Posts Tagged ‘duty to serve’

Freddie Mac’s Manufactured Housing, Myths vs Facts – Your Professional Thoughts?

August 10th, 2018 No comments


We’ll weigh in on this Freddie Mac handout promoting manufactured housing another time, but would value that of the readers of Daily Business News on MHProNews.


Here it is, below. We just have this suggestion, as you look at this handout from Freddie Mac, meant to promote manufactured housing.  Please consider it from all angles.

  • What do you like?
  • What do you think could have been different?

Download the full size document, at this link here.

  • What might have made this handout intended for home-shopping consumers better?

Your Comments, Feedback, or Tips email at this link. Or Connect via LinkedIn and comment.

Please feel free to send email us your comments, at the link above.  Your thoughts can be on or off the record, just be clear which it is.  Thank you. “We Provide, You Decide.” © ## (News, analysis and commentary.)

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Fannie Mae Touts MH Advantage Program, But Manufactured Housing Association Slams Plan as “Illegitimate,” “Bait and Switch”

June 5th, 2018 Comments off


In a letter to the Manufactured Housing Institute (MHI) and Manufactured Housing Association for Regulatory Reform presidents, Jonathan Lawless, Vice President of Fannie Mae advised the two national trade associations of their news “MH Advantage” program for manufactured homes.


The opening from the letter from Lawless to the two national trade association CEOs opens as is shown below.


Click here or below for the entire Fannie Mae letter to MHI and MHARR.

Rephrasing, manufactured homes that don’t fit the program won’t get financing.

The entire letter from Lawless, which was obtained by the Daily Business News, is linked above as a download.

Fannie Mae, as attentive MHProNews readers may recall, has drawn fire for being a member of MHI.

The GSEs have also been called out by House Financial Services Committee Chairman Jeb Hensarling for lobbying, a charge the federally regulated home finance giant denies.

Update on Fannie Mae Lobbying, and Manufactured Housing Controversy

A letter published by MHARR leaned into Lawless and Fannie Mae, saying the plan is not acceptable.

MarkWeissJDPresidentCEOManufacturedHousingAssocRegulatoryReformDailyBusinessNewsMHProNews“…the MH Advantage Initiative, both in its underlying concept and premise, is in fundamental conflict with the DTS mandate – and suffers from other fatal defects – which render it wholly unacceptable to MHARR.”

MHARR’s president – an attorney and multi-decade industry veteran – began to carve up the Lawless letter as follows.

In relevant part, your June 4, 2018 letter states: “MH Advantage homes [will] have design features – developed after consultation with a range of manufacturers – more often associated with site-built homes.” (Emphasis added). The purpose of DTS, however, is not to change the fundamental character of HUD-regulated manufactured housing to be more like site-built homes, or to funnel DTS-based financing to higher-cost homes that are not in the mainstream of affordable HUD Code manufactured housing production,” wrote Weiss.

The DTS mandate, rather, as MHARR has noted on multiple occasions, was enacted by Congress as:

(1)  a congressional finding that Fannie Mae (and Freddie Mac) have not — and still do not — properly serve the manufactured housing market and manufactured housing consumers, despite existing Charter obligations to support homeownership opportunities for very low, low and moderate-income Americans, as well as  

      (2) a remedy for that specific failure.”

Weiss said that the failure of the predecessor to this program, MH Select, completely missed the mark, saying: “As the abject failure of the earlier Fannie Mae “MH Select” program,” saying that no loans had been made under the prior program.  Weiss said, MH Select, “…resulting, according to available information, in exactly zero loans…”

Indeed, the fact that it has taken ten years to get even this far, after decades of failing to serve the manufactured housing market (as determined by Congress), shows that Fannie Mae has no real intent to comply with DTS as established and designed by Congress.”  HERA 2008 is the legislation that established the Duty to Serve (DTS) manufactured housing, and after a 10 years, and it is only now that a chattel lending program is being rolled out.

Instead, prejudice, discrimination and outright bias against those prospective homebuyers – who the GSEs were formed to serve and DTS was specifically enacted to serve and benefit – has been the hallmark of Fannie Mae (and Freddie Mac) policy for decades, leading to the DTS mandate in the first place,” said Weiss.

“…As such, this program does not constitute a legitimate implementation of DTS as much as a diversion, “bait and switch,” and illegitimate end-run around the consumers and policies that DTS was enacted in order to advance,” the Washington, D.C. based MHARR president said.

This circumvention of the purposes and objectives of DTS, moreover, does not even begin to address other significant competition-based concerns regarding the specifics of the MH Advantage Initiative, including compliance criteria that were developed behind closed doors, in closed proceedings accessible only to select participants (as determined by Fannie Mae); and — according to information available to MHARR, onerous energy requirements that have been advanced by the largest industry manufacturers from both a marketing and regulatory perspective, and specifically favor those manufacturers,” Weiss stated, adding, “Nor does any of this even begin to address the possible intersection between the MH Advantage Initiative and a secretive “new class” of manufactured homes being advanced by the same large manufacturers – and their trade organization, the Manufactured Housing Institute (MHI) – which supposedly was “well received by Fannie Mae and Freddie Mac.”

Perhaps to Weiss point, the Fannie Mae website features two photos with their public announcement of the program, both from the company that MHI’s chairman represents.

The “MH Advantage” Initiative, therefore, is less about implementing DTS for its intended beneficiaries than avoiding the type of market-significant securitization and secondary market support for mainstream, affordable manufactured housing that DTS was designed and intended to produce.  As such, it violates DTS and is wholly unacceptable to MHARR.”


The View of the Finance Fray from MHProNews…

The Daily Business News warned the industry months ago that the so-called “new class of homes” being promoted by MHI was potentially the latest “trojan horse” from MHI. The articles linked below can be read later, and are provided as a reference and for more details.  But


Manufactured Housing’s “Trojan Horse”


The Fannie Mae letter should heighten that concern, as those retailers, communities, and producers that don’t participate in a plan tailored to the “big boys” at MHI.


Secretive “NEW” Class of Manufactured Housing Raises Serious Concerns


As MHProNews has warned, there are potentially monopolistic implications from these actions.


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

Several pending reports related to this topic are on the horizon.  But the bottom line for now is that this move by Fannie Mae may signal yet another attempted end-around by larger MHI member companies aimed at smaller independent ones — and it may be happening with one or both GSEs assistance.

MHProNews has reached out to Fannie and MHI for comment. While there are many possibilities, based upon years of prior disappointments on DTS, this does not look promising. Time will tell, more to come. “We Provide, You Decide.” © ## (News, analysis, and commentary.)

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Related Reports:

Smoking Gun 3 – Warren Buffett, Kevin Clayton, Clayton Homes, 21st Mortgage Corp Tim Williams – Manufactured Home Lending, Sales Grab?

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

Manufactured Housing – Regulatory, Other Roadblocks and Potential Solutions, Up for Growth Research, plus Urban Institute Report Revisited

President Trump Spotlights Factory Home Builder in Speech, Proven Promotion, Support of Industry Advancement



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CEOs Debate Over Affordable Housing, One Touts Manufactured Housing Concerns

May 1st, 2018 Comments off


In spite of a strong market, American families are facing unaffordable housing, said Fannie Mae CEO Timothy Mayopoulos on FOX Business Tuesday.

The greatest challenge in housing now is not home price appreciation but really affordability for families,” Mayopoulos in his Mornings with Maria interview.

The government-sponsored enterprise, which is one of the primary providers housing finance for homebuyers, cites lack of wage growth as the culprit.

Rents and home prices are increasing at a faster rate than wages are,” he added.

What manufactured home industry professionals will note is this. Despite Fannie Mae’s bold promises made at this or that event or press release to support manufactured housing, Fannie’s CEO didn’t mention manufactured homes in this mix of needs for affordable housing at all.

In comments reacting to this video interview, The solution to housing affordability has been in front of Fannie Mae’s figurative nose for years, in the form of federally regulated manufactured homes. But both GSEs have resisted providing manufactured housing with any [meaningful] type of support. Congress got so fed up that it passed a law imposing a “duty to serve” manufactured housing on both GSEs. Ten years later, though, Fannie and Freddie have done virtually nothing, and are doing their best to keep it that way,” MHARR president and CEO, Mark Weiss, JD, told MHProNews. 

MHI provided no comments on this topic. ## (News, analysis, and commentary.)

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Related Reports:



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MHI Lender Shakes Up DTS and MLO Rule Discussions

March 23rd, 2018 Comments off


A veteran Manufactured Housing Institute (MHI) lender’s controversial comments to the Daily Business News are bound to shake up discussions about two hot button industry topics.


Those two subjects are:

  • the Duty to Serve (DTS) Manufactured Housing, mandated by Congress a decade ago, and
  • the Mortgage Loan Originator (MLO) Rule, established by the Consumer Financial Protection Bureau (CFPB) during the Obama Administration, and run under Richard Cordray’s leadership for several years.

A senior lender in manufactured housing, whose company is an MHI member, said that Triad Financial Services turned over their data to the GSEs “about 5 or 6 months ago.

The same informed source said that Credit Human, formerly known as CU Factory Built Lending, committed to turning over their data to the GSEs as well. That hand-off was reportedly more recent.

Therefore, the two Berkshire Hathaway owned lenders – 21st Mortgage Corp and Vanderbilt Mortgage and Finance (VMF) – were the 2 major holdouts.

The industry’s larger chattel lenders split along ‘party lines,’ with Berkshire Hathaway not providing data to the GSEs, and non-BH lenders providing data to Fannie Mae or Freddie Mac.

That loan performance data, said the GSEs, was needed to responsibly implement home-only “chattel” loans.

Despite assurance from MHI to members that they were doing ‘all that can be done’ to promote the Duty to Serve, the revelation that the Berkshire Hathaway owned lenders gave no data to the GSEs undermines that contention. MHI and the Berkshire Hathaway companies have previously been invited to clarify or confirm these concerns. Doesn’t their silence speaks volumes?

The comments confirmed once more the public statement in Tunica that Fannie Mae’s Paul Barretto made earlier this week, that Berkshire Hathaway failed to provide them with any relevant data.

According to Barretto, that meant that the bulk of the data they had was from the Conseco loan pool, which dated back to the late 1990s and early 2000, and were widely known for problematic origination and thus poor loan performance.

The combination of comments by the MHI lender and Fannie Mae’s Barretto underscored key revelations that help explain a decade of delays in implementation of the Congressionally mandated Duty to Serve Manufactured Housing.

That lack of data claim was in turn was used by the GSEs to do only a relatively modest pilot program by Fannie and Freddie. Those pilot projects are to be rolled out over 3 years, in support of the most affordable permanent housing in America.


Preserving Access…err…S. 2155

Once more, the potential for the Manufactured Housing Institute (MHI) to make a deal on the Mortgage Loan Originator (MLO) Rule – which some in media are mischaracterizing as “steering” – directly with the non-profit consumer groups was asserted by an MHI member lender.

Why does it matter?

First, because while the odds of passage on S 2155 are up, it is no guarantee that the manufactured housing amendment to the bill will survive a House/Senate conference committee.


As or more important, the recent reveal by the lender and Barretto both belie MHI’s official claim that they’ve been doing everything possible to advance the cause of more lending in manufactured housing.

If Barretto’s public comment in front of dozens of industry pros, plus the MHI lender and other sources are to be believed, then what MHI claims “just ain’t so.”

As MHProNews exclusively reported, the lender noted above confirmed what other sources have already said, which is that the non-profit “consumer groups” were ready to deal on the MLO rule, so long as the points and fees that mostly Berkshire Hathaway lenders wanted would be dropped from Preserving Access.


Dickens and others reportedly offered a compromise, which MHI declined. Consumers and independent industry professionals alike have suffered as a result.


As the MHI member lender told MHProNews, the art of compromise is the essence of political advancement.

Yet, “MHI’s leadership” was unwilling to compromise at all.

To rephrase, and emphasize – per our sources — MHI allegedly misled their own members and the industry at large


The likely answer has been supplied by the Manufactured Housing Association for Regulatory Reform (MHARR), which tacitly supported Preserving Access, but felt that bill had no chance for passage.

MHARR President and CEO, Mark Weiss, JD, said that every day that DTS isn’t fully and robustly implanted is “a gift” to the Berkshire Hathaway owned lenders.


MHARR tacitly supported Preserving Access, but also privately felt the bill had no chance. Years later, they’ve been proven correct.

The same logic can be applied to S 2155.  By creating a burden for competitors, the larger Berkshire Hathaway companies could endure the discomfort, knowing it would cause their industry competitors even more pain.

MHARR has called for a congressional investigation of the DTS matter, and has hinted at other possible steps that they may take.  MHI’s failures – whatever the cause or motivation – to get meaningful relief, has resulted in hundreds of once independent retailers and several HUD Code home producers vanishing in a few short years.  That fact is demonstrated by MHI’s own data.


State Association Voices Largely Silenced 

Even more state association executives have privately confirmed for the Daily Business News what then MHI Chairman, Tim Williams, said after he took over a conference call.  Williams reportedly threatened and pushed reluctant state executives to promote the Preserving Access to Manufactured Housing Act with their state members (see Gold Rules report, linked below along with other resources for more details).

Yet, former MHI Vice President Jason Boehlert said in a formal statement that Preserving Access was unlikely to pass while then President Barack Obama was in the Oval Office. And it was Warren Buffett who supported then POTUS Obama’s reelection effort.


Those numerous and clear disconnects between what MHI claimed, and what Warren Buffett did are so blinding, some fail to see it.

But a growing number are grasping the apparent sham of MHI saying one thing, while Buffett was personally working for the opposite.

The only logical implication is that MHI’s elected and staff leadership were driving the MH Industry at large into years of wasted and costly efforts.


Publisher L. A. ‘Tony’ Kovach has observed what other voices inside or outside of MHI have said. Berkshire Hathaway owned companies benefit if the Preserving Access bill passes, or not.

Furthermore, the longer more new HUD Code home shipments are diminished, the more retailers and communities sell out for less than their value, or are forced out of business.

That in turn would lead to more closures of the independent HUD Code producers, who once supplied the failed or consolidated independents retailers and communities.


If MHProNews were the only source with these concerns, then one might be more inclined to dismiss it. But several sources inside and outside the industry raise the same or similar concerns. Where there is smoke, there is fire, right?

So while the affordable housing crisis rages, manufactured housing had the brakes put on it.  Frank Rolfe, an MHI member, said last year that the industry is its own worst enemy.

It’s a process the fits perfectly with Warren Buffett’s “the Moat” principle, which the two posted videos below confirm.  But for someone to really understand the issues Kevin Clayton and Buffett himself raise, they must do what Buffett does.  Invest the time to research and read.

What Buffett says in brief about “the Moat” – increasingly seen as a monopolistic plan – Kevin Clayton confirms in detail.

This is parallel to the reasons why the Nation recently named Buffett as a monopolistic player in industries, including manufactured housing.

The Nation specifically pointed a finger at Clayton Homes, and their Berkshire Hathaway sister companies.


They Win, While a Growing Number of Independent Businesses Lose…

 …or is There Another Option?

MHProNews has received multiple contacts from veteran attorneys who believe that an antitrust case could be made, by federal authorities, but also by independent businesses suing under civil antitrust laws that carry triple damages.

Among those attorneys are those who would do the case on contingency.

Meaning, the law firm collects only if they win the case or come to an agreed upon settlement. With many contingency cases, the attorney doesn’t require the normal hourly fee.  The reason an attorney does a case on contingency is because they believe they can get more by taking a percentage of a case, then the hourly fee would be. That reduces the risk for the plaintiff, while increasing the drive by the suing law firm.

As the nation is caught in an economic vice that the affordable housing crisis has fueled, manufactured housing is – as MHLivingNews touted years ago – the solution that’s hiding in plain sight.

MHI’s shadow boxing on regulatory issues has stymied and delayed the industry’s recovery. The very professionals who are paid to promote the industry, in this view, have been rewarded for failure to achieve any meaningful regulatory relief.

Given several on-the-record statements by

  • Clayton Homes CEO, Kevin Clayton,
  • Tim Williams of 21st Mortgage,
  • Warren Buffett’s well publicized principles,
  • and documents obtained by MHProNews on 21st letterhead,

there is mounting evidence which seems to support the allegations that the thousands of industry retailers – and numerous producers – failed or sold out cheap, all while MHI postured ‘advocacy’ on their behalf.

Some believe that the push for S. 2155 compromise now, is precisely because of the ‘heat’ that MHI has been getting from MHProNews coverage of their problematic handling of Preserving Access.

As was reported yesterday, a growing number of the industry’s professionals have taken these MHProNews reports seriously.

While some continue to believe MHI et al, others were in Tunica this week taking practical steps to distance themselves from options linked to Berkshire Hathaway owned brands.


The Return of Common Sense?

Common sense says you don’t feed a dog that’s proven to bite your or others’ hands,” says Tony Kovach.


L. A. “Tony” Kovach, photo by Mark Simon, shows Kovach engaging with SAAs in NY. Kovach is the publisher of the industry’s two largest and most popular trade media, and

The pattern seems to be this.  MHI takes the wrong position on an issue, and only after extended pressure, do they finally relent and pivot to the more logical stance for industry independents.  So there is no glory for them in finally taking a correct step, after months or years of allegedly bad ones.

Meanwhile, the majority of the industry’s independent members have suffered. Some have sold out for less than the true value of their business, or lost their once successful businesses altogether. No wonder law firms are interested in working a legal action against this sort of behavior on contingency.” Tony Kovach said.

While MHProNews naturally values on-the-record comments, such off the record insights from the lender noted above can be invaluable for the industry’s independents.

The concept can be digested in minutes.

But to fully digest the nuances of what is taking place, one must do as Warren Buffett himself does: it may take a few hours of reading for all of the facts to be fully understood.

Buffett sees the value of studying the issues, but how many independent professionals do? Will more dig deeper in the days ahead? “We Provide, You Decide.” © ## (News, analysis, and commentary.)

Related Reports:

Progressive “Nation” Reports on Monopolies Cites Buffett, Clayton, Others – MH Industry Impact?

Busted! “Failure Bonus” Paid-Richard “Dick” Jennison, CEO Manufactured Housing Institute-per MHI Document$

Warren Buffett, “the Moat,” Manufactured Housing, Berkshire Hathaway, Clayton Homes, 21st Mortgage, Vanderbilt, Wells Fargo, NAI…

“Follow the Money” – Controversial Urban Institute Report on Manufactured Housing

Killing Off 100s of Independent Manufactured Home Retailers, Production Companies – Tim Williams/21st Mortgage “Smoking Gun” Document 2

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

Inside Scoop Mulvaney-CFPB and MHI, Berkshire Hathaway Company Meeting Detail$

State Associations, Companies Quit Membership in Manufactured Housing Institute, (MHI), One Explains in Writing, ‘Why?’

Lawsuits for Triple Damages – Anti-Trust, Anti-Monopoly Law, Manufactured Housing, and You

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

Study Recommending New Manufactured Housing Association for Independent Retailers, Communities, Lenders, Others Released

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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

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.)


‘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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Two Great Laws Already on the Books NOW,  Can Unlock Billion$ Annually for Manufactured Housing Industry Businesse$, Investor$

January 26th, 2018 Comments off


Stating the Obvious for Clarity. Manufactured housing professionals are busy doing what they do, day-by-day.

People go to work, invest in, or own a business in order to earn a good living.


With the affordable housing crisis, the manufactured home (MH) industry ought to be doing far better than it is. Almost everyone in the industry agrees on that point.  The housing crisis is a fact that Skyline-Champion – or others in the industry – point to in their investor presentations.

Skyline Corp, Champion Homebuilders Conference Call Presentation Facts, Figures, Forward-Looking Statements, Planned Merger Detail$

There are two great laws – not fair, or decent, but great laws – that are already on the books that properly used and implemented could propel manufactured housing to the top of the nation’s choices for affordable housing.

Fully implementing those two federal laws would be good for:

  • Federal, state, and local governments that are spending tens of billions annually on affordable housing measures that are unable to keep pace with the growing needs in the U.S.
  • Good for investors, and current manufactured housing business owners, who could profit far more than they currently do, by providing the needed housing in the markets that they serve.
  • Good for realtors, developers, and could prove useful for many small builders.
  • Most of the risk would be born by investors, because once understood, they will grasp the ‘no brainer’ nature of the opportunity.
  • To rephrase, the private sector could profitably solve the housing crisis, so long as the public sector – notably, the federal government – implements these two laws.

Those Two Laws Are?

The Manufactured Housing Improvement Act of 2000 (MHIA 2000) and the Duty to Serve (DTS) Manufactured Housing mandated by the Housing and Economic Recovery Act of 2008 (HERA).

What is keeping these laws from being properly understood and widely implemented?

Simply put, forces inside and outside of manufactured housing.


The external issues are exacerbated by the fact that the industry’s post-production sector lacks a national association that is actively working for the interests of independent producers, retailers, and communities.

Appealing Manufactured Housing Institute (MHI) Marketing, Finance Booklet Reviewed

The national ‘umbrella’ association – which is the de facto post-production association, is the Manufactured Housing Institute (MHI).

Facts Matter – Mr. Obama’s “Alternative Universe,” Trump Admin, Investors & Politicized Manufactured Housing Data

A recent and detailed example of how they are failing the industry at large – be that failure by accident, arrogance, or design – is linked above.

There are a few things that the HUD could be doing to promote the solution they are legally charged with regulating. They have failed to do so under the now terminated leadership of Pam Danner, J.D., who was the HUD’s manufactured housing program office administrator.

    • The true nature of how manufactured homes evolved from trailers houses in the 1930s to 1950s, to mobile homes in the 1950s to the early 1970s, to modern manufactured housing starting on June 15, 1976 is widely misunderstood within the federal government, as well as by state and local governments.
    • The MHIA 2000 features the so-called “enhanced preemption” which has never been properly implemented. If that one law was being enforced by HUD, it could be a revolution for cities and towns across the country. While the video that follows focuses on ‘upper end’ manufactured homes, the principle – and law – applies to entry level manufactured housing too.
    • The Duty To Serve (DTS) has been throttled by industry politics. See the Tim Williams/21st report linked, further below.

  • In additional to those two laws, FHA lending – part of HUD’s jurisdiction – is not being fully used. As reported last year, there are only two lenders under FHA’s current “10/10” rule that could be making home only (chattel) manufactured home loans.  Those two lenders are both owned by Berkshire Hathaway, Vanderbilt Mortgage and 21st Sources within 21st told MHProNews last year they suspended offering Title 1 loans. FHA needs to revisit that rule, and make Title 1 lending more broadly available to others who will put that law to work for consumers.
  • Finally, other kinds of lending that now exist are not properly understood. The GAO report, linked above, demonstrates that even with higher interest rate chattel loans, manufactured homes are still far more affordable than conventional housing or rentals.



The Trump Administration has said that it will be in the business of keeping promises and enforcing the law. They’ve demonstrated a consistent trend of attempting to do exactly that in their first year in office.

With the just announced top-to-bottom review of HUD’s manufactured housing program, the timing is perfect for the industry to spotlight how the Berkshire Hathaway dominated Manufactured Housing Institute (MHI) has routinely failed the industry.  The timing is perfect to underscore how MHI’s failures to properly engage explains in part how the HUD Code manufactured housing program is disappointing in its mission under the MHIA 2000.

The reports linked from this Daily Business News post will outline how those failures have occurred.

A little math explains precisely why manufactured housing has been allowed to flounder.

In a trillion-dollar a year housing industry, Harvard University’s Eric Belksy and others noted some years ago that manufactured housing was poised to surge to the fore-front of housing. When Belsky wrote those words, he knew about the lending problems that already existed at that time.

Simply put, by throttling lending and allowing heavy regulatory burdens to remain in place, Warren Buffett’s Berkshire Hathaway owned companies quickly became the number one producers and retailers of manufactured housing.

Kevin Clayton in the video interview shown explains in his own words how Buffett hated both foreign and domestic competition.  He repeatedly references “the Moat,” and Clayton candidly says that Buffett preaches “the Moat” to his company CEOs.

Kevin Clayton Interview-Warren Buffett’s Berkshire Hathaway, Clayton Homes CEO

It’s the truth hiding in plain sight.

Buffett supported big government candidates, such as Barack Obama and Hillary Clinton, who in turn supported regulations that – combined with his own choking off of lending to third parties – killed off over time, or forced to sell out for less – thousands of independent communities, retailers and independent home producers.

HUD’s new leadership must be made aware of this pattern.

While this may appear to be political, it is rather a question of crony capitalism at the highest levels.

It is worthy of congressional oversight, which some Democrats have called for too.

Maxine Waters Statement, Preserving Access Manufactured Housing Act 2017, Warren Buffett, Clayton Homes

President Trump has personally signaled in broad terms his willingness to use anti-trust (anti-monopoly laws). This is a bi-partisan issue.

President Raises the M-Word, “Monopoly,” Plus Manufactured Housing Industry Market Update$

The time to free manufactured housing to fully and properly use those two good laws, and implement others on the books such as FHA, could be a new economic boom for millions of Americans.

Implementing those 2 good laws can save taxpayers billions, while earning private enterprise billions.

MHProNews estimates that at current HUD Code manufactured home prices, building the 8 million needed affordable housing units is worth about $500 billion dollars at retail. After taxes and expenses, that’s billions of dollars to the bottom lines of business owners and investors.

That’s why award-winning Alan Amy said the industry’s billionaires are gobbling up manufactured housing.

It’s the truth hiding in plain sight.

By shadow boxing appearing to advocate, when they are in fact failing to be effective for any but a few big players – the Manufactured Housing Institute (MHI) is apparently guilty of being a tool of Berkshire Hathaway and what Maxine Waters and others have called their “near monopoly.”

GSE’s Duty to Serve MH Rigged, Benefits 21st, VMF, Clayton, Buffett’s Berkshire, Harming Consumers & Independents, per MH CEO, Calls for Congressional Investigation

Many believe there is nothing ‘near’ about the monopolistic power of Berkshire Hathaway.

It exists. That’s not a slam on the thousands of good people working for those companies. Many of those Clayton, 21st Vanderbilt staffers are among our thousands of readers.

But the monopolistic pattern ought to be a potential indictment on those who’ve misused their influence and power to the harm of thousands of businesses, millions of consumers, and taxpayers.

The time is now to act to enforce those two good laws.

The time has come clean up the mess that crony capitalism working with MHI and the heavy hand of government has produced.

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We agree with Warren Buffett on the value of the lessons of history, reading and research. Without those deep insights, the wool can be pulled over other people’s eyes. We respectfully disagree with Mr. Buffett’s politics.

By L. A. “Tony” Kovach.

Kovach is the award-winning managing-member of LifeStyle Factory Homes, LLC,
parent to MHProNews, and
Both are #1 in their categories.

Kovach is one of the most endorsed and recommended MH industry professionals in all of manufactured housing.



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

December 19th, 2017 Comments off

TimWilliams21stMortgageBerkshireHathawayClaytonHomesManufacturedHousingInstituteMHIDutyToServeFannieMaeFreddieMacLogosThe 45th President of the United States (POTUS), Donald J. Trump, and Berkshire Hathaway Chairman Warren Buffett have very differing political views. But there is an area of agreement that yields a valuable takeaway for any manufactured home professional to grasp, and adopt.

Warren Buffett invests the time, and learns what to do – and avoid – by reading.

That investment by Buffett in the time to study, and then makes informed decisions, are one of his ‘secrets’ of success.

That studious reflection, says Buffett, reduces his risks, and increases his odds of success.

Similarly, President Trump has said that it pays to know as much as you can about something that impacts you, your life, and profession.


Those bookend principles from POTUS Trump and Buffett were noted in the Daily Business News post, linked below.

Monday Morning Sales Meeting, What Warren Buffett & President Donald Trump Profitably Agree On

Buffett, who’s Berkshire Hathaway (BH) units include major players in manufactured housing, stresses the value of history too.

Historical knowledge and understanding, properly applied, are among the key elements – the fundamentals – which yesterday took the shares of Buffett-led BH to its record high of $300,000 each.

Buffett, Baseball, Berkshire 55 Years Ago Today, Plus MH Markets Update$

Trump & Buffett Principles Applied to Manufactured Housing News, Insight$

Those principles of reading, understanding, and then acting accordingly should be routinely applied to the words and deeds in the manufactured home (MH) industry.


That obviously includes the influential, and potent prior Manufactured Housing Institute (MHI) Chairman, Tim Williams.

Williams – as many industry professionals and investors know – is the president and CEO of 21st Mortgage Corp, a Berkshire Hathaway unit, and sister company to Clayton Homes, and Vanderbilt Mortgage.

In 2009, Berkshire Hathaway’s 21st Mortgage Corp President and CEO, Tim Williams urged the industry to contact their Congressional representatives to seek financing relief for manufactured housing.

So stated a document signed by Williams, that was obtained by MHProNews. That 21st document from Williams, provided to the Daily Business News as a tip from a reader, is found as part of a related report, linked from the graphic below.

In 2013, in an exclusive interview with MHProNews, Williams said that pursing the Duty to Serve was a “complete waste of time.”

TimWilliams21stMortgageCorpThenManufacturedHousingInstituteMHIChairmanMHProNewsWhat follows is the full text – and thus the context – for Williams’ reply on DTS, with the entire interview linked here.

I think it is a total waste of time to talk about DTS until Congress reaches a consensus on the GSEs. Will the GSEs exist as we know them? What will be their mission? I think it is a million to one shot that the FHFA and either of the GSEs agree to finance chattel manufactured homes while the larger issues remain unresolved,” Williams said.

Williams would especially be correct in his “a million to one shot” observation, if:

  • the Berkshire-Hathaway (BH) owned manufactured housing lending units fail to give the GSE’s the data that they said the Enterprises need,
  • in order to intelligently enter the MH personal property (chattel, home only) lending arena in a meaningful way.

In other words, if you stack the deck against the GSEs doing something substantive, the odds could indeed go to “a million to one,” observes our publisher.


Disconnects?  Contradictions?

In San Antonio, TX, in a 2017 meeting with a few dozen industry professionals that that are members of the Manufactured Housing Institute (MHI) in the room, Williams stated that 21st had not turned over data requested by the Government Sponsored Enterprises (GSEs).

So, while a few dozen industry professionals in that room may have heard that statement by Williams – who was then MHI’s chairman – there are thousands of MH professionals who were obviously not present.

Depending on how many read-and-trust only MHI messages – they might have a completely different impression than what Williams said in that meeting room.  After all, MHI claims via their messages, such as those attributed to Leslie Gooch, Ph.D.,  to be working to promote DTS.

The GSEs – or Enterprises – of Fannie Mae and Freddie Mac, citing a lack of data as a reason, is only lightly putting its toes into the MH industry’s chattel lending markets, as part of a plan published by the Federal Housing Finance Administration (FHFA), linked below.

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

Contradicting BH, MHI Claims?

On the one hand, there are apparently contradictory positions between actions, and statements made freely by Williams, and by the Berkshire Hathaway dominated Manufactured Housing Institute (MHI), as noted above.

There are also the previously quoted principles of BH Chairman, Warren Buffett.


To rephrase, Buffett – who is a long term player – has stated he believes most don’t pay attention to the lessons of history. The chains of habit (for others?!) are thus an opportunity for his business units, if – and only if – enough others fail to learn from history, and fail to break free of their chains of habit.

“Perverse”–Warren Buffett-Dodd-Frank, CFPB, Manufactured Housing, Loans, Independent Businesses Fact Check$

On the one hand, Mr. Buffett publicly supported Hillary Clinton, and Barack Obama before her.  Obama, Clinton, and Buffett all voiced support and/or acted in favor of Dodd-Frank.

So on the other hand, Williams and company at MHI have been pushing the Preserving Access to Manufactured Housingact, even though it seemingly put Williams at odds with Buffett on Dodd-Frank.

It also puts Richard “Dick” Jennison, Lesli Gooch (Ph.D.) at odds with the former MHI VP, who correctly predicted that with President Obama re-elected, it was unlikely that MHI could pass Preserving Access. 

Manufactured Housing Institute VP Revealed Important Truths on MHI’s Lobbying, Agenda

Any industry member, investor, or researcher who invests the time – which POTUS Trump, or Buffett’s advice would require – will discover so many disconnects between what is said by Berkshire Hathaway led MHI, and what look to be clear contradictions made by senior staff and/or their executive committee member(s).

No Wonder MHI Ducks Media…

No wonder MHI SVP Rick Robison, refused to take questions from MHProNews, in an verbal admission made in front of dozens of industry members.  How could he intelligently defend the national trade association, when there are so many obvious contradictions and inexplicable behaviors?

RickRobinsonManufacturedHousingInstituteMHIDailyBuisnessNewsMHProNewsBullet Points the Industry Must Consider

People often tend to give those that we know the benefit of the doubt, until proven otherwise,” said L. A. “Tony” Kovach, consultant and publisher of MHLivingNews and MHProNews.

Tim [Williams] is an intelligent, successful, driven professional. Jim Clayton sang Tim’s praises. Most would say, Tim’s a likeable gent. So, is it any wonder that it may be hard to imagine that Tim Williams – or Berkshire Hathaway’s Clayton Homes, Vanderbilt, or their affable billionaire, Warren Buffett – are all to various degrees initially trusted?” Kovach asked.


But there comes a time when one must look at the patterns of verbal claims, the actions that follow, and the outcomes, and then ask the deeper questions,” Kovach said, adding, “That’s where Marty Lavin’s rules must be applied.”


Lavin is an MHI award winner, and a success story in communities, retail and finance.


At the San Antonio MHI meeting, Dick Jennison and Lesli Gooch repeatedly made thinly veiled statements, aimed at MHProNews. But when these signs were first introduced, top MHI staff claimed it was aimed at ‘outside’ media, not ‘industry media.’ What caused this change toward a dues paying association member? What message does it send to others in their association? What message does it send to the industry at large? Is MHI trying to create a de facto industry trade media monopoly?

Let’s recap,” said Kovach, “with these bullets.  It could serve as an executive summary.

  • First, Williams says in 2009, ask your Congressmen to get the GSEs involved.
  • Later, Williams says in 2013, it’s a waste of time pursing chattel lending by the GSEs.
  • Then, when the pressure from MHARR and others – including MHI members – for getting the GSEs into the chattel lending space grows, MHI pivots and says it is promoting the Duty to Serve (DTS) by the Enterprises.
  • But how can MHI effectively promote the DTS if Williams and Vanderbilt won’t turn over the data that other manufactured home lenders freely provided?
  • The bottom line is akin to the old Zig Ziglar yarn about tell the fireplace to give you heat, and once it gives the heat, then you’ll give the fireplace wood.’ Williams, VMF, and Berkshire Hathaway surely all knew that not giving that [loan performance] data would slow down the DTS process with the GSEs. How could intelligent, analytical, independent-minded professional think differently?”


There comes a time when it is necessary to admit the obvious; that one has been misled, taken in, or whatever allegation and terminology one feels comfortable saying,” Kovach opined.

On issue after issue, MHI routinely follows the Berkshire Hathaway lead, as voices from inside and outside the industry have observed.

  • From weaponized news:

Weaponized, Faked News Harms Manufactured Housing Homeowners, Professionals

  • to years of wasted efforts on Preserving Access, when their own VP said that it wouldn’t likely fail to pass,

Manufactured Housing Institute VP Revealed Important Truths on MHI’s Lobbying, Agenda

  • to failure to engage the media properly, even though MHProNews provided a template that was praised by MHI’s education VP for laying out how that engagement can and should be done.


  • to the DOE Energy Rule

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

  • to the game-playing about the leadership at HUD’s manufactured housing program, the pivots and contradictory positions of the industry’s national association which is based in Arlington, VA are numerous.

Exclusive – HUD’s Manufactured Housing Program Administrator Pam Danner, Update

Andy Gallagher, “Ousting” Pam Danner, MHI, Clayton’s RVP, WVHI – “Transparency”


Frank Rolfe: Pressured into Silence? Manufactured Housing Industry, and Journalism

In addition to the concerns voiced from within the industry, are those that have come from outside of MH.

Maxine Waters Statement, Preserving Access Manufactured Housing Act 2017, Warren Buffett, Clayton Homes

Is it possible to have so many items that are arguably against the best interests of most of the industry? While at the same time, promoting efforts that benefit BH – directly or indirectly – often being paid for by small-to-mid size MHI members?  It’s so bold, that it is easy to understand why some struggle to accept the obvious.

“How to Find Affordable Home in Today’s Market,” Manufactured Housing Industry-Statepoint Media Fact-Check

POTUS Trump to MHProNews

In a release to Daily Business News today, the White House Press room touted the president’s “return to principled realism.”

Realism – believing in what is, rather than some wish, dream or fantasy that someone may want to believe – is how a person, business, industry, or a nation can advance.

Author Aldous Huxley said that those can learn who are open to learning.


There are only two kinds of experience, your own and someone else’s experience. The fastest way to grow is to rely on successful experiences from others, and leverage their knowledge applied to your location.

Prior “rough rider” and President Teddy Roosevelt is credited with making the following quip.


Only those willing to break with the chains of the past will be able to advance into the future of a brighter potential for their own operation’s potential within the manufactured housing industry.

No less than 4 different sites are currently promoting a new post-production association for manufactured housing.

Study Recommending New Manufactured Housing Association for Independent Retailers, Communities, Lenders, Others Released

Why?  Why yet another national trade organization for manufactured housing?

Isn’t the movement there because independents paying dues to MHI are arguably feeding the hand that bites them?

For those MHI members who are tired of years of unkept promises, and who have watched other companies get gobbled up by the industry’s giants, isn’t the time to stop whining and start acting, now?

ELS’ Sam Zell – Compliance Costs Destroys Smaller Businesses = Consolidation

It is instructive to note that MHARR – annually outspent perhaps by some 6 to 1 (+/-) – was able to stop MHI and DOE combined.  MHARR is proof that intelligent, educational efforts can defend, and advance, the industry’s interests.

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

What’s Coming, Another 21st Document

MHProNews plans to publish a second 21st document- also signed by Tim Williams/21st, like the one linked above – later this week. Stay tuned.

We Provide, You Decide.” © ## (News, analysis, commentary.)


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

If you have 21st Mortgage floorplan documents from circa 2008, 2009 to 2010, please consider sending those into MHProNews as a news tip for publication. Please white out your personal and company information, and thus your anonymity will thus be protected.

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Vanderbilt, 21st Mortgage, “Easy Manufactured Home Loans,” GSEs and Manufactured Home Industry Lending Updates

November 3rd, 2017 Comments off

VanderbiltMortgageFinance21stMortgageFinanceFannieMaeFreddieMacLogosManufacturedHousingNotMobileHomesLoansLendingDailyBusinessNewsMHProNewsAnother informed source with a Berkshire Hathaway unit confirmed to the Daily Business News that Vanderbilt Mortgage and Finance (VMF) does indeed offer a zero-down payment loan program.

That program is made exclusively for corporately owned Clayton Homes retailers, under their various retail outlet brands (Clayton, Oakwood, Freedom, etc.), per that source.

The program is not a ‘land in lieu’ of down payment program.  It is, per prior and recent reports, a true zero down chattel (home only) loan.

Of course the loan is for those who qualify, but per sources, it is a true zero down payment loan.  This most recent source told MHProNews that part of those qualifications are a 720 credit score or higher.  More on FICO score point, further below.

The issue is significant in a variety of ways, including the possible meaning for the;

  • Duty to Serve program – if the data were made available to the Government Sponsored Enterprises,
  • but also for reasons of competitive advantage in the marketplace.

Screen capture of graphic from a prior MHProNews report, to see the initial news story on this issue, click the graphic above.

“Unfair Competition…”…?


As the Dept. of Justice (DoJ) is reportedly considering an anti-trust action outside of the MH Industry, some observers are wondering what such a move might signal for the manufactured housing industry? The screen capture above is of a message to MHProNews from a retailer, expressing their view about the VMF Zero Down program.

The issue of the zero-down loans from Vanderbilt was first raised by another HUD Code manufactured home retail operation to the Daily Business News (see screen capture at left).

That source stated in a series of messages (only one shown at left) their belief that the VMF no down chattel loan program was an unfair competitive advantage for Berkshire Hathaway owned retailers.

Legal determinations are beyond the scope of trade publishing – they are matters for the legal system.

But the topics of lending, competition, and trade practices are of general interest to the industry; including but not limited to:

and other industry lenders,

among others.

Is A 720 Credit Score High?

While a 720-credit score may seem like a high bar to many retailers, in the world of conventional housing, its about the norm, per sources.


In fact, per the Truth About Mortgages, in September 2017, the average credit score for home buyers was now up to 745.  They cited Housing Credit Index (HCI) from CoreLogic, as the source for their data.

That raises the issue of the quality of credit scores that manufactured housing retailers and communities often, but not always, attracts.


Much of the industry is focused on getting low credit scores ‘bought,’ but the recently announced Triad/ECN deal reflects a different reality. People with good credit buy manufactured homes too. To learn more about the recent announcement, click the graphic above.

As professionals often stress, those with lower credit scores and lower incomes need an opportunity for home ownership too, and manufactured housing often serves as a pathway for that in the market.

However, when the manufactured home community or retail sides of the industry become too focused on those ‘entry level’ credit scores, that’s a turn-off to many lenders.  The reason low credit scores are shunned, is because they tend not to perform as well as higher ones – and lenders want loans that perform.

Representatives of the GSEs have said in public and private meetings that credit quality is a concern to them.  They might wince when they sit in a meeting room with community and retail sales people, and one of the first questions asked of a lender is how low of a credit score do you buy?”


The recent announcement of Triad Financial Services entering into an agreement to be acquired by Canadian ECN Capital ought to be a signal for more in the industry on several levels.

One of those takeaways is that Triad – which has historically focused on more qualified credit customers – does hundreds of millions of dollars a year in well qualified manufactured home lending.  Reports say that Triad’s preferred lending space are the so called “A & B” credit customers, not the “C & D” paper that are far more commonly found among the VMF and 21st loan portfolios.

As the video below and facts about industry lenders such as Triad and Credit Human reflect, the upside market potential for the industry is found primarily in the higher credit scores, and the more qualified buyers.

Attracting those qualified bill payers would also make it easier, per lending sources, for the Enterprises to take the dive, which might include some lower quality credit scores, so long as lower credits are the minority of the loans being made, and the overall portfolio performance is sound and sustainable.

That those good loans and buyers are out there by the millions is proven by the overall totals in the U.S. housing market (see graphic below).

Manufactured homes barely scratch the surface of the total count of existing homes sold per year, and hover around 9 to 10 percent of new single family housing starts.  Given the affordable housing crisis, the manufactured home industry’s potential is enormous.

Thus the statements by award winning retailer, Alan Amy, who stated on camera the intense interest of the billionaires and multi-billion dollar operations in manufactured housing.


21st Mortgage Competitor For Weaker Credit Scores…

In an upcoming report, MHProNews will spotlight a lender who is targeting lower credit scores.

Per our sources, they want to buy billions of dollars in paper total, much of it home only, chattel loans.

And they want to do so in just a few years, per our inside sources.

Will they be giving 21st Mortgage a run for their money?  Time will tell.

That report, and others are planned during November as part of our ongoing – and industry leading – track of finance related issues that impact the manufactured housing industry.  ## (News, context, analysis.)

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October 19th, 2017 Comments off

FHFAFederalHousingFinanceAgencyLogoBackdropDailyBusinessNewsMHProNewsA proposed Federal Housing Finance Agency (FHFA) “Draft Strategic Plan for Fiscal Years 2018-2022” barely mentions implementation of the “Duty to Serve Underserved Markets” (DTS) by the two Government Sponsored Enterprises (GSEs), even though, according to the implementation plans submitted by those organizations to FHFA earlier this year, key aspects of the GSEs’ implementation of DTS (as deficient as they are, as stressed by MHARR in its written comments on those plans) are slated to occur over that period.

So said Mark Weiss, President and CEO of the Manufactured Housing Association for Regulatory Reform (MHARR).

Weiss said in a release to MHProNews that, “In its only reference to DTS, the draft Strategic Plan, published by FHFA on September 27, 2017, states:

““FHFA will meet its statutory responsibilities to issue regulations as needed defining the regulated entities’ Housing Goals and Duty to Serve obligations for the Enterprises and FHFA will annually monitor the Enterprises, Housing Goals and Duty to Serve performance,”  quotes MHARR’s CEO.



Mark Weiss, President and CEO of the Manufactured Housing Association for Regulatory Reform (MHARR).

The FHFA’s “…bare-bones reference, however, provides no assurances or commitment whatsoever to ensuring that the GSEs will fully implement DTS – including market-significant securitization and secondary market support for the chattel loans that comprise the vast bulk of manufactured home consumer financing – during the time-frame of the draft Strategic Plan, which will conclude a full 14 years after Congress’ adoption of DTS as part of the Housing and Economic Recovery Act of 2008 (HERA),” said Weiss.

MHARR, accordingly, will submit comments to FHFA seeking a more specific commitment to the full and proper implementation of DTS with respect to manufactured housing and manufactured housing chattel loans in particular, as well as a detailed and updated time-line for that full and proper implementation to occur,” Weiss said.

MHARR said that comments on the FHFA draft 2018-2022 Strategic Plan must be submitted to the agency no later than October 27, 2017.

In a related story for an early roll out of a GSE plan in a community, click here. ## (News, analysis, commentary.)

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New Long-Term, Market Rate Loans in Manufactured Home Communities, Report, Reactions

October 18th, 2017 Comments off

NewHampshireROCUSAhomecommunityphotoDaiyBusinessNewsMHProNewsGreat announcement, huh?  Here’s my take and on-the-record comments,” said ROC USA President, Paul Bradley to MHProNews. 

Bradley was commenting on an article by Patrick Barnard in Mortgage Orb, that ran under the headline, “New 30-Year Loan Program for Manufactured Homes Launched in New Hampshire.”

Getting a jumpstart on its mandate from the Federal Housing Finance Agency (FHFA) under the new Duty to Serve program that takes effect in January,” stated Barnard, “Fannie Mae is partnering with the New Hampshire Housing Finance Authority (NHHFA) to bring greater liquidity to manufactured home financing market.”

New Hampshire is one of the first states to pass legislation recognizing manufactured homes located in resident-owned communities as real property. This is in contrast to other states, where manufactured homes on leased or communal lands are only recognized as personal property and thus are not eligible for mortgages,” per Barnard’s article.


Bernard added that, “In those cases when a manufactured home is located on leased land, typically the only way to finance it is via a chattel loan. This creates an affordability issue because chattel loans carry much higher interest rates compared with 30-year fixed-rate mortgages.”

Often Overlooked Background

Regular MHLivingNews and MHProNews readers should note that while rates may be higher on a personal property, home only or “chattel loan,” that a federal study by the Government Accountability Office (GAO) documented that the payments on manufactured homes are still lower on average than other forms of housing.


As part of a longer comment, linked here, Bradley stated that Fannie Mae has been making “home only” loans in approved ROC’s since 2008.



Titus Dare. SVP, Eagle One Financial, Credit: MHProNews.

That dovetailed with a statement last year from Titus Dare with Eagle One Financial, who told MHProNews that the GSEs had been making some home only loans.

Bradley told MHProNews, “understand that MH in land lease communities in NH is titled as real estate.  Hence, a lender makes a mortgage loan even if they’re financing only the home. Such a mortgage does not include the land and does not disrupt the underlying commercial financing.”

ROC’s president also said that something similar could be achieved by other community owners.

Now, two things:

  1. This is the very construct that land lease owners could establish.  In fact, it’s what Freddie Mac went to market with in the mid-2000s with a leasehold loan product that required titling as real estate.  Several states created an “opt in” real estate titling law for MH to take advantage of the program.  And, since, the Uniform Law Commission passed an opt in titling law for states to adopt.  It’s all in waiting.
  2. Residential mortgage loans will carry longer terms and lower interest rates than chattel even if the GSEs enter the chattel market with pilots next year.  That’s because mortgage loans are going into existing and very large securities.  Chattel will have a different securitization path.

Bradley’s full comment can be seen by clicking the image above, or his link here.

So, as I’ve said in several industry talks I’ve given on the subject, there are parallels to what we’re doing for industry players interested in providing long-term secure homeownership opportunities.”

Both Bradley and a source in Washington told MHProNews that the Mortgage Orb’s report was in fact a limited program.

But as the industry attempts to navigate the internal and external challenge to achieving meaningful lending by the GSEs, this report, per Bradley, is a “Great announcement.”   ## (News, analysis, commentary.)

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