Archive

Posts Tagged ‘cu factory built lending’

Pros and Cons of Licensing, How Government Regulations Can Harm Job Creation

May 25th, 2017 Comments off
ProsandConsofLicensingHowGovernmentRegulationsCanHarmJobCreationcreditYouTube-postedtothedailybusinessnewsmhpronewsmhlivingnews

Does over regulation create a caption may I environment? Credit: YouTube.

In the U.S., a number of professions and businesses are regulated to varying degrees. While some are obviously necessary, others present questions – and responses – from individuals and businesses alike, who wonder if having to play the game of “captain may I?” is meant to help or hurt them.

Research from the Brookings Institute takes a look at the logic, and the lack of it in some instances, as it relates to licensing.

It is important to realize that occupational licenses are not mere state-sponsored certificates to signal that workers have completed some level of training; occupational licensing laws forbid people from practicing in their occupation without meeting state requirements,” the Institute said in a report.

If the rationale for licensing an electrician is to protect public safety, it is difficult to see what rationale supports licensing travel guides. Yet, twenty-one states require a license for travel guides. Among these, Nevada has created the highest hurdle: a person hoping to be a travel guide in that state must put in 733 days of training and shell out $1,500 for the license.”

ProsandConsofLicensingHowGovernmentRegulationsCanHarmJobCreationcreditBROOKINGS1-postedtothedailybusinessnewsmhpronewsmhlivingnews

Credit: Brookings Institute.

Then, there’s the other side.

There can be an obvious disconnect between the strictness of licensing regulations and the potential harm to consumer safety. For example, Michigan requires 1,460 days of education and training to become an athletic trainer, but just 26 to be an emergency medical technician (EMT). In fact, across all states, interior designers, barbers, cosmetologists, and manicurists all face greater average licensing requirements than do EMTs,” said the institute.

According to the Washington Times, special-interest groups often promote state licensing to benefit themselves at the expense of entrepreneurs, small-business owners and consumers.

And, it seems that this problem has exploded.

The percentage of U.S. workers who need government permission to practice their occupation has grown from 5 percent in the 1950s to nearly 30 percent today. Studies suggest this has caused 2.8 million fewer jobs in our economy and more than $200 billion in additional annual costs for consumers.

ProsandConsofLicensingHowGovernmentRegulationsCanHarmJobCreationcreditBROOKINGS2-postedtothedailybusinessnewsmhpronewsmhlivingnews

The Brookings Institute study shows a state-by-state breakdown of licensing and implementation. Credit: Brookings Institute.

The Times points to an instance in Oregon, where licensing requirements can be enforced in ways that are unjust, and in the case of a licensing board just downright bizarre.

Recently, an Oregon resident spoke out publicly about the timing of the traffic lights in his city after his wife received a red light camera ticket. Based on calculations he had performed, he argued that the yellow light was too short.

For his trouble, he reportedly earned a $500 ticket from the state board of engineers for “the unlicensed practice of engineering.”

 

A Look from the Manufactured Housing Industry

Dodd_Frank___bloombergbusinessweek___credit postedDailyBusinessNewsMHProNews

Credit: Bloomberg.

As Daily Business News readers are already aware, job creation and economic growth are regularly noted in quarterly reports as a factor in manufactured housing sales. The adverse effects of regulation were pointed out in 2015, when award-winning writer Jan Hollingsworth recounted the story of the older gentleman, likely a farmer, in bib overalls who visited a manufactured home dealership in Kentucky.

After two hours of perusing the possibilities of different homes, he chose one. But when he asked the salesman for help in filling out the finance application, he was told federal regulations prevent manufactured home retailers from assisting customers. The man left, unhappy, and later found a salesman elsewhere who was willing to break the rules to provide the old farmer with what may be the house of his dreams.

The story highlights the incongruities written into the Dodd-Frank Act, and enforced by the Consumer Financial Protection Bureau (CFPB).

He wasn’t asking the salesman to do anything that a real estate agent doesn’t do every day. It just makes no sense at all,” said Barry Noffsinger, a regional manager for CU Factory Built Lending, one of the nation’s leading MH lenders.

BarryNoffsingerCreditMHProNews-

Barry Noffsinger, photo credit, MHProNews.

With compliance costs quadrupling in recent years for MH lenders, as Don Glisson, Jr., CEO of Triad Financial Services says, many small banks, credit unions and other MH lenders have shuttered their MH lending operations, leaving prospective buyers to rely on high interest loans, or else continue renting. ##

 

 

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

 

rcwilliams-writer75x75manufacturedhousingindustrymhpronews

RC Williams, MHProNews.

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

 

(Copyright Notice: This and all content on MHProNews and MHLivingNews always have been and are Copyrighted, © 2017 by MHProNews.com a dba of LifeStyle Factory Homes, LLC – All Rights Reserved. No duplication is permitted without specific written permission. Headlines with link-backs are of course ok. A short-quoted clip, with proper attribution and link back to the specific article are also ok – but you must send a notice to iReportMHNewsTips@mhmsm.com of the exact page you’ve placed/posted such a use, once posted.)

Industry Lender Announces Name Change

February 13th, 2017 Comments off
IndustryLenderAnnouncesNameChangecreditCreditUnions-postedtothedailybusinessnewsmhpronewsmhlivingnews

Credit: Credit Unions.

In a story that we first covered last week, San Antonio Federal Credit Union (SACU)/CU Factory Built Lending (CUFBL)/Mountainside Financial tells MHProNews that they have changed their name to Credit Human Federal Credit Union.

The change of name better reflects the credit union’s commitment to improving the lives of those they serve, regardless of location.

 

We are not merging, being acquired, changing our membership guidelines or management. Our products and services will remain the same,” the credit union told MHProNews.

The people you’ve known and worked with will continue to be there whenever they are needed. We are simply deepening our fundamental focus as an organization that positively affects the financial health of our members and the communities in which they live.

While the legal name change has already taken place, the full transition to the new Credit Human Federal Credit Union branding will be gradual, and is scheduled to take place over several months. Until that is complete, the credit union will continue to do business as SACU/CUFBL/Mountainside Financial using those brands and logos.

As Daily Business News readers are aware, the newly named Credit Human Federal Credit Union provides financing options for credit union members choosing manufactured housing as an alternative to traditional site-built homes. ##

The official announcement is linked here.

Question and answer information is linked here.

The official email sent to partners 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.

COAP teams up with SmartMH KY Initiative

September 15th, 2016 Comments off
smartmh-betterloansbetterhomes-coapbarrynoffsingercufblstaceyeppersonposteddailybusinessnews-mhpronews

Barry Noffsinger, CU Factory Built Lending (SACU), and Stacey Epperson, NextStepUS. COAP logo and SmartMH™; all logos and images are the properties of their respective organizations, and are used here under Fair Use guidelines.

COAP, Inc. recently joined the SmartMH KY™ program, a strategic alliance of the manufactured housing industry producers, lenders, retailers, utilities, non-profits and stakeholders who’ve made it their mission to make ENERGY STAR™ homes more accessible via better loans throughout Kentucky, the Harlan Daily Enterprise reports.

COAP’s mission, per their website, is “To provide sustainable, affordable, safe, energy efficient, and dry housing with moderate, low, and very low income Harlan, Bell, and Leslie Counties of Kentucky families and individuals.”

COAP was conceived in 1977 as a grass roots inter-denominational relief effort in response to a devastating flood, which caused great destruction of homes in Harlan County,” says their website.

By March of 1983, COAP was formed as an independent non-profit corporation, which later replaced the work of Christian Family Housing Services in January of 1984.

Now that COAP and SmartMH KY™ have teamed up, COAP has become part of an initiative that seeks to reenergize the housing marketplace for energy-efficient homes by providing flexible financial plans in an effort to lessen homeowners’ financial burden.

The partnership will also push the impact of a new ENERGY STAR™ upgrade program to the forefront. This program, administered by the Systems Building Research Alliances, is buoyed by support incentives from a number of outlets, including the Kentucky Housing Corporation, participating utilities and participating factories. These support systems will make the ENERGY STAR ™ upgrade available for a minimal cost, or in some cases, no extra cost for homebuyers in Kentucky.

clarencedavissmartmh-ky-posteddailybusinessnews-mhpronews

Home owners like Davis are the reason for the SMARTMH KY™ initiative. Image credit, SMARTMH™.

Manufactured homes are a key source of affordable housing for KY residents. 14% of Kentuckians own a manufactured home.  However, out of the roughly new 2,000 manufactured homes sold in Kentucky, less than 1% are certified as ENERGY STAR™.  The goal of the program is to give singles, couples and families the ability to save on the purchase of a new manufactured home as well as save longer term through a lower energy bill. ##

(Editor’s Note: this is a voluntary, incentive based program in which non-profits and for-profits are working together.  It stands in contrast to the proposed DOE energy mandates, to see the latest developments on that proposal, please click here.)

(Image credits are as shown.)

Joe_Dyton_DailyBusinessNews-MHProNews125x125-

Joe Dyton, for the Daily Business News, MHProNews.

Submitted by Joe Dyton, Daily Business News, MHProNews.

Will Matt Drudge, Fox or CNN Spotlight Unfair Challenges Harming Millions of Manufactured Home Owners?

May 20th, 2015 2 comments

 

Mike-Baker-SeattleTimes-Daniel-Wagner-CenterForPublicIntegrity-hr650-s682-preserving-access-manufactured-housing-act-corrected-mhpronews-com-

Correction on this photo, an earlier version did not have the proper image of Mike Baker, left.

The Seattle Times/Center for Public Integrity has allegedly targeted Clayton Homes and Berkshire-Hathaway affiliated finance companies in an attempt to derail much needed reforms to Dodd-Frank which harm millions of manufactured home (MH) owners and thousands of MH businesses.

Mike Baker and Daniel Wagner – writers of the Seattle Times articles, done in conjunction with the Center for Public Integrity – used shock tactics prior to the House of Representatives vote to attempt to derail the now-passed HR 650, which enjoyed bi-partisan support.

More recently, that writing duo turn on Warren Buffett’s firms again, in advance of a Thursday May 21st vote in the Senate Banking Committee that will include industry sought relief (S 682) from the Consumer Financial Protection Bureau regulations. Industry professionals say that The Preserving Access to Manufactured Housing Act, would mitigate the harm done to the value of millions of low-cost manufactured home owners by the unintended consequences of Dodd-Frank.

It might take a link by billion-plus monthly page views Drudge Report, or media mavens like Fox or CNN, to right the imbalanced coverage spawned by Baker’s and Wagner’s questionable journalism.

Writing in the Seattle Times, Baker says that the default rate on manufactured homes is higher than conventional housing, and uses pejorative terms about the loans such as “predatory” and “risky.” But should 97 home buyers be barred home ownership via financing others won’t offer, so that the 3 who fail in a year be spared their loss?

As a comparison, should millions be stopped from working because a small minority might quit or lose their jobs? Should subscribers to the Seattle Times digital or print publications be barred from buying their brand of news, because some every year will stop paying them? Should their publication be barred from selling ads because some advertisers will stop using them every year?

Yet that is kind of reasoning being used by Baker and Wagner. Their self-evident goal is an attempt to stir up enough shock value that blurs their use of faulty or circle reasoning, aimed at undermining support for much needed Dodd-Frank reforms.

Real Harm to Millions of Real Home Owners and Thousands of Businesses

The Seattle Times and the Center for Public Integrity (CPI) fail to balance their report by pointing out that the loss of lending that has taken place is harming the value of the lowest cost manufactured homes.

Some 20% of the homes that 20 million manufactured home owners live in would sell for under $20,000, the mark that 21st Mortgage Corporation set below which they could not safely make a loan and still hope to profit. With 8.8 million manufactured homes and pre-HUD Code mobile homes in the U.S., that 20% would represent about 1,760,000 manufactured/mobile homes (MH).

Since most MH owners live in their homes an average of about 10 years, millions may not yet realize they are harmed.

Comrades in Arms Against Reform?

Organizations like the Center for Enterprise Development (CFED) are ducking tough questions from MHProNews. Meanwhile, CFED’s Doug Ryan willingly comments to the Seattle Times or OZY Media, why? Are his comments made to other media a desperate effort to shock enough people with headlines and stories that don’t stand up well to close scrutiny? Aren’t CFED and Ishbel Dickens led National Manufactured Home Owners Association (NMHOA) harming the very home owners they claim to be advocating for? Is their ideological stance more important to them than the realities on the ground caused by the polices they advocate?

Dickens sent MHProNews an emailed reply, saying she was on vacation, and thus could not answer questions. Her “vacation” ends after the Senate vote. She can email that she is on vacation, but can’t email a simple reply on the impact of current CFPB regulations on the values of millions of manufactured homes? Or how publishers such as OZY Media are arguably harming the value of MH owners, by using improper and derogatory terminology?

CFPB Regulations harms all current Manufactured Home Lenders

By spotlighting Berkshire-Hathaway affiliated companies, Baker and Wagner are allegedly attempting to derail needed reforms of Dodd-Frank, that impact manufactured home owners and every lender in the manufactured housing space.

don_glisson_2Triad Financial Corporation is a competing company to 21st Mortgage. Triad’s President and CEO, Don Glisson Jr., has told MHProNews that his firm’s costs have skyrocketed since CFPB regulations have gone into effect.

Glisson said, “Triad has been the leading lender in the “A” credit market for over 50 years and I have personally been with the company for over 30 years. Regulations have always been a fact of life for us, but our compliance costs have quadrupled in the past 3 years alone.”

Another industry lender, formerly with US Bank, told MHProNews off-the-record that their bank’s manufactured housing loan program was profitable. But the high costs of regulatory compliance, coupled with low loan volume, caused U.S. Bank to end their manufactured housing lending program. That mirrors the official statement made by the bank when they pulled out of manufactured home lending in November, 2014.

A third manufactured home lender said off-the-record that they are glad 21st Mortgage and Vanderbilt Mortgage and Finance (VMF) make the loans they do. Why? Because in the wake of the 2008 financial collapse, loans on manufactured homes originated by 21st and VMF were crucial to the survival of thousands of MH Industry companies, which included hundreds of independent operations not owned by Berkshire-Hathaway.

Doesn’t the dismal failure to report in a balanced fashion – as Jan Hollingsworth did in writing on the impact of Dodd-Frank on manufactured home buyers and professionals – undermine the credibility of a journalist?

Senior management with every major industry lender MHProNews spoke in favor of reforms on Dodd-Frank, even if they don’t make the same kinds of loans 21st and VMF do.

Triad’s CEO elaborated on the challenges faced by their firm and other manufactured housing professionals. “Since we specialize in A credits, we have never had an issue with higher cost loans and the rules that surround higher priced loans have zero impact on us.”

However,” Glisson stated, “the rule that prohibits a manufactured home retailer from advising the customer on finance options is one that we would like to see changed. Currently a buyer of a site built home can receive advice from their realtor or builder on financing options, while manufactured home buyers have no similar ability to seek a seller’s help. This would be like going to a car dealer to buy a new SUV and when you ask for help securing a loan they hand you the phone book and say they can’t help you so just pick one out yourself.”

Glisson explained what impact this CFPB regulation has made on their operation. “This has doubled the amount of applications we are now processing to do the same amount of lending. In the past, before the CFPB regulations, a retailer could pre-qualify a buyer by accessing their credit reports and analyzing their income, just like every Realtor ® in America can do. With that information, they could at least determine what lender NOT to send the application to. We have had to add several full time equivalent team members to handle the crush of applications, as we are now bombarded with applicants who have no chance of qualifying with us.”

This is a pattern of “shot-gunning” applications by retailers to all MH lenders, to avoid the appearance of steering, that other lenders have confirmed for MHProNews.

Glisson went on to say that, “Beginning in 2014, when the rules went into effect, our origination cost per loan has skyrocketed. Pre-2014 we would approve about 50% of the applications we received as they were pre-screened. Currently we approve about 30% of the applications we receive, so our efficiency went down the tubes and we are working harder and spending more to make the same amount of loans.”

These are the kinds of real world problems caused by federal regulations that cause a lender such as U.S. Bank to pull out.

inside_mh__am_landy

As Sam Landy, President and CEO of UMH Properties pointed out in a video interview linked here, it has caused them and others in the community business to stop lending to potential manufactured home owners. They now rent homes to those who before would be qualified by their finance arm to make renters into home owners. How does that regulatory caused impact help those thousands seeking ownership and equity instead of rent receipts to advance in life?

Doing the Math

Finance experts tell us that a community operator like UMH, using a related or ‘captive finance’ company, can afford to make loans at a lower interest rate than a traditional lender because they are only loaning on manufactured homes in their community. In the event of a default, their costs and thus their loses are lower. Additionally, a manufactured home community operator can benefit even if their loan program is only marginally profitable, because they are getting additional revenue from a sold home and filled homesite.

There is no similar benefit to the third party loans made by 21st, VMF, Triad Financial, CU Factory Built Lending or Mountainside Financial. The same holds true for regional or local lenders who must profit on the loan itself, or they won’t make the loan in the first place.

Does Buffett win more than Millions of home owners would from the proposed reforms to Dodd-Frank?

While the Seattle Times’ Baker and his tag team writer Wagner make it sound that Warren Buffett and Berkshire-Hathaway related companies are the big winner from financial reform, they clearly overlook the real world impact on an estimated 20% of those home owners who live in a home that is worth under $20,000.

If those homes averaged $15,000 each, 1.76 million MHs represent an aggregated value of $26,400,000,000. That sum dwarfs the benefits to Berkshire-Hathaway, or indeed, to the entire manufactured housing industry.

Since financing is the key to most big ticket sales, a loss of financing causes the same drop in value that was seen in conventional housing in the wake of the 2008 mortgage collapse.  Just as conventional housing lost value absent lending, the same holds true for manufactured homes.

As the now-retired president of the Manufactured Housing Association for Regulatory Reform (MHARR), Danny Ghorbani, has said, the factory built home industry was not the cause of the 2008 housing/mortgage bubble. So why were manufactured home owners, housing businesses and professionals penalized? Why is manufactured housing owners and buisnesses taking such a direct hit from the impact of CFPB regulations?

eric_powell_and_family

 As Eric Powell told Jan Hollingsworth about the impact of Dodd-Frank and the CFPB regulations on their manufactured home purchase, What were they thinking when they did that?”  Or as Sam Landy told MHLivingNews, the consequences to millions of manufactured home owners and thousands of business may well have been untended, but someone has got to fix this. ##

(Image credits 3 and 4, MHLivingNews; Don Glisson Jr photo and composite photo and graphic of Baker and Wagner made by MHProNews).

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