and public officials must grasp.  Buffett’s Berkshire can lose “…even a lot of money…” on paper. But if their strategic and economic Moat is growing, have they lost anything at all? Haven’t the Berkshire brands in Knoxville rather gained while they might appear to be losing?

Omaha will defend its own reputation, and there are examples of Knoxville and Arlington defending the Berkshire brands too.  But defending the reputation of the manufactured home industry may not be a short or even a medium term priority.  Any headwinds is just one more shark in the water of Buffett’s moat.

 

GoodBusinessIsLikeAStrongCastleWithaDeepMoatAroundItSharksIntheMoatIwantItUntouchableWarrenBuffettQuoteDailyBusinessNewsMHProNews

Sometimes the truth is hiding in plain sight. Follow the facts, evidence, and the money.

 

But what PBS entirely failed to address in their misnamed ‘bad bargain’ report is

  • the role of the Government Sponsored Enterprises (GSEs) in the lending issue.
  • They also failed to get it right on appreciation or depreciation about manufactured housing.  Once more, it was primarily MHProNews and MHLivingNews that took up those mantles in the HUD Code manufactured home industry’s trade media. On the association side, it was primarily the Manufactured Housing Association for Regulatory Reform (MHARR) that has pushed the GSEs to do chattel lending on all manufactured homes, not just on the Clayton pushed scheme – per non-MHARR, MHI member sources to MHProNews – for a new class of homes that makes no logical sense on the surface.
  • Why create, says non-MHARR MHI member producers, a new class of homes to get GSE lending, when HUD Code producers already made modular homes?

Or as one outraged MHI member producer put it – in standing up for ‘standard’ HUD Code manufactured housing production, “What are we, chopped liver?”

 

“What Are We, Chopped Liver?” MHI Member December 2018 Reactions

 

By the sub-heading of ‘stage managed,’ that is not to imply that Tim Williams, MHI or anyone working for Berkshire knew what was going to be produced by PBS.  They likely did not know before others did.

But what was discernable – based upon PBS’ track record – is how the report might be framed.  And even ignoring that lesson of history, Knoxville and Arlington could easily have mounted a defense via others in media.

Because what Williams also didn’t mention is that Berkshire Hathaway owned dozens of newspapers at that time, and now too.

 

Due Credit, Warren Buffett, Media, and Manufactured Housing’s Historic Achievement

 

Never give up the con,” was not first said by Dinesh D’Souza, nor was it applied by him to the Omaha-Knoxville-Arlington axis.  But it was applied by D’Souza, who said: “Make the pitchIf caught, always deny, never give up the con.”

 

Here are the facts that have not yet been denied by MHI’s attorneys, others working for that Arlington, VA based trade group, or those working for Berkshire brands based in metro Knoxville, TN.

 

  • The Duty to Serve (DTS) lending mandated by the Housing and Economic Recovery Act (HERA) 2008 to support manufactured housing has never been robustly implemented for chattel or other lending for manufactured homes.
  • Industry professionals, including consultants, working for the GSEs have essentially slowed their acceptance of manufactured housing for lending on the industry’s most affordable homes.
  • The interest rates that PBS’ report railed against would arguably be lower in manufactured housing, if the GSEs, FHA, VA, and USDA lending were all being more robustly used in the industry.
  • The GSEs are co-sponsoring MHI events, a clear conflict of interest with their DTS manufactured housing.
  • While MHI claims to be working for more lending by the GSEs, the evidence proves the opposite is true. Who does that lack of GSE support financially benefit?  Aren’t Berkshire owned lenders with higher rate loans at or near the top of that list?
  • The recent letter that MHI signed onto was actually contrary to the claims they are making to their own members. See the recent report, linked here and below.

 

MHProNews publicly invited MHI, voices in Knoxville representing the Berkshire owned brands, the GSEs, or their attorney(s) to respond to this vexing claims and concerns.  Their response? Silence.  That’s their 5th amendment right.  But if they had a good explanation, wouldn’t they give it?

D’Souza’s point about ‘never give up the con’ is akin to the lessons learned from Sharyl Attkisson, or Marty Lavin, JD.

SoTheAssociationMHIIsNotThereFortheIndustryUnlesstheinterestsoftheBigBoysJointheIndustry'sMartyLavinMHIAwardWinnerQuoteMHProNews

MHProNews looks at the facts, considers the sources, and follows the evidence. MHI earlier last year, and for years before, MHI routinely replied promptly to all inquiries. But since we’ve spotlighted the problems and concerns, they’ve gone silent. Why? If the facts are on their side, why not make offer a cogent explanation?

 

Tim Williams, Dick Jennison, and Friendship

Tim Williams referred in his letter to Tony Kovach as a “friend.” Richard ‘Dick’ Jennison said on stage and on camera, ‘my good, dear friend, L.A. ‘Tony’ Kovach with MHProNews.comgreat publication.” Here are some of the phrases used by the Urban Dictionary to define the term “friend.”

A friend is honest and makes you want to be honest, too…A friend is someone who tells you if you’re being stupid,  but who doesn’t make you feel stupid…A friend is someone for whom you’re willing to change your opinions…A friend is a partner, not a leader or a follower.”

Using Urban Dictionary that definition, MHProNews is the friend of those who want to see the manufactured home industry honorably achieve its great potential. There rest are the details and commentary needed to tell the industry where its greatest threats come from, based on the facts, evidence, and the logic of the money trail.

Who benefits from the status quo and the trends of recent years? If one looks at their growing market share, a few larger firms that are often aligned with MHI or a Berkshire brand.  But who is harmed? Arguably, the bulk of the rest of the industry.

MHI and the Clayton affiliated firms have in deed made efforts for years that ostensibly aimed at growth. They have the advertorials and videos to prove it.

But what have your so-called industry friends in the Omaha-Knoxville-Arlington axis and their allies have yet to do is routinely and robustly correct ever fact error that arises.

  • What is that MHI PR person supposed to be doing?
  • Where is MHI or Knoxville brands routine and robust defense of the industry? Or even on MHI’s own website?
  • Instead, even on Clayton’s own website, manufactured homes are in places called ‘mobile homes.’

Every news story, good, bad, or meh is a potential opportunity for the savvy manufactured housing professional. MHI praised Tony Kovach in writing for says my so, but did not do so themselves.

 

AnnParmanVPManufacturedHousingInstituteMHILogoLATonyKovachMobileManufacturedHomeLivingNewsMHProNews800

MHI can’t claim to be ignorant about the need to respond. Tim Williams understood it, and MHI’s education director praised Tony Kovach for teaching it too. So why doesn’t MHI practice what they know could help the industry grow again?

 

Is posturing MHI’s or Clayton costume? Is it their “Illusion of Motion?”

A traditional job of journalists is to hold the powerful to account for their behavior.  Too few in MHVille are doing so, but MHProNews – by doing fact checks and analysis like this – is providing the foundation for the recovery of the industry. It is the act of true friendship.

 

FollowThe MoneyPayMoreAttentionToWhatPeopleDothanwhatTheySaySpySea72MartyLavinYachtManufacturedHousingINdustryProMHProNews

Ask yourself. Do these Marty Lavin dictums apply in this case?

 

For more on those and related reasons why manufactured housing could be doing better, but is not, see the related reports, below the bylines, emailed news offer, and notices.  That’s this morning’s manufactured home “Industry News, Tips, and Views Pros Can Use,” © where “We Provide, You Decide” © ## (News, analysis, commentary.)

 

ManufacturedHousingProNewsMHProNewsConfidentialTipsDocumentsNews

To report a news tip, click the image above or send an email to iReportMHNewsTips@mhmsm.com – To help us spot your message in our volume of email, please put the words NEWS TIP in the subject line.

NOTICE: You can get our ‘read-hot’ industry-leading emailed headline news updates, at this link here. You can join the scores who follow us on Twitter at this link. Connect on LinkedIn here.

NOTICE 2: Readers have periodically reported that they are getting a better experience when reading MHProNews on the Microsoft Edge, or Apple Safari browser than with Google’s Chrome browser. Chrome reportedly manipulates the content of a page more than the other two browsers do.

(Related Reports are further below. Third-party images and content are provided under fair use guidelines.)

1) To sign up in seconds for our MH Industry leading emailed news updates, click here.

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To see a sample of our emailed news update, click here. To sign up for the factory-built home industry’s #1 headline news, click here or the graphic above.

2) To pro-vide a News Tips and/or Commentary, click the link to the left. Please note if comments are on-or-off the record, thank you.

3) Marketing, Web, Video, Consulting, Recruiting and Training Re-sources

SoheylaKovachDailyBusinessNewsMHProNewsMHLivingNewsSubmitted by Soheyla Kovach to the Daily Business News for MHProNews.com. Soheyla is a managing member of LifeStyle Factory Homes, LLC, the parent company to MHProNews, and MHLivingNews.com.

 

 

Related Reports:

You can click on the image/text boxes to learn more about that topic.

Minnie Driver, Millionaires, and Billionaires – Debunking “Housing for the Poor” Image of Manufactured Housing

 

About Responding to PBS Newshours ‘Bad Bargain’ report by Stephen Fee

 

Positive, Uplifting Third-Party Reports Favor Modern Manufactured Housing, So What’s Going Wrong?

DTS Manufactured Home Lending Committee Member Says MHI in “Unholy Alliance” to Divert Needed GSE Support Away from Manufactured Housing

Drilling Down on State Manufactured Housing Shipment Data, Shocking Revelations, Warning Signs

MHI’s Growth Agenda? Rick Robinson, JD, SVP Manufactured Housing Institute, Preemption Evidence, Writ of Mandamus, and Addressing HUD Code Manufactured Home Shipment Woes

Warren Buffet’s Quotable Quotes on Business, Institutions, Behavior, and News Reporting

 

Conquest Capitalism – Thoughts of Chairman Warren Buffett – Billionaires Campaign to Control Trillion Dollar Affordable Housing Market

Warren Buffett’s Moat, Understanding Manufactured Housing Requires Grasping Strategic Economic Moats

“Tug of War” – Manufactured Home Community Legislation – “Vicious Cycle Goes On,” Impacting Industry, Home Owners, and Potential Buyers

 

HUD Code Manufactured Home Production Decline Persists – Time For Action Not Excuses

“The Illusion of Motion Versus Real-World Challenges”

 

 

 

 

 

 

 

 

To submit a news tip, please click here: iReportMHNewsTips@MHMSM.com


Minnie Driver, Millionaires, and Billionaires – Debunking “Housing for the Poor” Image of Manufactured Housing

March 13th, 2019 No comments

MinnieDriverMillionairesBillionairesDebunkingHousingforthePoorImageofManufacturedHousingDailyBusinessNewsMHProNews

Sorry, but there must be serious changes made at the post-production ‘efforts’ by the Manufactured Housing Institute (MHI) to ‘promote’ manufactured housing. One of them is how the Arlington, VA based trade group presents ‘facts’ about the residents our industry seeks and serves.

 

As an article earlier today reflected what the market potential is for manufactured homes.  Properly understood, it is nothing short of stunning.  ICYMI, see that via the linked text-image box below.

 

Investors, Professionals, Planners, Advocates – Examining Affordable Manufactured Home Industry Market Potential

 

The Truth Well Told?

While it is true that millions who own a pre-HUD Code mobile home or post-code manufactured home earn less than residents of other forms of housing, that sends a potentially problematic message to those who may have their nose in the air. MHI – or anyone else – ought to use that data point with caution.

It is a good thing that our industry can serve the working class, and those with lower incomes.  That the working class can qualify for a modern manufactured home ought to be celebrated. But it is a foolish thing to artificially limit the industry to serving only those fine economic groups. The industry should serve them all, and ought to work for financing that is appropriate, not only for the Clayton Homes backed ‘new class of homes.’ ICMYI, see the troubling report below.

 

DTS Manufactured Home Lending Committee Member Says MHI in “Unholy Alliance” to Divert Needed GSE Support Away from Manufactured Housing

 

The wizards of Arlington – who boldly claimed that they reached an audience of some 84,000,000 Americans with their advertorials, and millions more via Facebook,  clearly didn’t think that claim through.  If it were true, the historical poor results in recent years proves that MHI’s concept of ‘marketing and promotion’ did not resonate with the audience.

Drilling Down on State Manufactured Housing Shipment Data, Shocking Revelations, Warning Signs

Even more troubling, the already low numbers are now sliding in recent months.   Skyline Champion is right.  The industry has upside.  But will that be achieved by the current ‘leadership’ in Omaha-Knoxville-Arlington?

 

2018-12-10_0949SkyChampionManufacturedHousingShipmentHistoryDailyBusinessNewsMHProNewsNov2018

During an affordable housing crisis, the facts and trends are an alarming wake up call for those who think long term.

 

ManufacturedHousingInstituteLogoMHILogoScreenCpaturesMHIvideostatisticalclaimsDailyBusinessNewsMHproNews

Since this collage from MHI information was produced, it is now known that the industry finished 2018 with thousands of homes less than 100,000, under 97,000 new HUD Code homes were produced in 2018. But MHI feels no shame, why not?

 

No one thing explains everything about the headwinds manufactured housing faces. But poor communications about some great facts about manufactured homes and who owns them has to be part of the problem.

Among the more popular articles on MHLivingNews are those about movie stars and the rich and famous who own a manufactured home. Of course.

The newest article on MHLivingNews features Minnie Driver, but also sheds light on other “rich and frugal” residents of modern manufactured homes.

 

Celebrities, Millionaires, Billionaires and Their Appealing Manufactured Homes

 

Check it out on Manufactured Home Living News at the link above.  Why not share that link with your circle and prospects? When more professionals and shoppers know about the rich and frugal who own manufactured homes and love them, don’t be surprised when more Americans start buying new manufactured homes.

Celebrities owning manufactured homes could also make an impression with public officials too.  After all, they often get star struck too.  “We Provide, You Decide” © ## (News, analysis, commentary.)

 

ManufacturedHousingProNewsMHProNewsConfidentialTipsDocumentsNews

To report a news tip, click the image above or send an email to iReportMHNewsTips@mhmsm.com – To help us spot your message in our volume of email, please put the words NEWS TIP in the subject line.

NOTICE: You can get our ‘read-hot’ industry-leading emailed headline news updates, at this link here. You can join the scores who follow us on Twitter at this link. Connect on LinkedIn here.

NOTICE 2: Readers have periodically reported that they are getting a better experience when reading MHProNews on the Microsoft Edge, or Apple Safari browser than with Google’s Chrome browser. Chrome reportedly manipulates the content of a page more than the other two browsers do.

(Related Reports are further below. Third-party images and content are provided under fair use guidelines.)

1) To sign up in seconds for our MH Industry leading emailed news updates, click here.

ManufacturedHomeIndustry#1HeadlineNewsMHProNews

To see a sample of our emailed news update, click here. To sign up for the factory-built home industry’s #1 headline news, click here or the graphic above.

2) To pro-vide a News Tips and/or Commentary, click the link to the left. Please note if comments are on-or-off the record, thank you.

3) Marketing, Web, Video, Consulting, Recruiting and Training Re-sources

SoheylaKovachDailyBusinessNewsMHProNewsMHLivingNewsSubmitted by Soheyla Kovach to the Daily Business News for MHProNews.com. Soheyla is a managing member of LifeStyle Factory Homes, LLC, the parent company to MHProNews, and MHLivingNews.com.

 

 

Related Reports:

You can click on the image/text boxes to learn more about that topic.

Positive, Uplifting Third-Party Reports Favor Modern Manufactured Housing, So What’s Going Wrong?

DTS Manufactured Home Lending Committee Member Says MHI in “Unholy Alliance” to Divert Needed GSE Support Away from Manufactured Housing

Drilling Down on State Manufactured Housing Shipment Data, Shocking Revelations, Warning Signs

MHI’s Growth Agenda? Rick Robinson, JD, SVP Manufactured Housing Institute, Preemption Evidence, Writ of Mandamus, and Addressing HUD Code Manufactured Home Shipment Woes

Warren Buffet’s Quotable Quotes on Business, Institutions, Behavior, and News Reporting

 

Conquest Capitalism – Thoughts of Chairman Warren Buffett – Billionaires Campaign to Control Trillion Dollar Affordable Housing Market

Warren Buffett’s Moat, Understanding Manufactured Housing Requires Grasping Strategic Economic Moats

“Tug of War” – Manufactured Home Community Legislation – “Vicious Cycle Goes On,” Impacting Industry, Home Owners, and Potential Buyers

 

HUD Code Manufactured Home Production Decline Persists – Time For Action Not Excuses

“The Illusion of Motion Versus Real-World Challenges”

 

 

 

 

 

 

 

 

To submit a news tip, please click here: iReportMHNewsTips@MHMSM.com


Howard Schultz Serious About 2020 Independent Run, Outlines Plans, plus Manufactured Housing Equities Updates

March 13th, 2019 No comments

DowCNNBusinessTicker3132019If a few days of pause in headlines about billionaire Howard Schultz of Starbucks fame made you think you missed a latte, he’s back.  Schultz spoke in Miami, FL today, and outlined some of his concepts for a independent in the White House. On a day that broader markets rose, with a more mixed day on manufactured housing connected tracked equities, we’ll take a fresh look at Schultz plans for a 2020 campaign to become the first independent in the 21st century to become president.

 

If you’re new, already hooked on our new spotlight feature – or are ready to get the MH professional fever – our headline report is found further below, after the newsmaker bullets and major indexes closing tickers.

 

The evolving Daily Business News market report sets the manufactured home industry’s stocks in the broader context of the overall markets.  Headlines – at home and abroad – often move the markets.  So, this is an example of “News through the lens of manufactured homes, and factory-built housing.” ©

Part of this unique evening feature provides headlines – from both sides of the left-right media divide – which saves busy readers time, while underscoring topics that may be moving investors, which in turn move the markets.

Readers say this is also a useful quick-review tool that saves researchers time in getting a handle of the manufactured housing industry, through the lens of publicly-traded stocks connected with the manufactured home industry.

This is an exclusive evening or nightly example of MH “Industry News, Tips and Views, Pros Can Use.” © It is fascinating to see just how similar, and different, these two lists of headlines can be.

Want to know more about the left-right media divide from third party research?  ICYMI – for those not familiar with the “Full Measure,” ‘left-center-right’ media chart, please click here.

 

Select bullets from CNN Business

•          The company has lost more than $28 billion in market value since Friday

•          Grounding all 737 Max planes could cost Boeing billions of dollars

•          Boeing says it will tell the FAA to ground its 737 Max planes ‘out of an abundance of caution’

•          Kayak will allow flyers to filter by plane model, including the 737 Max jet

•          Norwegian Air wants Boeing to pay for grounded 737 Max planes

•          A group of 150 PhD economists are at the core of Amazon’s revolutionary e-commerce strategy

•          Fiat Chrysler recalls nearly 900,000 vehicles

•          Why failure shouldn’t be a bad word in business

•          Spotify wants EU antitrust officials to investigate Apple

•          Brexit chaos leaves business ‘staring down the precipice’

•          Toyota is working on a moon buggy

•          Huawei CEO: US scare tactics will frighten off investors

•          Who is Huawei founder Ren Zhengfei?

•          Huawei is under siege, and now it’s going on the offensive

•          Why the tech giant is suing the US government

•          Walgreens and CVS are 2019’s stock market losers

•          Rite Aid’s CEO is out as company cleans house

•          FDA calls Walgreens’ sale of tobacco to minors “disturbing”

•          This is the CVS of the future

 

Select bullets from Fox Business

 

•          Trump orders US to ground Boeing 737 Max jets

•          FAA has grounded these jets in the past

•          Pilot of crashed Ethiopian Airlines jet reported flight-control problems

•          After Boeing jet crash, Trump tweets ‘airplanes are becoming far too complex to fly’

•          British lawmakers reject no-deal Brexit in any circumstance

•          SEC chair Clayton on Elon Musk saga: 280 characters on Twitter ‘just aren’t enough’ at times

•          BlackBerry morphs into billion-dollar AI cyber company

•          Trump’s grounding of Boeing 737 Max jets trims stock market gains

•          Fiat Chrysler recalling nearly 863K US vehicles that don’t meet EPA standards

•          FDA moves to ban sales of flavored e-cigs

 

Today’s Market Indexes at the Closing Bell…

12MarketIndex3-13-2019YahooFinanceDailyBusinessNewsMHProNews 

 

Today’s Big Movers

For all the scores and highlights on tracked manufactured home connected stocks today, see thBloomberg graphic, posted below.

Today’s MH Market Spotlight Report –

SchultzSeriousAbout2020IndependentRunOutlinesPlansPlusManufacturedHOusingEquiteisUpdatesMHProNews

 

First, as a backgrounder, let’s share a video of Howard Schultz talking about leadership.

The video above is from a prior London Business Forum. “This is the story behind the Starbucks comeback told by its CEO Howard Schultz. Concerned that Starbucks had lost its way, Howard returned as CEO eight years after he stepped down. Determined to re-establish the company’s vision, Howard reveals what he has learnt about becoming and leading a global brand,” says that YouTube page summary.

Then, here’s CBS News on a talk by Shultz today.  Former Starbucks CEO Howard Schultz said he would lead a charge to make a “transformative change” for the country. He told CBS News’ Ed O’Keefe he would appoint “the most diverse administration” in history. Sounds a bit like the Obama 2008 campaign, but we’ll see.

 

 

Finally, from Fox Business, a 36 minute video of his talk today in Miami, FL.

The possibility of a Schultz campaign furrows brows among Democrats, which may make it a dream come true for the GOP.  But for those who reflect back on the Ross Perot independent campaign in the 1992 election cycle, it shouldn’t be taken lightly by either major party.   It could prove to be a healthy thing for the debates over who should lead the nation after the 2020 campaign voting wraps up.

Says fellow billionaire Steve Forbes, “Don’t under estimate a Schultz candidacy.”

 

Related Reports:

Raucous Caucus, Democratic Reality Check by Speaker Pelosi, Mayor Rahm Emanuel, plus MH Market Updates

Grasping True Value of the Green New Deal for America, Affordable Housing Professionals and Advocates

HUD Secretary Ben Carson on Opportunity Zones, Revitalization, DROPS 2020 Announcement, Plus Manufactured Home Stock Updates

Warren Kicked Hornet’s Nest – How Move May Connect With MH, Renters, Professionals

 

 

Bloomberg Closing Ticker for Tracked Equities on MHProNews…

NOTE: The chart below includes the Canadian stock, ECN, which purchased Triad Financial Services.

NOTE: The chart below covers a number of stocks NOT reflected in the Yahoo MHCV, shown above.

NOTE: Drew changed its name and trading symbol at the end of 2016 to Lippert (LCII).

BloombergManufacturedHousingManufacturedHomeCommunitiesLendingIndustryStocksClosingTicker

Berkshire Hathaway is the parent company to Clayton Homes21st Mortgage, Vanderbilt Mortgage and other factory built housing industry suppliers.

LCI Industries, Patrick, UFPI and LP all supply manufactured housing.

AMG, CG and TAVFX have investments in manufactured housing related businesses.

Your link to industry praise for our coverage, is found here.

For the examples of our kudos linked above…plus well over 1,000 positive, public comments, we say – “Thank You for your vote of confidence.”

 “SoheylaKovachDailyBusinessNewsMHProNewsMHLivingNewsWe Provide, You Decide.” © ## (News, analysis and commentary.)

(Image credits and information are as shown above, and when provided by third parties, are shared under fair use guidelines.)

Submitted by Soheyla Kovach to the Daily Business News for MHProNews.com.

To submit a news tip, please click here: iReportMHNewsTips@MHMSM.com


Investors, Professionals, Planners, Advocates – Examining Affordable Manufactured Home Industry Market Potential

March 13th, 2019 No comments

 

InvestorsProfessionalsPlannersAdvocatesExaminingAffordableManufacturedHomeIndsutryMarketPotentialDailyBusinessNewsMHProNews

There are already some 22 million in the U.S. living in
pre-or-post HUD Code homes, but what is the potential for the market?

 

Several reports independent of the manufactured housing industry in 2018 established the value of modern manufactured homes.  Several stated that manufactured homes were an important part of the solution for the affordable housing crisis.

A summary on several of those third-party studies that reflected positively on manufactured homes is linked here and further below, following the byline and notices.

So, there are already groups that see the value of manufactured homes, but there are also those outside of MHVille that think of our form of factory-built housing as homes for the poor, working, or lower middle class.  Some in our industry believe something similar. But is that a fair assessment?

The short answer to that subtopic is ‘yes and no.’ How so?

On the one hand, researchers reveal that the average income of HUD Code manufactured home residents is significantly lower than that of conventional housing. That’s a large market that is worth serving.

But it would ignore the reality that thousands who make far more than the average – and chose manufactured home living. Manufactured homes are desirable regardless of income.

  • MHLivingNews has interviewed millionaires who live in manufactured homes. There are also reports there of billionaires who own manufactured homes – even a single sectional.
  • MHLivingNews has also interviewed upper middle class owners of manufactured homes. There are likewise numbers of prior owners of conventional housing that own and praise their manufactured homes.
  • There is also Kid Rock video with the performer, his Rolls Royce, private jet and his manufactured home.

 

KidRockRollsRoyceManufacturedHomePoDunkOffiicalVideoDailyBusinessNewsMHProNews

Kid Rock – Po-Dunk [Official Video] Published on Jul 13, 2017 – 23,196,137 views, as of 3.13.2019 at 1:35 PM ET.

Which bring us to the broader question. Given the fact that numbers of upper-middle-class, plus some millionaires and billionaires have a manufactured home, what is the manufactured housing market potential? Let’s look.

First, to understand the answer to the question, first time readers and those new to manufactured housing must realize that for decades, there have been upscale manufactured homes and entry level HUD Code homes. It is somewhat similar to entry level cars, boats, RVs, other big ticket item industries.

With those thoughts in mind, here’s a snapshot of who could be a potential manufactured home customer.

  • Renters,
  • First Time Home Buyers.
  • Upsizers – including those who may own a conventionally built or other house, but want a larger floorplan home,
  • Downsizers – including those who own a conventional housing unit,
  • Retirees, and
  • Second or vacation home seekers.

 

Rephrased, almost anyone who is properly exposed to the realities vs the myths might want a manufactured home. Renters alone represent some 100,000,000 in the U.S., per CityLabs. iPropertyManagement says that about 33 percent of all households are in rental housing.  That one demographic group – renters – is enough to keep manufactured home producers busy growing in a sustainable way for years to come.  And the 2018 research by the National Association of Realtors (NAR) reflects the fact that millions of those make enough money to qualify for a manufactured home.

 

 

One more Factoid – What’s the Potential in Your Market?

Pointing to Census Bureau information, Melisa Data says that every year in the U.S. “an overall percentage of 14.19 percent annually” are moving from one housing unit to another. That means about 1 in 7 on average in your market are going to be moving every year.  Imagine that every 7th driver, every 7th person at a store, house of worship or wherever you encounter Americans are going to be moving this year.

Viewed as a marketer or sales professional should see this, that’s a huge and ongoing pool of potential prospects. Which begs the following questions.

  • So why are so relatively few prospects coming into your manufactured home community or street retail sales center?
  • Why are significant numbers of those coming into a sales center or community credit challenged than the pool seeking conventional housing?

Each of those 2 bullets are marketing, public relations, and educational issues.  But the fact that some prospects are well qualified, means that others like them can be attracted too. The fact that some millionaires and billionaires own a manufactured home, mean that more could be attracted too.  A look at the data with clear eyes tells the savvy that properly understood, the potential for manufactured housing is astronomical.

Which also means that the industry is underperforming, and it also means that those willing to apply the Sam Zell dictum could soar.  “When others are going left, look right.”  That ‘right’ is manufactured homes, communities, and other segments of the business.  Many underperforming means others could and should be outperforming and wildly prospering.

 

2018DataShareofHousingMarketManufacturedHousingInfographicDailyBusinessNewsMHProNews612

 

 

Bottom Line Takeaways for Industry Professionals? 

Whatever the agenda or reasoning process of others who seek to explain manufactured housing’s relatively low performance, the outline above reveals something brighter and more opportunity laden.

It’s an obvious advantage to be able to sell a product or service that costs less than competing alternatives. At present, manufactured homes are the lowest cost permanent housing choice made in the U.S. or Canada.  Here in the U.S., manufactured homes have the advantage of enhanced preemption. There are also multiple story options for manufactured homes that are rarely consider outside of this publication.

 

InfographicMobileManufacturedHomeManufacturedHousingIndustryFactsDataResearchMobileManufacturedHomeLivingNews

 

Those looking to explore this potential for their own business or location should check out the article linked from the text-image box below.

 

Rocking Manufactured Housing Shows, Events, and Marketing Promotions

 

The trump card the industry must use are the power of enforcing existing federal laws. Enhanced preemption is just one of the existing laws that could catapult the industry ahead, at the local level.

 

 

There are numerous reasons for a motivated operation with sufficient access to capital and other resources to be able to grow significantly.

 

 

The facts outlined herein provide reasons for the industry’s investors and professionals to grow at a far more robust clip.  Some of the reasons that the industry isn’t growing faster are found in the linked reports, below. “We Provide, You Decide” © ## (News, analysis, commentary.)

 

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Related Reports:

You can click on the image/text boxes to learn more about that topic.

Positive, Uplifting Third-Party Reports Favor Modern Manufactured Housing, So What’s Going Wrong?

DTS Manufactured Home Lending Committee Member Says MHI in “Unholy Alliance” to Divert Needed GSE Support Away from Manufactured Housing

Drilling Down on State Manufactured Housing Shipment Data, Shocking Revelations, Warning Signs

MHI’s Growth Agenda? Rick Robinson, JD, SVP Manufactured Housing Institute, Preemption Evidence, Writ of Mandamus, and Addressing HUD Code Manufactured Home Shipment Woes

Warren Buffet’s Quotable Quotes on Business, Institutions, Behavior, and News Reporting

 

Conquest Capitalism – Thoughts of Chairman Warren Buffett – Billionaires Campaign to Control Trillion Dollar Affordable Housing Market

Warren Buffett’s Moat, Understanding Manufactured Housing Requires Grasping Strategic Economic Moats

“Tug of War” – Manufactured Home Community Legislation – “Vicious Cycle Goes On,” Impacting Industry, Home Owners, and Potential Buyers

 

HUD Code Manufactured Home Production Decline Persists – Time For Action Not Excuses

“The Illusion of Motion Versus Real-World Challenges”

 

 

 

 

 

 

 

 

 

 

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“Tug of War” – Manufactured Home Community Legislation – “Vicious Cycle Goes On,” Impacting Industry, Home Owners, and Potential Buyers

March 13th, 2019 No comments

 TugofWarManufacturedHomeCommunityLegislationViciousCycleGoesOnImpactingIndustryHomeOwnersPotentialBuyersDailyBusinessNewsMHProNews

How does the manufactured housing industry, it’s current and potential home owners achieve mutual victories? That ought to be a key issue for professionals, investors, indeed all in the mix.

 

Here’s how a multi-year manufactured home industry leader put it.

ChristStinebertPhotoFormerMHIPresidentCurrentAmericanFinacialServicesAssociationPresidentAFSA-DailyBusinessNewsMHProNewsThe entire industry must focus on one goal – increasing the value proposition to the homeowner. If we cannot offer our homeowners realistic value for their housing dollar, how do we expect to compete in the marketplace. This means giving the customer true value with their purchase, then keeping them happy after the sale. This means insuring the homeowner builds equity and wealth in their home. And finally, this means providing for stable, viable resale market for when it is time to sell the home. Once the industry delivers this value, the rest will fall into place naturally.”

 

That point was made by former Manufactured Housing Institute (MHI) President Chris Stinebert. See his full commentary, linked here.

 

That goal of Stinebert’s ought to be at the heart of what all sides consider in a looming state legislative slug fest. The Daily Business News on MHProNews will explore the issue in depth, below. Why?  Because this pending bill is a symptom of a broader problem, that based on years of trend-lines and left unaddressed will leave manufactured housing stuck in low gear.

That would harm the interests of most businesses, home owners, housing seekers, investors and others in the mix.

Here’s the genesis of how this issue was brought to MHProNews’ attention.

 

 

Mainstream Media Outreach for Background on Pending Legislation

An email came in 3.12.2019 from a reporter to MHProNews’ publisher yesterday morning. As is often the case, the journalist had a deadline – in his case – for that same day. It was a request for ‘on the record’ comment about a bill pending at the state level that would impact community owners, management companies, and mobile or manufactured home residents.

By late afternoon, that reporter’s article was already written and published.

On Google’s news function, it was the top article last night under both “manufactured home” news searches and “mobile home” news searches. That’s important, as will be revealed later.

 

BradentonHeraldLATonyKovachinNewsFloridaMobileHomeParkOwnersEvenMorePowerOverHomeownersDailyBusinessNewsMHProNews

 

The screen captures above and below document that point.

 

BradentonHeraldLATonyKovachinNewsFloridaManufacturedHomeCommunityOwnersEvenMorePowerOverHomeownersDailyBusinessNewsMHProNews

 

To a reporter doing his research and making his inquiry, it might have seemed like a black and white issue.

But in fact, the tension between community owners and those residents involved is arguably an artificially created problem. It is avoidable, but only if the various parties begin to understand what caused these symptoms that lead to the legislative proposals and resulting tensions in the first place. That will be covered further below.

This is therefore a useful example of lessons learned in dealing with media, public officials, or other researchers who want the truth, instead of some pre-packaged agenda driven response.

The print journalist should be commended for getting a range of perspectives, and then trying to accurately reflect them in his report. Note that headlines are often the work of an editor, not the journalist.

Here was the segue that led to the reporter’s question to MHProNews’ publisher. As is our custom here on the Daily Business News on MHProNews, direct quotes are in brown and bold text. The first and last paragraph are from the reporter, the big middle paragraph is from a third party, and it is what the reporter wanted reaction to for his report.

MarkYoungPhotoBradentonHeraldUrbanAffairsReporterLinkedInDailyBusinessNewsMHProNews

The first and third paragraphs at the right are Mark Young’s statement or questions, while the large paragraph in the middle was the statement he was receiving comments and reaction to from industry expert, L. A. ‘Tony’ Kovach,

On a different matter, I’d like your official input on another story. I received the following email today:

 

“Are you aware there are bills before the Florida Legislature that will have a tremendous impact on the lives on those that live in land leased mobile home parks.  723.035 will amend the law to include the responsibility for mowing, trimming trees, power washing, and painting their home, just to name a few.  If, after notice from the park owner, if the violations are not corrected within the stated time, the park owner may enter the lot, perform the work and charge enough to “ensure compliance in the future”.  Though we do see the need for some method of keeping up appearances of the community, it is that “ ensuring compliance “ that we object to.  And can you envision the elderly trimming our live oaks and palm trees.  Can you imagine being away on vacation and not receiving the notice that your home needs painting, only to return and find that it has been painted and you are receiving the bill for it.  The other large issue in the bills, is mandatory binding arbitration for minor violations of Homeowners Associations. There are many land leased mobile home parks in the Manatee Sarasota area, I thought this may be of interest to them.  Thank you for your time.”

 

Are you up to speed on this? Thoughts? Good idea, bad idea? I’m hoping to have a story on this today. I just got in so still have to research it.”

 

Note that the journalist didn’t reveal who spoke those words?  That’s fine, but the writer did provide a direct quote, to which publisher L.A. ‘Tony’ Kovach responded as follows momentarily.  The final news product had the video below, which of course was not made available to Tony until after the print journalist’s report was finished. The video was credited to another person other than the article’s reporter.

 

 

 

 

As a housekeeping note for professional reader clarity, the other items being discussed between the mainstream journalist and Tony Kovach are edited out as not germane to the issue the print reporter was focused upon for an article about pending legislation. Kovach began addressing the reporter on his requested topic as follows.

 

Now, to your question. It’s not as simple as you might think.

As to the pending legislation, I’m not familiar with the specifics of the bill.  The Florida Manufactured Housing Association (FMHA) could give you their feedback.  That said, I am broadly familiar with the issues being mentioned, and will give you insights few if any will care to share.

At present, there is a tug of war that takes place all too often between home owner groups and some manufactured home community owners and most industry trade groups.  While the issues can be significant to the residents and community owners alike, the source of tension are frankly symptoms of broader issues. 

Here’s why. 

More manufactured home communities are closing than are being opened.  That fact has several impacts on the business marketplace, manufactured home owners, and potential customers.  Using the issues you asked about as an example, here’s how that plays out in the real world. 

First, it is in everyone’s interests to keep a community neat and clean. Mowing grass, trimming trees, etc. are both safety and appearance issues that protect the value of the home owners and community alike. 

The question is, how is a valid goal best accomplished?  Let’s look at a hypothetical case, and you’ll see why this simple question can be problematic in practice.

John and Mary Smith are getting fined for unmowed grass by an overly aggressive community owner.

Unlike an individually owned land-lease community, where the community owner may interact with their residents daily, the corporate giants are answering to investors.  Those giants can ‘get away with’ steep fines or other practices in part because the resident have few if any other options. 

The resident can’t move their manufactured home with ease.  Manufactured homes can be moved, but it requires specialized equipment and experienced professionals to move them, that’s thousands of dollars.  It’s part of the reason why once they are properly installed, manufactured homes are better thought of as immobile homes rather than ‘mobile,’ it’s costly to move.

But that cost to move would be less relevant if there were plenty of competitors in a given market that were opening up new land-lease communities.  30 or 40 years ago, these sorts of tension issues between management and residents just didn’t occur as they do now.  Why?  Because new communities were being built. If some resident didn’t like management company X, and that resident was in fact being mistreated by the management at X, new community owner Y may pay to have that customer’s home moved to Y’s new community. 

Rephrased, normal supply and demand decades ago created options for everyone in the mix. That in turn kept all parties at a more level playing field.  Management treated residents fairly, because they didn’t want to see their home moved. Makes sense?

Which bring us to a broader issue. How is possible that during an affordable housing crisis, there are so few manufactured home communities being built or expanded?  Factually, manufactured homes are the most proven kind of affordable housing, period. The graphic below summarizes key data points, from 2018. The problems that were associated with the construction, safety, and energy standards of older mobile homes were largely resolved after the federal HUD Code for manufactured housing went into effect on June 15, 1976.  Put differently, the issues over quality or durability of construction were resolved almost 43 years ago.  Yet the stigma remains.  Why?

Those federal standards for manufactured homes ought to be preemptive, especially since the passage of the Manufactured Housing Improvement Act of 2000 (MHIA), which established “enhanced preemption.”

But for a variety of reasons, some major industry trade groups won’t routinely publicly defend and promote that preemption.  An arguable case in point is the Manufactured Housing Institute (MHI). State associations often follow MHI’s lead.

Here’s how that plays out with John and Mary.  Let’s say that there were too few manufactured home communities being built, as is now the case. The Smith’s could, in theory, move to a privately owned site that they buy.  Enhanced preemption makes that possible.  By the way, the fear that NIMBY forces have of a manufactured home installed next door has been debunked by HUD research and others.

 

 

But for whatever reason, many – but not all – trade groups may posture support for enhanced preemption, but they do little in practice to support it. Some manufactured home community association leaders won’t even mention it. 

By de facto failing to encourage a robust array of options for current and future community residents to turn to, the existing manufactured home communities become in some ways ‘more valuable’ real estate.

What ends up happening as a result are scenarios like this bill you are asking about.  Resident groups want to nix it, because they don’t want (understandably so) a community owner to excessively fine them. Communities want the ability to do so, for both just – and potentially unjust – reasons.

The ‘solution’ that more radical resident groups like MHAction promote is that communities should all be resident owned communities (ROCs).  But that brings us back to Millie Francis. She lives in a resident owned community.  She is supposed to have certain safeguards. In fact, Millie told me she was fined for unmowed grass, and otherwise harassed prior to her Our Lady of Guadalupe artwork incident. Where was her protection as a shareholder in her community?

The solution to this patchwork of overlapping problems is to stop the artificial manipulation of the market.  By action or inaction, big corporate interests and their trade groups can increasingly gain control over more once independently owned communities. With little effective competition, the residents become trapped.  But the answer isn’t ROCs, as Millie’s case proved they can be just as overreaching as an aggressive large community owner might be.

Finally, I’m not saying that every big community is bad, nor that every small community owner is good.  [So] the dynamics above may or may not fit specific cases.

To answer your final question, it isn’t a good or a bad idea. It’s entirely misplaced.  They are looking at symptoms, not the cause.

The underlying causes for the tension will likely remain unaddressed by any such bill.  Until market forces are allowed back in, giving home owners choices, and giving manufactured home communities a natural check on overreaching, there are going to be no quick or easy solutions. Education has to be part of that mix, because lack of understanding causes fear, frustration and can lead to bad legislation. 

A case in point is rent control in the state of Delaware, where resident groups wanted that measure passed to prevent abuses by big operators.  The resident groups in fact got a bill passed.  Those same resident groups, now years later, are still unhappy.  The law doesn’t work as they thought it would. Meanwhile, those complex laws only push more small operators out of the business, and thus encouraged more big companies to buy out smaller ones.  No new communities are being built. And the vicious cycle goes on.

Make sense, sir? 

All the Best,

 

LATonyKovachMHLivingnewsMHProNewsPHotoTony

 

L. A. ‘Tony’ Kovach
www.MHLivingNews.com|www.MHProNews.com| Office 863-213-4090 |

 

The article the reporter published is linked below.

 

 

 

BradentonHeraldBillWouldGiveFloridaMobileHomeParkOwnersEvenMorePowerOverHomeOwners

Thousands won’t go beyond the headline. It is one more black eye for the industry, and hurts the appeal and value of communities, retailers, and home owners among others. Before industry considers such a bill, they should realize that such headlines are likely to occur. The image above is a collage from the sources as noted.  The story is linked below.
https://www.bradenton.com/news/local/article227400579.html

 

Why it Matters? What Does This Reveal? 

First, there are voices in media across the left-right divide that want to frame stories to fit an agenda. Per third party surveys – many but not all in media tent to tilt left or Democratic, so that narrative is going to be more common. That said, there are a range of media today that likewise find audiences that cross that left-right divide. Some in media – perhaps cognizant of the charges in the last few years of ‘Fake News’ – want to get the facts correctly and accurately.  The point is that a journalist merits some benefit of the doubt, unless or until they reveal themselves as a mere hack for a particular perspective.

But all of those points mean that precise phrasing is important. This report in the Bradenton newspaper  – a McClatchy owned media outlet – is a case in point.

Every reporter feels compelled to cull out as much as possible to get to the heart of the matter. Good writers want to reflect the tension in a controversy that reflects ‘both sides.’

MHProNews readers can see for themselves that every quote used by the reporter was accurate. Keep in mind as you read the article linked below that the same process of culling out some details from each source the Bradenton Herald’s writer sought for comments is likely at play.  No one gets every word quoted, unless the quote is a sound bite only.

Superficiality-is-the-curse-of-the-modernWorldMatthewKellyQuoteFancyInspirationBlogMHProNews720

Warren Buffett didn’t say it, but another successful business guru did. Want to understand something enough to benefit from it? There is no substitute to investing the time needed. Buffett says he reads 5 to 6 hours a day. Wow…but look were that got him.

 

 

Back to Stinebert, MHARR – and The Third Way for Manufactured Housing?

At present, the arguable manipulation of the marketplace by forces within and outside of manufactured housing is leading the industry and its customers into what amounts to an oppositional or confrontational posture.  It is win-lose, and each side wants what it wants.

But the various parties may or may not always realize that they are dealing with symptoms rather than the core issue that Tony Kovach addressed in his commentary, quoted at length above.

That core issue is summed up in making the value proposition good for the consumer, and it is achieved by applying what the Manufactured Housing Association for Regulatory Reform (MHARR) has argued in favor of for many years.  Namely, robust enforcement of enhanced preemption and a level playing field in financing. Only that combination, says MHARR, will yield robust rising production.  It is achieved by ending the “Illusion of Motion” vs. seeking actual measurable results.

It is that third way – getting to the heart of the matter instead of dealing with symptoms – that manufactured housing professionals and resident leaders ought to ponder and pursue.  Because the lack of options for the resident-homeowner is indeed a factor that yields the “tug of war” dynamic.

In no particular order of importance:

 

  • Manufactured home communities, residents, and possible buyers are all being impacted by this confrontational dynamic. This kind of tug-of-war or ‘win-lose’ vantagepoint doesn’t tend to exist to this same degree in other American industries between businesses and their customers.  The natural order of free enterprise ought to yield more alignment than the currently manipulated marketplace all-too-often produces.  More typically, a business provides a desired service, and the customer is willing to pay, thus both routinely end up happy, because that is what keeps a business, in business. That’s healthy, while the current state of affairs is arguably harmful to each segment’s longer term interests.
  • Short-term thinking and behavior may appear to benefit the businesses briefly and the same may seem to be true for the mobile or manufactured home owners. But in fact, both sides end up with mid-to-longer term issues that will at some point artificially harm the interests of each. The current low level of new home sales is in part due to a steady stream of mainstream news reports that often appear problematic to the home seeking public. A possible home buyer won’t slug through this kind of nuanced analysis, but professionals or leaders keen on sustainability and win-win growth may.
  • There are no short-cuts. The multifamily housing world is growing, and that growth isn’t seen as problematic for existing apartment owners. So why is it stunted growth in manufactured home community development viewed as healthy or desirable by some in the manufactured home world? The current state-of-affairs mitigates against smaller firms in favor of larger ones.  But even bigger firms know the obvious parallel between manufactured home communities and multifamily housing. So why don’t leaders of larger operations see the longer term harm this current dynamic will eventually impose upon investors and resident-owners alike?  The status quo – viewed objectively – has a future Cavco Industries type threat looming over it, perhaps one that is even bigger.  Or, if a strongly leftist government takes root in Washington, D.C., or at a state house, then the interest of community owners could well be harmed sufficiently. It is avoidable now, so long as long-term win-win mindsets are at work.
  • Therefore, it is arguably in the long-term interests of most involved in such struggles to restore the marketplace to a more normal state affairs. That’s very much in keeping with what MHARR’s advocacy would yield. Enforce existing laws, and the market will be resorted to more normal, and eventually, robust health.

 

That would in turn yield what MHI’s former president Christ Stinebert called for, as previously quoted.

 

ChrisStinebertFormerPresidentManufacturedHousingInstituteAFSAceoMHIndustryMustFocusGoalIncreasingValuePropositionHomeOwnerMHProNewsQuotePhoto

 

Tony Kovach took the time to lay out and link up facts that allowed for a more nuanced final news product.  That should be a key part of what growth-minded associations, and businesses of all sizes seek.

The status quo is fraught with landlines. It creates winners-and-losers. That’s arguably not the norm in most industries. For longer term sustainability that leads to mutual victories, the status quo must be changed.

If current industry trade groups won’t adapt and to the best elements of the principles that MHARR and MHI’s former CEO made in his quote above, then new structures in the post-production realm must be established. Otherwise, the trend lines of more community closures than openings will yield only more woes.  It remains to be seen what the new National Association for Manufactured Housing Community Owners (NAMHCO) will do about such vexing controversies.

 

 

The Last Blockbuster?

The last Blockbuster store on planet earth was recently in the news. Not so many years ago, Blockbuster was a giant, but it failed to adapt. That’s a timely warning to the manufactured housing industry. The low new home shipment levels is another warning.  The time to act is ASAP, as soon as possible, preferably now.

Positive changes that yield mutual victories must be part of the mix. On that point quote above, Stinebert was arguably correct.

Which begs the question, why did it have to be Stinebert’s parting message? Was the growing influence of Omaha-Knoxville over Arlington based MHI already playing out?  See the related reports below for more insights on that question. “We Provide, You Decide” ©  ## (News, analysis, commentary.)

 

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Raucous Caucus, Democratic Reality Check by Speaker Pelosi, Mayor Rahm Emanuel, plus MH Market Updates

March 12th, 2019 No comments

CNNmone3.12.2019ManufacturedHomeStocksMarketsReportsMHProNewsIf Trump’s only hope for winning a second term turns on his ability to paint us as socialists, we shouldn’t play to type,” said Chicago Mayor and former President Barack Obama White House Chief of Staff, Rahm Emanuel, in a warning to fellow Democrats in an op-ed to the Atlantic. Once more, Speaker of the House Nancy Pelosi (CA-D) is trying to bring reason to her raucous caucus.  Some are saying, if President Trump runs – which he says he will do – he’s already won if he is competing against an openly Socialist candidate.  Which way are Democratic winds blowing?

 

On a day when the broader markets rose modestly, and manufactured housing stocks were more mixed, quotes from Speaker Pelosi and Mayor Emanuel this evening makes the debate for the future of America tonight’s featured topic.

 

If you’re new, already hooked on our new spotlight feature – or are ready to get the MH professional fever – our headline report is found further belowafter the newsmaker bullets and major indexes closing tickers.

 

The evolving Daily Business News market report sets the manufactured home industry’s stocks in the broader context of the overall markets.  Headlines – at home and abroad – often move the markets.  So, this is an example of “News through the lens of manufactured homes, and factory-built housing.” ©

Part of this unique evening feature provides headlines – from both sides of the left-right media divide – which saves busy readers time, while underscoring topics that may be moving investors, which in turn move the markets.

Readers say this is also a useful quick-review tool that saves researchers time in getting a handle of the manufactured housing industry, through the lens of publicly-traded stocks connected with the manufactured home industry.

This is an exclusive evening or nightly example of MH “Industry News, Tips and Views, Pros Can Use.” © It is fascinating to see just how similar, and different, these two lists of headlines can be.

Want to know more about the left-right media divide from third party research?  ICYMI – for those not familiar with the “Full Measure,” ‘left-center-right’ media chart, please click here.

CNNFoxNewsLeftRightMediaBiasDailyBusinessNewsMHproNEwsSharylAttkisson

MHProNews looks at issues from a wide variety of perspectives.  For insights from Sharyl Attkisson on how to detect the agendas behind news sources, click here.

 

Select bullets from CNN Money…

  • The world is grounding 737 MAX planes
  • A growing number of airlines say they won’t fly the planes. Why isn’t Boeing?
  • The stock: Shares of Boeing stock continue to slide
  • Consumer Reports: Ground the Boeing 737 MAX 8
  • CEO tells CNN: Ethiopan Airlines pilot had ‘flight control problems’
  • markets end the day mixed; Boeing drags Dow lower
  • Lumber Liquidators will pay $33 million for formaldehyde fraud
  • Volkswagen says its future is electric
  • Real-time crime alerting app Citizen takes off in big cities
  • Wells Fargo CEO Tim Sloan faces an angry Congress
  • Fox News prepares to court advertisers as network grapples with multiple scandals
  • Disney says its Fox takeover will take effect on March 20
  • Tesla bull says ‘poor communication’ is Elon Musk’s biggest problem
  • Facebook removes, then restores Elizabeth Warren’s ads calling for breaking up Big Tech
  • Harley-Davidson sees chance to outdo e-scooter companies
  • Content by LendingTree
  • 30-year fixed rates just declined. See if you qualify
  • Brexit chaos means business is ‘staring down the precipice’
  • Ginni Rometty is shaping IBM’s future with a $34 billion acquisition
  • ‘Time is not our friend’: How Mary Barra’s impatience could save GM
  • He took the leap into cannabis. Now everyone is following
  • Meet the surgeon Buffett, Bezos and Dimon trust to fix health care
  • The CEO spending $62 billion to transform a centuries-old Japanese company
  • Chipotle is bringing its new loyalty program to your Venmo feed
  • Domino’s rewards customers for buying pizza — even from its competitors
  • Robot waiters and snail pizza: What US fast food brands do to please Chinese diners
  • Starbucks’ new 32,000-square-foot store in Tokyo is its biggest in the world
  • Chick-fil-A is trying to get into your home

 

Select Bullets from Fox Business

  • Business leaders, celebrities named in college admissions scandal
  • College admissions cheating scam, by the numbers
  • Trump wants colleges to have ‘skin’ in student loan debt game
  • WATCH: Wells Fargo CEO gets bipartisan rebuke in fiery congressional hearing
  • Gwyneth Paltrow says Amazon’s Jeff Bezos is no mentor to her
  • Brexit vote: UK parliament rejects May’s EU deal again
  • Dick’s to stop selling guns in 125 stores amid sales fallout from ban
  • More countries, airlines suspend 737 Max service as Boeing struggles to contain fallout
  • After Boeing jet crash, Trump tweets ‘airplanes are becoming far too complex to fly’
  • These US airlines operate Boeing 737 Max jets
  • Malcolm Gladwell: Self-driving vehicles could make traffic worse, pose cybersecurity risk
  • Amazon is hiring 3,000 remote workers right now, here are some tips on snagging one
  • Tax season: A look at IRS penalties
  • The next thing millennials are set to kill? College textbooks
  • Honda to recall about 1M vehicles in the US with Takata airbags
  • Barstool Sports boss slams NFL commissioner: Goodell is ‘worst human’ ever
  • Queen Elizabeth and Woody Johnson’s Brexit dinner on the books: Report
  • Beto O’Rourke’s economic, business views
  • Toys R Us’ real estate arm exits bankruptcy with new name
  • ‘Able’ Americans collecting welfare benefits need stricter work requirements: Andy Puzder
  • At age 30, World Wide Web is ‘not the web we wanted’
  • UnitedHealth extends Trump proposal, requires drug rebates to flow to patients
  • Mental health and the workplace: What employers must realize

 

Today’s markets and stocks, at the closing bell…

9MarketIndicatorsYahooFinance3.12.2019DailyBusinessNeawsManufacturedHousingIndustryStocksMarketsReportsDataMHProNews-A

 

Today’s Big Movers

For all the scores and highlights on tracked manufactured home connected stocks today, see thBloomberg graphic, posted below.

Today’s MH Market Spotlight Report –

RaucousCaucusDemocraticRealityCheckSpeakerPelosiMayorRahmEmanuelPlusMHMarketUpdate

Yesterday, this feature spotlighted the de facto formal leader of the Democratic Party, Speaker of the House Nancy Pelosi, who broke the news to her raucous caucus. Barring overwhelming evidence and enough GOP buy in, there will be no impeachment of President Donald J. Trump, said the California Democrat.

Now, in comments to Rolling Stone, Speaker Pelosi tossed more cold water on the far-left wing of her party.

Said Pelosi to Rolling Stone:

When they say Medicare for All, people have to understand this: Medicare for All is not as good a benefit as the Affordable Care Act. It doesn’t have catastrophic [coverage] you have to go buy it. It doesn’t have dental. It’s not as good as the plans that you can buy under the Affordable Care Act. So I say to them, come in with your ideas, but understand that we’re either gonna have to improve Medicare — for all, including seniors — or else people are not gonna get what they think they’re gonna get. And by the way, how’s it gonna be paid for?  Now, single-payer is a different thing. People use the terms interchangeably. Sometimes it could be the same thing, but it’s not always. Single-payer is just about who pays. It’s not about what the benefits are. That is, administratively, the simplest thing to do, but to convert to it? Thirty trillion dollars. Now, how do you pay for that? So I said, “Look, just put them all on the table, and let’s have the discussion, and let people see what it is. But know what it is that you’re talking about.” All I want is the goal of every American having access to health care. You don’t get there by dismantling the Affordable Care Act.”

That sounds a bit more like Howard Schultz than Senator Bernie Sanders.

This might be viewed as good news for those in the moderate wing of the Democratic Party, where several seats were picked up by candidates who ran as moderates in 2018 battle ground states.

But as the video which Pelosi and some of her leftist leaning colleagues reflects below, she’s trying to walk a tightrope. No doubt, the pragmatic side of Pelosi wants the energy that the leftist ‘democratic socialist’ wing of her party brings, especially with younger voters. So she’s trying to show both solidarity and reality at the same time.

Good luck with that juggling act, Nancy?

Then, there’s former Obama Administration White House Chief of Staff and Chicago Mayor, Rahm Emanuel.  In a Sunday op-ed to the Atlantic the mayor said, “Democrats can’t bank on voters being more dismayed by him [POTUS Trump] than they are enamored of us.”

The last thing we should do is serve him slow pitches over the plate that allow him to define us on his terms,” Emanuel wrote. “Unfortunately, that’s exactly what Democrats have been doing since he went before Congress in early February. It’s almost as if we’ve been duped into reading from his [POTUS Trump’s] ready-made script.”

Earth to Democrats: Republicans are telling you something when they gleefully schedule votes on proposals like the Green New Deal, Medicare for all, and a 70 percent marginal tax rate,” the 2nd term Chicago mayor and Democratic strategist said.

That’s a thinly veiled slam at the far left of his party.

What does this mean to investors? At least there is a debate among Democrats, it isn’t all left-wing socialist plans and talk.  Senator Elizabeth Warren (MA-D), when asked if she is a socialist, said she is for markets.  That may come as a surprise to some, but it is actually a theme of hers for some time.

 

Stay tuned and sign up for our industry leading email news updates via the link below.

Email with this week’s eblast,

See the related reports for more. MHProNews will stay in touch with the politics that impact your money and investments.

Closing thought for this evening, the Special Counsel Robert Mueller’s report is now set to be released to specific officials within days.  Expect much of it to be made public.  The ramp up of Democratic investigations, say D.C. sources, are clues that the report won’t have the bombshell of “Russia collusion” that Democrats have hoped for from over 2 years of FBI and then the special counsel’s investigations.  No charges brought to date have had anything to do with alleged collusion with Russia. That, it seems, was a massive case of fake news.

Related Reports:

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Bloomberg Closing Ticker for MHProNews…

NOTE: The chart below includes the Canadian stock, ECN, which purchased Triad Financial Services.

NOTE: The chart below covers a number of stocks NOT reflected in the Yahoo MHCV, shown above.

NOTE: Drew changed its name and trading symbol at the end of 2016 to Lippert (LCII).

3.12.2019DailyBusinessNewsManufacturedHousingConnectedMarketReportsBloombergMHProNews

 

Berkshire Hathaway is the parent company to Clayton Homes21st Mortgage, Vanderbilt Mortgage and other factory built housing industry suppliers.

LCI Industries, Patrick, UFPI and LP all supply manufactured housing.

AMG, CG and TAVFX have investments in manufactured housing related businesses.

Your link to industry praise for our coverage, is found here.

For the examples of our kudos linked above…plus well over 1,000 positive, public comments, we say – “Thank You for your vote of confidence.”

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To submit a news tip, please click here: iReportMHNewsTips@MHMSM.com


“Warren Buffett has Another Headache” from Berkshire Hathaway Owned Brand, Says NY Post “it ain’t from a Dairy Queen Blizzard.”

March 12th, 2019 No comments

 

WarrenBuffettHasAnotherHeadacheFromBerkshireHathawayOwnedBrandNYPostAndItAintFromDiaryQueenBlizzardDailyBusinessNewsMHProNews

In a pre-dawn exclusive, the New York Post cited investigations in New Jersey by state regulators “since at least May” of 2018.  They noted that “Applied Underwriters, which was accused of “bait and switch” marketing tactics by California officials in 2017, illegally altered its contracts with customers to boost the fees it was charging, according to a May 18 letter to the company from the New Jersey Department of Business and Insurance.”

 

That’s significant, but what comes with it could signal the next bombshell for manufactured housing professionals.  Note the company named at the end of the next sentence?

The fracas puts Applied in a growing league of companies substantially owned by Buffett’s $500 billion Berkshire holding company to come under scrutiny by regulators, including Wells Fargo and mobile home company Clayton Homes.”

While others in media are covering related issues, MHProNews continues to be virtually solo in manufactured housing industry trade media – other than the Manufactured Housing Association for Regulatory Reform or MHARR – at raising concerns about the regulatory and other legal concerns by the dominating companies in manufactured housing. Those dominating firms are in the Knoxville, TN metro.  Their purported puppet trade association is based in Arlington, VA.  It’s the Manufactured Housing Institute.

As an example of mainstream media reports, there is this one from Clayton’s hometown Knoxville media, which spotlighted issues previously reported by MHProNews or others. But why by no one else in the manufactured housing industry trade media? Can you spell, industry echo chamber?  Have you seen the Sharyl Attkisson report on media manipulation, linked here?

 

While some in mainstream media have spoken to MHProNews about the exclusive report linked below, so far others have not yet published on that specific topic.  But federal officials reportedly have per federal sources to MHProNews, been looking at issues like those reported below.

 

Bridging Gap$, Affordable Housing Solution Yields Higher Pay, More Wealth, But Corrupt, Rigged Billionaire’s Moat is Barrier

 

Back to the NY Post

But analysts say the company’s legal woes are also to blame. “The reason for vacating [Applied] is because of these regulatory issues and headaches,” said Greggory Warren, a Morningstar analyst, told The Post.

But the very mention of Clayton Homes and Wells Fargo in the same report suggests that the apparently still waters are in fact bubbling beneath the surface of federal and other legal investigations.

An attorney investigating certain manufactured home industry practices told MHProNews just last week that Chairman Warren Buffett’s Berkshire Hathaway had hired an antitrust attorney.  That same legal source said that antitrust attorney left not long after.  That claim has yet to be independently confirmed, but the legal source was confident in the claim.

Keep in mind that the Securities and Exchange Commission (SEC) would not ‘confirm or deny’ allegations that they are investigating possible collusion involving former Clayton Homes division president, Joe Stegmayer, who went to Cavco Industries (CVCO).  Cavco are under a legal cloud with numerous plaintiffs attorneys circling their operation, see a related report, further below the byline and notices.

The New York State Attorney General’s office referred a complaint involving the reported information linked here to the Consumer Financial Protection Bureau or CFPB.

While 21st Mortgage Corp’s attorney denies the charges, that same attorney did not deny the authenticity of the documents and quotes referenced. A careful read of the 21st attorney’s record, which is part of the report linked below, suggests it was a non-denial denial. As in, ‘There’s nothing to see here, so, please, please, please move on.’

 

21st Mortgage Suit’s CFPB Denial, Exclusive Document on Berkshire Hathaway Manufactured Housing Brands Investigation

 

Senator Elizabeth Warren (MA-D) 2020 presidential campaign signaled an interest in the information in this previously linked report. While Warren is a ‘dark horse’ candidate in the eyes of some for the Democratic presidential nomination, her profile rose when she called for antitrust action against big tech.  Warren’s previously spoken at length about her antitrust positions, and it would be no surprise if Warren picked up the Clayton Homes and related antitrust issue too.

MHProNews will continue to monitor and report on these developments.  The exclusive New York Post report is linked here.

Stay tuned, because there are several ways that issues first reported here on MHProNews could break into the mainstream.  To keep up with the latest, sign up for our industry leading headline news, typically delivered to your inbox twice weekly.  For more Omaha-Knoxville-Arlington axis related reports, scowl further below the bylines and offers.  “We Provide, You Decide” © on MH “Industry News, Tips, and Views that Pros Can Use.” ©  ## (News, analysis, commentary.)

 

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Related Reports:

You can click on the image/text boxes to learn more about that topic.

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DTS Manufactured Home Lending Committee Member Says MHI in “Unholy Alliance” to Divert Needed GSE Support Away from Manufactured Housing

March 12th, 2019 No comments

 

WhisleblowerDTSManufacturedHomeLendingCommitteeMemberSaysMHIUnholyAllianceDivertNeedLendingfromManufacturedHousingDailyBusinessNewsMHproNews

The source of the following memo is known to have served on one or more Duty to Serve (DTS) committee(s) with the Government Sponsored Enterprises (GSE) of Fannie Mae, Freddie Mac, other Manufactured Housing Institute (MHI) staff, and MHI member companies that participated in various discussions about access to lower cost lending for manufactured homes.

 

Never forget, not every MHI member agrees with what the Arlington, VA based trade group is doing.

The memo itself says it was not for attribution, meaning it was sent to MHProNews publisher L. A. ‘Tony’ Kovach for consideration of coverage on an ‘off the record’ basis.

The edits by the Daily Business News are shown in brackets, for example, to make clear that the sender provided an article from Housing Wire and was commenting on it.

The memo raises several troubling concerns that parallel issues that MHProNews has previously spotlighted. First, here’s the text of the memo to MHProNews.

 

Tony:

[I] offer the following points with respect to the article…[below from Housing Wire] on GSE reform and MHI signed on to – and thereby promoting — a “go slow” approach. These are not for specific attribution…but point out the hypocrisy inherent in MHI’s conflicting positions:

1.     How can MHI claim to be pressing the GSEs to implement DTS in a timely fashion, when they simultaneously advocate a “go slow” approach to needed GSE reforms overall? 

2.     How can MHI align itself with the site-built industry, which does not want GSE reform to negatively impact their much larger purchase-money loans (thus the overly-cautious go-slow approach), when the HUD Code manufactured housing industry wants and needs – on an expedited basis – GSE support for its much smaller consumer loans?

3.     This amounts to an “unholy alliance” between MHI and the site-built industry, which is trying to preserve its virtual monopoly on GSE support.

4.     This, however, is consistent with – and would seem to confirm – that MHI and large HUD Code manufacturers have cut a bargain with the GSEs and FHFA to divert much of DTS to a euphemistic “new class” of homes, which are not mainstream, affordable, manufactured homes (and particularly not chattel-financed manufactured homes).

5.     How can MHI claim to be working in Congress to enact beneficial reforms for the HUD Code industry when they are simultaneously trying to effectively slow-roll reforms that have already been mandated by Congress as part of DTS?

Conclusion: There can be no legitimate or acceptable private explanation or excuse by MHI behind closed doors for the predicament that they’ve placed the industry in with this action.  Instead, the inherent hypocrisy must be exposed and openly debated.”

  

MHI, Clayton and their allies have ducked such debate before.  The memo’s commentary and analysis draws to a conclusion with the words, “See the full article below.” That article by Housing Wire said the following, and is provided under fair use guidelines that apply for media.

 

FHFAFederalHousingFinanceAgencyDailyBusinessNewsMHProNews

Shown for illustration purposes, this isn’t directly related to Housing Wire’s report.

Housing industry to FHFA: Go slow on GSE reform

Letter encourages agency to make affordable housing a priority

March 6, 2019

By Kelsey Ramírez

 

Talk of housing reform is heating up, and now several members of the housing industry are encouraging the Federal Housing Finance Agency not to go too fast, and to make sure affordable housing remains a priority throughout the process.

 

Many key members of the housing industry sent a letter to the FHFA, encouraging it to build on the current structure of the government-sponsored enterprises Fannie Mae and Freddie Mac.

 

“As the Federal Housing Finance Agency (FHFA) begins its next chapter under new leadership, our organizations seek to emphasize the vital role that Fannie Mae and Freddie Mac, the Government-Sponsored Enterprises (GSEs), currently play in the mortgage market,” the letter, addressed to FHFA Acting Director Joseph Otting, said. “There is a unique opportunity today to maintain and build on important progress that has already been achieved in reforming the operations of the GSEs since the financial crisis.”

 

The letter states that GSE reform and an end to the conservatorship is ultimately necessary in order to ensure the safety and soundness of the housing market.

However, the letter encourages policymakers to act slowly and carefully.

 

“Any efforts to meaningfully change the GSEs’ market presence must be undertaken carefully, with vigilant monitoring and frequent recalibration (if necessary) to avoid disruptions to the flow of mortgage credit into the single-family and multifamily real estate markets,” it states. “Efforts to reduce the GSEs’ footprint should not move forward unless there is compelling evidence that the private market is able to assume an expanded role.”

 

The housing industry argued that GSE reform should accomplish two key objectives:

 

1. Preserving what works in the current system

2. Maintaining stability by avoiding unintended adverse consequences for borrowers, lenders, investors or taxpayers.

 

“Recognizing the vital role that the GSEs currently play, it is critical that any administrative reforms do not disturb essential functions in the secondary mortgage market,” the letter said. “Policymakers must take great care that actions to institute reforms to the GSEs are prudently developed and implemented over a sensible time horizon.”

 

The letter asks that housing finance reform maintain the 30-year fixed-rate mortgage in the single-family market. It also asks that the GSEs still be required to meet the needs of underserved markets and support affordable housing.

 

“We urge policymakers to take these principles into account to ensure that access and affordability are preserved under the current, and any future, housing finance regime,” the letter concludes.

 

The Senate Committee on Banking, Housing and Urban Affairs recently voted to advance the nomination of Mark Calabria as director of the FHFA to a full Senate vote.

 

Previously, Calabria famously called for the end of the conservatorship of Fannie Mae and Freddie Mac. Click here to read more about what Calabria as director of the FHFA would mean for the future of the GSEs.

 

Now, many think that GSE reform could be on the verge of becoming a reality.

 

The letter was signed by: the Asian Real Estate Association of America, the Consumer Federation of America, the Consumer Mortgage CoalitionEnterprise Community PartnersHabitat for Humanity International Leading Builders of AmericaLocal Initiatives Support Corporation Make RoomManufactured Housing Institute Mercy Housing, the Mortgage Bankers AssociationNareit, the National Apartment Association, the National Association of Affordable Housing Lenders, the National Association of Hispanic Real Estate Professionals, the National Association of Home Builders, the National Association of Real Estate Brokers, the National Association of Realtors, the National Community Stabilization Trust, the National Council of State Housing AgenciesNational Housing ConferenceNational Housing Trust, National League of Cities, the National Multifamily Housing Council, The Real Estate Roundtable, the Real Estate Services Providers CouncilStewards of Affordable Housing for the Future and Up for Growth Action.

 

Click here to read the letter in full.

 

—- End of Housing Wire article sent by confidential source to MHProNews —-

DUTYtoServePaulBarrettoFannieMaeManufacturedHousingIndustryDailyBusinessNewsMHProNews550

It must be recalled that Fannie Mae’s Paul Barretto told MHProNews in front of dozens of industry professionals that neither 21st Mortgage Corp, nor Vanderbilt Mortgage and Finance (VMF) provided data to the GSEs to help them launch a chattel loan program. By contrast, other MHI member lenders did. That begs the question, why did the Berkshire Hathaway brands work to foil lending on ‘regular’ manufactured homes, while diverting GSE lending to the Clayton Homes backed “new class of homes?” MHI and official voices in Knoxville are mute on those types of #NettlesomeThings questions. http://www.mhpronews.com/blogs/daily-business-news/fannie-maes-paul-barretto-news-making-remarks-in-tunica/

 

Additional Concerns This MHI Memo Raises?

To set the context for this analysis, a similar prior case that also involved lending will be recalled. 

In 2015, MHProNews’ publisher – acting on a tip from within MHI – publicly called out Manufactured Housing Institute (MHI) President and CEO Richard ‘Dick’ Jennison and MHI SVP Lesli Gooch for attempting to deliberately mislead their own members. The subject of the alleged deception was a Senate hearing with then Consumer Financial Protection Bureau (CFPB) Director Richard Cordray regarding the MHI backed Preserving Access to Manufactured Housing Act.  Recall that Preserving Access was never passed.

But at that time, MHI had issued an emailed statement to their members that was accurate in quoting then Senator Joe Donnelly (IN-D), but failed to mention the pushback from Cordray, or other key parts of the full discussion. Those omissions by MHI to their members completely changed the meaning and context for what had actually occurred in that hearing. MHI postured progress, but in fact no progress had occurred. The MHI source provided CSPAN video to back up their contention that MHI was deliberately misleading their own members, and through MHI state affiliates, the Arlington, VA based trade group was misleading the industry at large.

 

JasonBoehlertManufacturedHousingInstituteSeniorVPLogoMHIlogoQuoteMHProNews

In hindsight, which Warren Buffett reminds us that the rear view mirror is clearer than the windshield, it is now clear that the MHI plan for Preserving Access was filled with contradictions and purported head fakes. It didn’t matter to the powers that be if Preserving Access passed or not. But as the Jason Boehlert quote above reminds readers, it wasn’t expected to pass. So why did MHI spend millions in the effort? http://www.mhmarketingsalesmanagement.com/blogs/industryvoices/2012-election-results-and-coming-lame-duck-session/

 

Based upon the evidence presented, which MHI did not dispute, a column by Tony Kovach called Jennison and Gooch out for their alleged attempt at the deception of the industry and the Arlington, VA based trade association’s own members, and asked for their resignation and or termination. But instead, then MHI Chairman Tim Williams, who is president and CEO of Berkshire Hathaway owned 21st Mortgage Corp, arranged for a vote of confidence in Jennison.

 

VicePresidentMikePenceWifeKarenHandOverHeartPledgeColts49ersGameWashingtonTimesDailyBusinessNewsMHProNews

Notice. One can agree or disagree with 21st Mortgage CEO and prior MHI Chairman Tim Williams’ presentation, from which the slide above was taken with permission, while still questioning how it came to be that Williams was being intellectually at odds with Berkshire Hathaway Chairman, Warren Buffett.  Why were millions spent, when Buffett was clearly ‘tight’ with then President Barack Obama? Why spend millions lobbying for Preserving Access, when then President Obama said he’d veto it if it ever hit his desk?

 

WarrenBuffettBarackObamaWikipediaMotherJonesDailyBusinessNewsMHProNews

Buffett was a strong supporter of candidate and President Obama. Obama in turn was a strong support of Dodd-Frank, and not changing the CFPB. See related, linked below. http://www.mhpronews.com/blogs/daily-business-news/manufactured-housing-institute-vp-revealed-important-truths-on-mhis-lobbying-agenda/

 

Rephrased, instead of holding those two senior MHI leaders accountable for deception, Jennison and Gooch were defended and retained by the direct and specific intervention of Williams, Clayton Homes representative on the executive committee, and others who align with them.

The Daily Business News on MHProNews has noted more than once that Jennison and Gooch were given bonuses for their work, according the federal document filings by MHI and confirmed by MHI’s CEO Jennison. Again, MHI staff nor MHI Executive Committee leaders have not denied those bonus payments to Jennison, Gooch, or others.  You can access the report below by clicking on the hot-linked text-image box. 

 

Bonuses, Bonuses! Manufactured Housing Struggles During Affordable Housing Crisis, While Top MHI Staffers Get Bonuses

 

The letter reported by HousingWire and signed onto by MHI to FHFA Acting Director Joseph Otting, is arguably a double cross of the claims that MHI has been making even recently to the industry.  When MHI claims that they are acting to expand lending on manufactured housing, it is arguably demonstrably untrue.  See the “Illusion of Motion” further below. 

Without contradicting the source that sent the memo and tip above, the scenario that source describes is arguably far more corrupt than that DTS committee source alleges.

MHProNews will be asking for MHI, MHARR, and federal officials to react to this report now that it is published.

But equally important, this is the latest piece of evidence that seems to confirm what Marty Lavin, JD, former MHI member and award winner, previously said to MHProNews. Namely, that the so-called big boys get their way, and the rest of the industry only benefit from MHI when the big boy interests happen to align with independents.

   The manufactured home industry is struggling during an affordable housing crisis.

   There is mounting evidence that the Omaha-Knoxville metro powers have purportedly weaponized MHI and other operations in a manner that is contrary to the interests of the vast majority of other independent firms in the industry.

   DTS was clearly diverted to the “new class of homes” lending that MHI sources have told MHProNews was initiated by Clayton Homes. Leaders from MHI only member production firms have complained that this is an abuse of the industry’s most affordable housing, and that the ploy is aimed to benefit Clayton while harming others.

MHProNews will continue to unpeel the onion as more details emerge. See the related reports below, for more on Duty to Serve and finance related issues.

ManufacturedHousingProNewsMHProNewsConfidentialTipsDocumentsNews

To report a news tip, click the image above or send an email to iReportMHNewsTips@mhmsm.com – To help us spot your message in our volume of email, please put the words NEWS TIP in the subject line.

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SoheylaKovachDailyBusinessNewsMHProNewsMHLivingNewsSubmitted by Soheyla Kovach to the Daily Business News for MHProNews.com. Soheyla is a managing member of LifeStyle Factory Homes, LLC, the parent company to MHProNews, and MHLivingNews.com.

 

 

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