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Posts Tagged ‘chattel loans’

Plot Twist – Duty to Serve – Freddie Mac CEO Layton Called to Accountability w/Congressional, Administration Leaders Over New Manufactured Home Lending Revelations

March 5th, 2018 Comments off

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The Duty to Serve (DTS) program for manufactured housing industry retailers, communities and potential home buyers took what may be a problematic twist in news revealed, according to a memo obtained by the Daily Business News.

 

The memo to Donald H. Layton, Chief Executive Officer, Freddie Mac – one of the largest lenders in the nation, cc’d Congressional leaders and Trump Administration officials as follows:

  • Hon. Michael Crapo
  • Hon. Sherrod Brown
  • Hon. Jeb Hensarling
  • Hon. Maxine Waters
  • Hon. Jeff Sessions
  • Hon. Mick Mulvaney
  • Hon. Gary Cohn
  • Hon. Melvin Watt

The memo said that, “At a February 26, 2018 telephone conference meeting of the MHIT, Freddie Mac representative, Ms. Simone Beatty, indicated, for the first time, that Freddie Mac plans to pursue implementation of a “pilot program” — on an expedited basis (i.e., during June and July 2018) — for loans on an undefined “new class” of manufactured homes, apparently based on the exclusionary (i.e., limited to MHI members) / proprietary MHI “new class” of manufactured home research and development activity.”

The MHIT meetings are supposed to be confidential, sources tell MHProNews. 

But when the Daily Business News inquired, how can an important public policy matter like this that impacts thousands of businesses be kept confidential?’ no reasonable response has come forward from any source yet.

Secrecy over DTS regulations defies common sense.  MHProNews has called on the Federal Housing Finance Agency (FHFA), the Government Sponsored Enterprises (GSEs) and the Manufactured Housing Institute (MHI) to produce all minutes from all meetings, for complete transparency in a process that critics say has notably provided Berkshire Hathaway lenders with a windfall every year that the program has been delayed.

 

Per the memo, obtained today by MHProNews, and linked here and here as a download, says in part:

 

“...a participant in Freddie Mac’s “Manufactured Housing Initiative Task Force” (MHIT), has learned that Freddie Mac apparently plans to divert an unspecified portion of its already minimal and wholly inadequate support of the manufactured housing market under DTS to a so-called “new class” of manufactured homes which is currently being researched and developed on an exclusionary, proprietary basis by the Manufactured Housing Institute (MHI), under the direction and authority of a control group comprised, in relevant part, of executives of the industry’s three largest manufacturers.”

As noted, the memo CC’d key Washington leaders, concludes by saying:

For Freddie Mac, after ten years of inaction on DTS, followed by a blatantly inadequate DTS implementation plan, to now even consider diverting any aspect or portion of DTS to a “new class” of proprietary, high-priced, non-affordable manufactured home, is indefensible, inexcusable, in direct defiance of DTS, and unacceptable,” said Mark Weiss, President and CEO of the Manufactured Housing Association for Regulatory Reform (MHARR). Weiss says MHARR will take any and all steps necessary to see that this rerouting of DTS monies won’t go to the controversial, so-called ‘new class’ of manufactured homes.

FHFA Publishes Fannie Mae’s and Freddie Mac’s Underserved Markets Plans for Duty to Serve (DTS) Program

Once more, the link to the full memo is here, or is available here as a downloadable PDF of the document provided. ## (News, analysis, and commentary.)

Related:

‘Over Target’ Reactions, WHA Exec (ret) Ross Kinzler, Won’t Defend MHI Policies & Points to Prior MHI Failure

Keith Anderson, CEO Champion Homes, MHI ‘New Class’ Monopoly Concerns Memo, ‘Harms Owners, Independents’

Wisconsin Housing Alliance – an MHI ‘Affiliate’ – Amy Bliss’ Messages Raise New Anti-Trust Issue

Duty To Serve, “Complete Waste of Time” per Tim Williams, CEO/21st Mortgage; POTUS Trump, Warren Buffett Insight$

Manufactured Housing’s “Trojan Horse”

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HUD Code Manufactured Home Production Increases, January Report

March 6th, 2017 Comments off
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Credits: MHARR, HUD.

Washington, D.C., March 6, 2017 – The Manufactured Housing Association for Regulatory Reform (MHARR) tells MHProNews that, according to official statistics compiled on behalf of the U.S. Department of Housing and Urban Development (HUD), year-over-year manufactured housing industry production increased substantially during January 2017.

These just-released statistics indicate that HUD Code manufacturers produced 7,827 homes in January 2017, a 33.5 percent increase over the 5,862 HUD Code homes produced during January 2016.

MHARR says that the steady increase in HUD Code manufactured housing production since 2011 is “clear and indisputable evidence that manufactured homes not only continue to serve a vital role in the nation’s housing market, but that today’s high-quality manufactured homes are attracting ever-larger numbers of homebuyers.

MHARR’s analysis of the official industry statistics shows that the top ten shipment states from the beginning of the industry production rebound in August 2011 through January 2017, with cumulative, monthly, current year (2017) and prior year (2016) shipments per category as indicated are:

The latest information for January 2017 results in no changes to the cumulative top ten list.

MHARR has long maintained that Fannie Mae and Freddie Mac cannot meet the mandate of “Duty to Serve” (DTS), and cannot adequately serve the manufactured housing market and the millions of moderate and lower-income consumers who rely on affordable, non-subsidized manufactured housing without manufactured housing chattel lending.

The full MHARR report is linked here.

For more commentary from MHARR, including Ben Carson’s confirmation as HUD Secretary, click here. ##

 

(Image credits are as shown above.)

 

rcwilliams-writer75x75manufacturedhousingindustrymhpronews

RC Williams, for Daily Business News, MHProNews.

Submitted by RC Williams to the Daily Business News, MHProNews

MHARR to FHFA: Duty to Serve Requires Material and Expedited Support for MH Chattel Loans

February 10th, 2017 Comments off
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Credits: Embassy Suites, MHProNews, Wikipedia.

Washington, D.C., February 9, 2017 – The Manufactured Housing Association for Regulatory Reform (MHARR) tells MHProNews that, at a Federal Housing Finance Agency (FHFA) “listening session” in Washington, D.C. on February 8, 2017, President and CEO Mark Weiss reiterated and underscored previous remarks by MHARR representatives.

Weiss asserted that the Agency’s December 29, 2016 “Duty to Serve Underserved Markets” (DTS) rule and related “Evaluation Guidance” for DTS implementation plans do not and cannot comply with the essential legislative mandate of DTS and are, therefore, unacceptable.

MHARR says that the meeting opened with an appearance by FHFA Director Melvin Watt, who thanked DTS stakeholders for their participation and information provided regarding specific aspects of DTS’ implementation.

Watt also announced that the February 17, 2017 deadline for written responses to a detailed Request for Information (RFI) published by FHFA specifically concerning manufactured housing chattel loans, would be extended until March 21, 2017, which appeared to be a response to President Donald Trump’s regulatory “freeze” order, enacted on January 20, 2017.

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Credit: Scott Lewis, Creative Commons.

During the meeting, MHARR detailed the specific legal and policy bases for its position that any DTS implementation, in order to comply with the express directive of Congress as set forth in the Housing and economic Recovery Act of 2008 (HERA), must provide for a program of material and expedited Government Sponsored Enterprise (GSE) securitization and secondary market support for manufactured housing chattel loans, which comprise 80% or more of the entire manufactured housing market.

DTS was not an invitation for the GSEs to maintain the status quo for years or decades more,” said Weiss.

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M. Mark Weiss. Credit: MHProNews.

DTS does not stand for ‘Duty to Study.’

Weiss also commented on Director Watt’s actions.

As indicated by Director Watt’s action to extend the comment deadline for FHFA’s pending RFI, the January 20, 2017 regulatory ‘freeze’ order put in place by President Trump, by its express terms, also applies to the DTS final rule and subsequent Evaluation Guidance” said Weiss.

FHFA should use the additional time provided by this order to correct its approach to DTS and, with the additional information and input that it has received from stakeholders, revise both the final rule and its Evaluation Guidance to provide for an expedited path to material, mandatory GSE securitization and secondary market support for manufactured housing chattel loans.”

The full MHARR statement is available for Daily Business News readers here.

The full presentation from Weiss to the listening session is linked here. ##

(Image credits are as shown above.)

rcwilliams-writer75x75manufacturedhousingindustrymhpronews

RC Williams, for Daily Business News, MHProNews.

Submitted by RC Williams to the Daily Business News for MHProNews.

A Solution for the Dysfunctional Home Loan Market?

January 25th, 2017 Comments off
ASolutionfortheDysfunctionalHomeLoanMarketcreditJackGuttentag-postedtothedailybusinessnewsmhpronewsmhlivingnews

Credit: Jack Guttentag.

Mortgages are a complicated thing.

Between bad loan quotes, potentially having to commit in advance of information verification, and “Lock Abuse,” which is a lock price that is above the lender’s posted price at the time of commitment, the home loan market is prime for a change.

Jack Guttentag, also know as “The Mortgage Professor” agrees.

With a new administration in Washington, D.C., the time is ripe to reconsider some fundamental features of our housing-finance system,” said Guttentag.

ASolutionfortheDysfunctionalHomeLoanMarketcreditWikipedia-postedtothedailybusinessnewsmhpronewsmhlivingnews

Jack Guttentag. Credit: Wikipedia.

One weakness is a dysfunctional market structure in which borrowers often overpay, and may not get the type of mortgage that best meets their needs.

In an article published in the Seattle Times, Guttentag also makes a statement that many in the manufactured housing industry would be inclined to agree with.

Note that the mandatory disclosures now administered by the Consumer Financial Protection Bureau (CFPB) prevent none of these abuses.

The solution that Guttentag recommends involves the creation of a multi-lender website, certified by an agency such as the U.S. Department of Housing and Urban Development (HUD), that would allow users to compare posted prices of multiple lenders, uniformly formatted, in one place.

While there are no legal barriers to the creation of such a tool now, it is extremely difficult for such a site to distinguish itself from fake versions, and to counter the high-powered merchandising of lenders with name recognition,” said Guttentag.

The need is for certification by a known trustworthy source that a site has the features necessary to provide borrowers with competitive prices and selection guidance.”

With a certified site, Guttentag suggests a set of features that would solve current problems.

  • Complete prices posed directly to site

Three or more lenders provide posted prices to the site directly from each lender’s internal pricing system, without the intermediation of loan officers,” said Guttentag.

Prices should cover all lender charges and all price-related features of adjustable-rate mortgages.

  • Live prices

Whenever a participating lender posts new prices on its own site or for its loan officers, prices on the multi-lender site change as well,” said Guttentag.

  • Fully adjusted prices, anonymity, and price monitoring
ASolutionfortheDysfunctionalHomeLoanMarketcreditJackGuttentag2-postedtothedailybusinessnewsmhpronewsmhlivingnews

Credit: The Mortgage Professor.

The site should have the capacity to adjust prices from each lender for all the transaction characteristics that affect price,” said Guttentag.

Borrowers should be able to shop prices on the site without revealing contact information to lenders until a lender has been selected, and be able to monitor the posted prices of the lender they select until their price is locked.

  • Lender selection and decisions support

Borrowers select the lender, not the site,” said Guttentag.

Borrowers also need to have access to guidance in making decisions about the type of mortgage, and the combination of upfront fees and interest rate that best meets their needs.

Guttentag makes it clear that his list is designed to be illustrative and would need to be further developed by a certifying agency.

He also sees real hope in the proposed solution.

The burden on the agency that does it would be very small, however, while the potential benefits are enormous,” said Guttentag.

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Credit: Scott Lewis, Creative commons.

As Daily Business News readers are aware, loans for the MH industry are unique, as they are largely so-called “chattel loans” – also known as “home only” or “personal property” loans.

The Federal Housing Finance Agency (FHFA) finalized a rule on December 13th that creates a “duty to serve” for Fannie Mae and Freddie Mac, and is expected to have an impact on manufactured home loans. That story is linked here. ##

(Image credits are as shown above.)

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RC Williams, for Daily Business News, MHProNews.

Submitted by RC Williams to the Daily Business News for MHProNews.

Dodd-Frank Act Remains a Stumbling Block to Manufactured Home Lending

May 30th, 2016 Comments off

mhi photo credit mh under productionSteve Sinovic, writing in abqjournal, says sales of manufactured home sales are up, a popular and affordable housing choice for New Mexicans, some eighteen percent of whom live in manufactured housing. However, financing costs are being driven up by the Consumer Financial Protection Bureau (CFPB) implementation of the Dodd-Frank law. Additionally, the two government sponsored enterprises (GSEs), Fannie Mae and Freddie Mac, are reluctant to deal in manufactured home personal property loans, thereby depriving MH sales of a secondary market. This means that lenders have to maintain the loans on their books and thus have a somewhat higher interest rate than conventional housing.  

Even with that rate difference, most save money on manufactured home payments, as MHLivingNews has often documented, as in the example linked below. 

Renters’ Nation: The Dark Side of Dodd-Frank and Its Impact on Affordable Housing

Paul Stull, president and CEO of the New Mexico Credit Union Association, is joining with other credit unions in lobbying to make more low interest loans available to families of more modest means who want to purchase a manufactured home (MH). He noted a provision in the Consumer Financial Protection Bureau (CFPB) that results in closing costs on a manufactured home similar to that of a large traditional-built home.

We are trying to get the CFPB to realize that one size does not fit all,” said Stull of what he considers regulatory overreach. “The same rules that apply to million-dollar homes” apply to a new MH selling for $40,000 in New Mexico.

Dave Woodruff, president and CEO of Los Alamos-based Zia Credit Union, said affordable housing in the northern New Mexico region he serves is challenging because of lower incomes and limited available land. He lost 15 to 20 loans in the last year because they were not secured by land. It ‘s not that the applicants were especially risky, but rather because of CFPB rules.

The absence of credit unions and community banks willing to make MH loans has concentrated 90 percent of MH lending in the hands of a few specialized MH lenders: Triad Financial, Cascade, Clayton Homes/Vanderbilt Mortgage and Finance, 21st Mortgage Corp. and San Antonio Credit Union’s CU Factory Built Lending and Mountainside Financial Service, as the Manufactured Housing Institute (MHI) tells the abqjournal.   

While the thrust of Sinovic’s report was insightful, it also cites outdated and inaccurate information that has since been contradicted by Richard Cordray, U.S. Senators, consumers and MH Lenders – which will be featured in a new video report on MHLivingNews.  MHPros and investors should aquaint themselves with a timely Op-Ed by Titus Dare, on why the GSEs are not all in on Duty to Serve being applied to chattel lending.

Duran lauds the finance companies willing to take the risk for the borrowers who have less than sterling credit, but realize the advantage of a manufactured homes over apartments. “They are building their credit. They are building equity,” said Duran of buyers. “A manufactured home is a great way to get in on the ground level.”

For an interview with Triad Financial’s Don Glisson, Jr. that has insights on why MH lending rates tend to be higher, please click here. ##

(Photo credit: Manufactured Housing Institute–manufactured homes under construction)

matthew-silver-daily-business-news-mhpronews-comArticle submitted by Matthew J. Silver to Daily Business News-MHProNews.

MHARR, MHI Spar over FHFA & Duty To Serve Manufactured Housing via GSE Chattel Lending

April 29th, 2016 Comments off

federal_housing_finance_agency__logoOn April 26, 2016 the Federal Housing Finance Agency (FHFA) held a roundtable discussion with manufactured housing industry leaders, inviting those who commented on the proposal, to get their input on the FHFA’s proposed “Duty to Serve” rule, according to the Manufactured Housing Institute‘s (MHI) Housing Alert to MHProNews.

Lesli Gooch, Senior Vice President of Governmental Affairs at the MHI, said, “Requiring the government-sponsored enterprises (GSEs) to purchase chattel loans as part of their statutory Duty to Serve Underserved Markets is the single most important step the FHFA can take to improve access to mortgage credit for manufactured housing consumers.”

The FHFA’s Duty-to-Serve rule would require the GSE’s to support low-income housing for three underserved housing markets, one of which would “bring to manufactured housing consumers many of the same benefits available to consumers with conventional mortgages.” The other two markets are affordable housing preservation, and homeownership opportunities in rural areas.

The Manufactured Housing Association for Regulatory Reform (MHARR), noting previous undocumented closed door meetings with unknown consequences, describing the meeting as hastily called with a preponderance of MHI representatives (11 of the 18 attendees were from MHI) and officials from the largest businesses, says it was a “whitewash” that offers but a glimmer of hope for DTS chattel lending. MHARR states while MHI affiliated finance arms support DTS, it wants to impose restrictions on lender participation in any DTS chattel program. This could restrict competition and continue the high interest rates,

What MHARR notes was most unusual, the meeting did not include anyone from consumer groups, or from the GSEs who are responsible for implementing the DTS rule. The GSEs – Fannie Mae and Freddie Mac – have a history of opposing the securitization of MH chattel loans, but they were not in attendance.

While MHI had a statement that Lesli Gooch read, as noted above, MHARR had a list of the hows, whys and wheres of the importance of serving low income residents that Congress had intended with its Duty-to Serve directive. “Excluding manufactured home chattel loans from DTS would continue to force low and lower-income purchasers, in particular, into the higher-cost loans currently provided by the industry’s two dominant finance companies, says MHARR.  Their full statement on this topic is linked here. MHI has requested that their full statements not be included in MHProNews reports.

MHARR’s concerns are indirectly echoed by a previous report by the National Mortgage News, which indicated last fall that the FHFA getting the GSE’s to do chattel loans was all but a done deal.  They cited support by consumers groups as well as the MH industry’s associations as reasons for their report.  

It was precisely that widespread support for this rule by interested stakeholders that caused NMN to project the adoption of chattel lending by the GSEs, and why MHARR keeps raising the issue as to what happened behind closed doors that may have caused this deal to go sideways? MHARR has repeatedly asked FHFA to release the minutes of all meetings by the FHFA and any other party, including consumer groups and MHI.

Finally, MHARR warns if the FHFA does not “include a robust and competitive program for manufactured home chattel loans within a final DTS ruleCongress will be asked for direct remedial legislation or legal action may be taken. Congress has done its job. The FHFA must now do its work.”

The FHFA did not have a timetable for the issuing of the final rule. MHProNews has long felt that this ought to be a simple case of enforcing the law, which requires the GSE’s to make such loans. The Daily Business News will continue to track this topic.  ##

(Image credit: Federal Housing Finance Agency)

matthew-silver-daily-business-news-mhpronews-comArticle submitted by Matthew J. Silver to Daily Business News-MHProNews.

MHI’s Daily tells Congress MH is Affordable Housing, Give us a Green Light

March 24th, 2016 Comments off

house_financial_services_committee__facebook credithouse_____financialservices_dot_house_dot_gov__creditMHI Board of Directors Member F. R. Jayar Daily told a congressional subcommittee on housing and insurance that “Manufactured homes are the most affordable homeownership option in the market today,” but the regulatory burdens and the lack of a secondary market for chattel loans reduce financial access for millions of Americans who seek homeownership.

Testifying before the U.S. House Financial Services Committee’s Subcommittee on Housing and Insurance entitled “The Future of Housing in America: Government Regulations and the High Cost of Housing,” he said the industry is regulated by the Department of Housing and Urban Development (HUD), but the outdated regulations add to the cost of the home.

The housing finance system does not meet the needs of borrowers, as MHI tells MHProNews. Even FHA’s chattel loan program does not work—there was only $24 million in endorsements in 2015, and 80 appraisers in the whole country. The HOEPA provisions governing small-balance loans, and the definitions of a loan originator are also holding back the possibility for home ownership.

He said the duty-to-serve provision was included in the 2008 Housing and Economic Recovery Act, but only now has a proposal been made for the possibility of a secondary market for chattel loans with Fannie and Freddie.

Noting that the homes are required to be on steel chassis, which limits innovation, Daily said the Manufactured Housing Construction and Safety Standards Act of 1974, “legislation that brought the industry into the modern era,” is outdated. As an example, HUD has stringent production rules, quality assurance and dispute resolution systems under the HUD Code, yet the industry remains under the federal lemon law.

He said, we need “to alleviate the challenges facing working families, seniors, and young professionals seeking quality affordable homeownership opportunities.” ##

(Image credit:financialservices.gov)

matthew-silver-daily-business-news-mhpronews-comArticle submitted by Matthew J. Silver to Daily Business News-MHProNews.

 

MHI Raps FHFA’s Duty to Serve Rule for not Aiding Individual Homebuyers

March 19th, 2016 Comments off

mortgage andyenstallblog creditIn a letter to the Federal Housing Finance Agency (FHFA), the Manufactured Housing Institute (MHI) is pressing the government-sponsored enterprises (GSEs) to back chattel loans, which apply to manufactured homes (MH) not secured by real estate, according to nationalmortgagenews.

Requiring the GSEs to purchase chattel loans as part of their statutory Duty to Serve is the single most important step the FHFA can take to improve access to mortgage credit for manufactured housing consumers,” MHI senior vice president of legislative affairs Lesli Gooch said in a news release. “MHI’s written comments provide a roadmap on how FHFA and the GSEs can safely and profitably purchase these loans.”

Manufactured housing is an underserved market that the Housing and Economic Recovery Act (HERA), passed in 2008, requires GSEs to serve. With chattel loans comprising 70 percent of the MH market, MHI says the Duty to Serve Credits should extend to chattel loans, as long as they meet underwriting standards and provide consumer protections, as MHProNews has learned.

While the FHFA’s proposed Duty to Serve rule incentivizes states to reform titling laws so chattel loans can be converted into real estate loans, the rule only requires the GSEs to assist in the financing of manufactured home communities with fewer than 150 home sites, not individual chattel loans.

Although the FHFA did suggest setting up a pilot program for the chattel loans, the rule as proposed would not make financing more affordable for individual homeowners.

Gooch wrote, “If implemented, MHI’s recommendations will bring to manufactured housing consumers many of the same benefits available to consumers with conventional mortgages, namely greater access to credit with potentially more affordable financing, more lenders in the market, and the ability to refinance as market conditions change.” ##

Editor’s Notes:  

(Image credit: andyenstallblog)

matthew-silver-daily-business-news-mhpronews-comArticle submitted by Matthew J. Silver to Daily Business News-MHProNews.

Rep. David Scott: GSEs should Purchase Chattel Loans

March 5th, 2016 Comments off

david_scott_dot_house_.govIn a letter to Melvin Watt, Director of the Federal Housing Finance Agency (FHFA), Rep. David A. Scott (D-GA) reminds Dir. Watt the Housing and Economic Recovery Act (HERA) pinpointed manufactured housing (MH) as an underserved market. Noting the importance of MH as a source of homeownership for millions of Americans, he says homeowners pay more to finance their homes than do buyers of site-built homes, and sometimes loans are just not available, as MHProNews understands..

As the agency is set to finalize the GSEs’ (government-sponsored enterprises) Duty-to Serve (DTS) rule, he urges Dir. Watt to require “the GSEs to significantly increase their support of manufactured housing through the purchase of chattel loans.”

Citing Census Bureau statistics, he says the income of manufactured homeowners is almost 50 percent less than that of all homeowners, and that MH accounted for approximately 12 percent of all new single-family homes sold in the U S. in 2013. He writes, “Of this, manufactured housing represented more than 80 percent of all new homes sold under $125,000, 64 percent of new homes sold under $150,000 and 35 percent of new homes sold under $200,000.”

He states because MH are financed as chattel—70 percent of all MH are thus financed—buying an MH can be expensive. He writes that the Consumer Financial Protection Bureau (CFPB) says that the cost of an MH sited in a manufactured home community (MHC) could be as much as 50 to 500 basis points more than a site-built home.

If the proposed DTS rule requires the GSEs to create a secondary market for chattel loans, the opportunity for homeownership will increase for many more working class families.

For comments on the Federal Housing Finance Agency’s proposed GSEs Duty to Serve rule by Michael A. Parham, JD, click here. ##

(Photo credit: David Scott.house.gov–Rep David A. Scott)

matthew-silver-daily-business-news-mhpronews-comArticle submitted by Matthew J Silver to Daily Business News-MHProNews.

Doug Ryan: Expand the Lending Opportunities for MH Buyers

February 23rd, 2016 Comments off

manuf home royal homes of raleigh nc creditManufactured housing (MH) is an inexpensive path to the American Dream of homeownership, said Doug Ryan, Director of Affordable Homeownership at the Corporation for Enterprise Development (CFED).  But he claims there is a lack of competition among the few MH lenders that exist—a market dominated by Clayton Homes, which builds, markets – and through related firms – finances MH.  Thus it does not have to rely on a secondary market.  According to Ryan, that vertically integrated operation makes the path to more ownership of quality affordable manufactured homes more difficult.

In an op-ed in American Banker, Time to End the Monopoly over Manufactured Housing, Ryan says the government-sponsored enterprises (GSEs), Fannie Mae and Freddie Mac should participate more in buying chattel loans. That might happen, due to a proposal from the Federal Housing Finance Agency (FHFA) that the GSEs would get credit for “duty to serve” underserved housing markets, like making loans to MH secured by real estate.

While not including chattel or “personal property” (home only) loans, the proposal advocated by CFED and others includes a move that encourages states to change their titling laws to recognize MH as real estate. If titling reform did go through, they claim, it would open the field up to more lenders, and present more competition for Clayton and their affiliated lenders.  

The move to magically dub “home only” loans as “real estate” is opposed by MH lenders and by third party MH financing experts, such as Marty Lavin, JD, because it is too costly and burdensome for lenders in practice.  Lavin and others assert that would drive out more manufactured home lending, rather than create more of it.

While Freddie Mac has recently made loans to acquire manufactured home communities (MHCs), as MHProNews  has previously reported, an additional part of the proposal would require the largest GSE mortgage companies to finance the purchase of MHs as chattel loans, which Ryan says would begin the development of a secondary mortgage market for MH.

Ryan said Clayton finances homes through lenders owned by parent company Berkshire Hathaway, and has no need for Fannie and Freddie. Ryan claims the industry’s largest national trade association, the Manufactured Housing Institute (MHI), and Clayton both oppose the inclusion of chattel loans in the rule.  This, asserts Ryan, prevents owners of manufactured homes on leased land from building equity.

What Ryan fails to mention is that MHI and the Manufactured Housing Association for Regulatory Reform (MHARR) are both working to get chattel lending included by FHFA’s Duty to Serve (DTS) instructions to the GSEs. CFED’s point man on manufactured housing also fails to mention that his organization has admitted to what is a conflict of interest on issues relating to the CFPB and MH lending.

Ryan also fails to mention that federal regulations have driven out personal property lending that previously existed for manufactured homes, so the very policies CFED advocates for would actually make MH lending even tougher.

Clayton Homes/Berkshire Hathaway have been hammered repeatedly by slanted and misleading by theSeattle Times/BuzzFeed  advocacy journalism “reports” charging discrimination, predatory lending, exploiting and even “threatening” borrowers.  Ryan and his allies – such as Ishbel Dicken’s led National Manufactured Home Owners of America (NMHOA) – have promoted such negative media, in an effort to undermine the progress made on passage of the Preserving Access to Manufactured Housing Act (HR 650/S 682).

MHLivingNews  has outlined many of the issues relating to mistaken points made by Doug Ryan and others in a video and related article, found here. The video quotes CFPB’s Richard Cordray, HUD’s Julian Castro and Senator Bob Corker speaking on MH as an affordable housing solution, highlighting facts on MH lending that Ryan glosses over or blatantly ignores.

MHProNews has two upcoming video reports that will shed additional light on financing and quality affordable living issues that Ryan, Seattle Times, PBS NewsHour and those in league with CFED ignore. Marty Lavin’s in depth discussion on this topic, is linked here.  

Ryan’s Op-Ed, says MHProNews publisher L. A. ‘Tony’ Kovach, “badly misses the mark on the reality of manufactured home lending; whatever his intentions or motivations, Doug Ryan has proven that he doesn’t know what he’s talking about, as he essentially admitted in an interview with Jan Hollingsworth, that MH finance expert Dick Ernst is better informed on these topics,” found in an in-depth report linked here.

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The full GAO report on Manufactured Housing is linked from the image above or can be downloaded here.

Kovach reminds Daily Business News readers that Ryan has never denied any of the facts in reports MHLivingNews or MHProNews have published, and says if Ryan was correct and confident in his stance on these MH lending issues, he’d take up the offer to debate him and Ishbel Dickens.

Kovach commends Ryan to the extent that on paper, he and CFED are pro-MH as an affordable housing solution, while pointing out that sadly the policies Ryan and his associates advocate for via their media efforts are actually harming manufactured home owners, lenders and businesses. “The GAO’s report on manufactured housing has already documented, as have one of the GSEs’ own reports, that even with somewhat higher interest rates, MH is the lowest cost and the lowest monthly payment of any form of housing,” Kovach stated. “Modern manufactured homes are the solution to the affordable home crisis, and the path to more lending is found by allowing the free market to work and not be impeded by federal regulations and well meaning, but misguided policy advocates.” ##

(Image credit: Royal Homes of Raleigh)

matthew-silver-daily-business-news-mhpronews-comArticle submitted by Matthew J. Silver to Daily Business News-MHProNews.