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Posts Tagged ‘duty to serve’

HUD Secretary Carson “HUDdle Conference” Draws Manufactured Housing Issues Engagement

March 21st, 2019 No comments

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The Daily Business News on MHProNews learned that the Department of Housing and Urban Development (HUD) Secretary Ben Carson, M.D., kicked off their latest ‘HUDle’ meeting at their Washington, D.C. office building.

 

In a statement to MHProNews, here is what the Manufactured Housing Association for Regulatory Reform (MHARR) said today.

MarkWeissJDPresidentCEOManufacturedHousingAssocRegulatoryReformDailyBusinessNewsMHProNewsThe Department of Housing and Urban Development, on March 20, 2019, held the latest in a series of “HUDdle” conferences with invited HUD-program stakeholders.  The conferences, which are an initiative of — and hosted by — HUD Secretary Ben Carson, focus on emerging issues at the Department, including, but not limited to, aspects of its ongoing regulatory reform process,” MHARR said.

Among the manufactured home industry professionals present was Mark Weiss, JD.  Weiss is the president and CEO of MHARR.

MHARR’s president emphasized the urgent need for HUD to address and resolve two key issues that continue to suppress the availability of inherently affordable manufactured housing for millions of American consumers, and the economic growth of the industry,” per their statement, which added, “Those two issues are, first, discriminatory zoning laws that exclude or severely restrict the placement of manufactured homes in large areas of the country.  The second is the critical need for reform at Fannie Mae, Freddie Mac and the Federal Housing Administration (under the “Duty to Serve” and beyond), to substantially increase the availability of manufactured home consumer financing (and especially personal property or ‘chattel’ financing) to market-significant levels.”

 

MHARR stated that they will be following-up soon with relevant HUD officials to further pursue these key policy objectives.

 

The issues come in the wake of fact-checks and related exposes by MHProNews, which included specific examples of the post-production Manufactured Housing Institute (MHI) was routinely failing to address specific cases spot-checked by MHProNews. Here accessible via the linked text-image box is but one example. Others follow below the byline, disclaimers, and notices.

 

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

 

Placement and financing are post-production, not production related issue, so they fall into MHI’s self-proclaimed bucket of representing “all segments of factory-built housing.”  Topics like this and others will be among the issues addressed at the rapidly approaching “Fix the MH Industry Trick$” meeting a week from today Thursday afternoon at the Tunica Manufactured Housing Show.

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

 

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

 

 

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As Affordable Housing Crisis Rages, New HUD Code Manufactured Housing Shipments Fall, Some States Drop 35-40 Percent

Cha-Ching! Manufactured Housing Made Simple in 2019

 

Fix MH Industry Trick$ – Special Meeting at Tunica Show

 

Smile! You’re on Candid Camera! Security, Casino Hotels, and Fix the MH Trick$ Tunica Event

Local Star Chambers Wage War on Affordable Housing

Dramatic Reversal, City Passes Urgency Ordinance Effectively Banning Manufactured Homes, Front & Back Stories

 

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

MHARR Calls on HUD To Remove Zoning, Placement and Consumer Financing Barriers to Manufactured Homes

“The Illusion of Motion Versus Real-World Challenges”

 

 

 

 

 

 

 

 

 

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

March 12th, 2019 No comments

 

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

 

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

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

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

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

 

Tony:

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

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

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

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

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

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

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

  

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

 

FHFAFederalHousingFinanceAgencyDailyBusinessNewsMHProNews

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

Housing industry to FHFA: Go slow on GSE reform

Letter encourages agency to make affordable housing a priority

March 6, 2019

By Kelsey Ramírez

 

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

 

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

 

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

 

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

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

 

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

 

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

 

1. Preserving what works in the current system

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

Click here to read the letter in full.

 

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

DUTYtoServePaulBarrettoFannieMaeManufacturedHousingIndustryDailyBusinessNewsMHProNews550

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

 

Additional Concerns This MHI Memo Raises?

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

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

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

 

JasonBoehlertManufacturedHousingInstituteSeniorVPLogoMHIlogoQuoteMHProNews

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

 

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

 

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

 

WarrenBuffettBarackObamaWikipediaMotherJonesDailyBusinessNewsMHProNews

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

 

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

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

 

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

 

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

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

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

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

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

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

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

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

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

 

 

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“Waste, Fraud, and Abuse” – FHFA, GSE Federal Oversight Announcement

Update on Fannie Mae Lobbying, and Manufactured Housing Controversy

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

MHI Lender Shakes Up DTS and MLO Rule Discussions

“Thou Shall Not Steal,” $2 Trillion Annually Lost to Lack of Affordable Homes, Making the Manufactured Home Case

Manufactured Housing Association for Regulatory Reform (MHARR) Pressing Fannie Mae, Freddie Mac to Fully Engage on Duty To Serve (DTS)

Chairman Hensarling, Fannie Mae’s Latest “Backdoor Schemes,” Illegalities? MH Connections, Implications

GSE Asked: Will Manufactured Housing Overtake Conventional Homebuilding?

 

Fannie Mae Reports Billions in Manufactured Home Community Deals, Details Others Lack

January 25th, 2019 Comments off

 

FannieMaeReportsBillionsManufacturedHomeCommunityDealsDetailsOthersLackDailyBusinessNewsMHProNews

In a release to the Daily Business News on MHProNews, Fannie Mae (OTCQB: FNMA) said that they have “provided more than $65 billion in financing to support the multifamily market in 2018 with its Delegated Underwriting and Servicing (DUS®) program. Fannie Mae continued to serve as a key source of liquidity by attracting a diverse investor base to purchase our DUS Mortgage-Backed Securities (MBS), while building a profitable and sustainable book of business.”

 

For more than 30 years, the DUS platform has brought stability to the multifamily market. Our innovative thinking is driving the industry forward and our commitment to serving our customers remains our top priority,” said Jeffery Hayward, Executive Vice President of Multifamily, Fannie Mae. “Our lender partnerships are also propelling Fannie Mae to be part of a global movement to transform rental housing to be healthier for residents and to help reduce energy and water consumption at the properties we finance.”

The Government Sponsored Enterprises (GSE) of Fannie Mae and Freddie Mac have both been given some latitude by the Federal Housing Finance Agency (FHFA)) for using certain qualifying loans on manufactured home communities as credits toward their Duty to Serve (DTS) requirements. Right or wrong, that use of DTS has been far more robust than it has toward single family manufactured home loans.

Fannie Mae was recognized in 2018 as the largest issuer of Green Bonds in the world, with more than $20 billion in Green MBS backed by either green certified properties or properties targeting a reduction in energy or water consumption. Fannie Mae increased its Green Financing portfolio to over $50 billion in 2018, driven by $20 billion in Green Financing. In 2018, Fannie Mae made LIHTC equity investment commitments towards meeting FHFA’s $500 million volume cap by deploying equity to rural and other underserved housing markets throughout the United States. Additionally, Fannie Mae led the affordable market with overall production of $7.4 billion, an increase of 9% from 2017,” stated their release to MHProNews.

Multifamily had another outstanding year in 2018, thanks to our lenders,” said Rob Levin, Senior Vice President for Multifamily Customer Engagement, Fannie Mae. “Together, we supported all market segments, bringing liquidity to the market, while building a balanced portfolio that reflects our strategy with strong credit quality and mission-rich business.”

The following list are the top 10 DUS Lenders produced the highest business volumes in 2018. Also listing that follows also includes the Top 5 Lender rankings for highest volumes in 2018 for Multifamily Affordable Housing, Small Loans, Green Financing, Seniors Housing, Structured Transactions, Manufactured Housing Communities, and Student Housing:

 

Top 10 DUS Producers in 2018             Volume ($Billion)

  1. Wells Fargo Multifamily Capital                      $8.1
  2. Walker & Dunlop, LLC                                    $6.9
  3. Berkadia Commercial Mortgage, LLC             $6.6
  4. CBRE Multifamily Capital, Inc.                        $6.1
  5. Newmark Knight Frank                                    $4.3
  6. Greystone Servicing Corporation, Inc.            $3.9
  7. Capital One, National Association                   $3.8
  8. KeyBank National Association                         $3.4
  9. PGIM Real Estate Finance                              $3.3
  10. Arbor Commercial Funding I, LLC                   $3.2

 

Top 5 DUS Producers for Multifamily Affordable Housing in 2018

  1. Wells Fargo Multifamily Capital
  2. CBRE Multifamily Capital, Inc.
  3. Greystone Servicing Corporation, Inc.
  4. PGIM Real Estate Finance
  5. Jones Lang LaSalle Multifamily, LLC

 

Top 5 DUS Producers for Small Loans in 2018*

  1. Greystone Servicing Corporation, Inc.
  2. Arbor Commercial Funding I, LLC
  3. Hunt Mortgage Group
  4. Walker & Dunlop, LLC
  5. Bellwether Enterprise Real Estate Capital, LLC

 

Top 5 DUS Producers for Green Financing in 2018

  1. Berkadia Commercial Mortgage, LLC
  2. Greystone Servicing Corporation, Inc.
  3. Arbor Commercial Funding I, LLC
  4. CBRE Multifamily Capital, Inc.
  5. Capital One, National Association

 

Top 5 DUS Producers for Seniors Housing in 2018

  1. Berkadia Commercial Mortgage, LLC
  2. Grandbridge Real Estate Capital, LLC
  3. Capital One, National Association
  4. CBRE Multifamily Capital, Inc.
  5. M&T Realty Capital Corporation

 

Top 5 DUS Producers for Structured Transactions in 2018

  1. Wells Fargo Multifamily Capital
  2. Newmark Knight Frank
  3. Walker & Dunlop, LLC
  4. PNC Real Estate
  5. Berkadia Commercial Mortgage, LLC

 

Top 5 DUS Producers for Manufactured Housing Communities in 2018

  1. Walker & Dunlop, LLC
  2. Wells Fargo Multifamily Capital
  3. KeyBank National Association
  4. Berkadia Commercial Mortgage, LLC
  5. Capital One, National Association

 

Top 5 DUS Producers for Student Housing in 2018

  1. Wells Fargo Multifamily Capital
  2. Walker & Dunlop, LLC
  3. CBRE Multifamily Capital, Inc.
  4. PGIM Real Estate Finance
  5. KeyBank National Association

 

Listed below are 2018 production highlights for individual business categories, which are included in the total multifamily production number.

  • Affordable Housing – $7.4 billion comprised of $6.0 billion in Multifamily Affordable Housing (for rent-restricted properties and properties receiving other federal and state subsidies), an increase of 10 percent from $5.4 billion in 2017; and $1.4 billion for properties with rent restrictions between 60 percent and 80 percent AMI, in line with $1.4 billion in 2017
  • Small Loans* – $2.2 billion
  • Green Financing – $20.1 billion (properties with Green Building Certifications or loans targeting a 25 percent reduction or more in energy or water consumption)
  • Student Housing – $2.7 billion
  • Structured Transactions – $9.5 billion
  • Seniors Housing – $2.3 billion
  • Manufactured Housing Communities – $2.9 billion, an increase of 56 percent from $1.9 billion in 2017

Footnotes:

*Small Loans are defined as loans of $3 million or less nationwide and $5 million or less in high-cost markets, and typically finance multifamily properties with five to 50 units.

**Due to rounding, amounts reported may not add up to overall totals.

The above is insightful on several levels.  First, note that more than one of those manufactured home community DUS lenders has ties to Berkshire Hathaway.

Next, is that this is arguably part of the give-take mechanism that Arlington, VA based Manufactured Housing Institute (MHI) has used to get some of their community members in the National Community Council (NCC) to swallow and ignore the single-family chattel lending that the Manufactured Housing Association for Regulatory Reform (MHARR) has stressed should be at the core of DTS by the GSEs.

 

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It also brings back into focus what some in manufactured housing call the “sell-out” or “betrayal” of the industry’s independent producers of manufactured homes. How so?  Consider this from Fannie Mae’s own site, which stresses their ‘support’ for manufactured housing as:

  1. A) The Multifamily Manufactured Housing Communities Market . …
  2. B) Develop an enhanced manufactured housing loanproduct for quality manufactured (homes)…

It must not be forgotten that MHI leaders held closed door meetings with Fannie and Freddie, to which none of the parties have released the meeting minutes, that ultimately resulted in the “new class of homes” program that has emerged…

…and so far has landed with a thud.  While Fannie and Freddie are both mum on specifics, the new HUD Code manufactured home shipments data is all the proof that is needed.  That data, combined with anecdotal information from various sources have made it clear that little has occurred from the new class of homes, other than noise from MHI, their allies, and Omaha-Knoxville puppet masters.

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

 

Related Reports:

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MHI CEO Dick Jennison’s Pledge – 500,000 New Manufactured Home Shipments

GSEs’ “Duty To Serve Underserved Markets” Plans

Midwest Manufactured Housing Federation Official Louisville Show Communique to MHProNews

 

Independent National Manufactured Housing Post-Production Association Takes Major Step

Production Decline Continues in November 2018

 

 

 

 

 

 

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

December 11th, 2018 Comments off

 ClaytonHomes21stVanderbiltManufacuturedHousingInstituteFannieMaeLogoChoppedLiver

 

It should be a given that the upper management of Clayton Homes, and their Arlington, VA based Manufactured Housing Institute (MHI) are in favor of their stated agendas.

 

 

ManufacturedHousingInstituteMHINewClassofHomesDailyBusinessNewsMHProNews

Still from MHI Video, logos added by MHProNews.

 

No sooner than MHI released their self-promotion video, than the industry’s new home shipments data – those nettlesome facts below – indicated that for all of MHI’s claims of millions of readers, their own emailed statement yesterday reflects the opposite results of what they’ve claimed.

Here are the claims, and the evidence, according to MHI.

 ManufacturedHousingInstitutelogoMHILogoMHIVideoStillsMillionsofViewsDailyBusinessNewsMHProNews

 

Here below is a screen capture of MHI/National Community Council (NCC) Vice President Jenny Hodge’s email on the latest data, per MHI.

 ManufacturedHousingInstituteMHILogoOctober2018HUDCodeHomeShipmentsDeclineDailyBusinessNewsMHProNews

What MHI’s own data and claims logically prove is that for all their bluster, new HUD Code manufactured shipments measured by the seasonally adjusted shipment rate (SAAR) – as of the above – are flat for 2018.  Even if the manufactured home industry finishes strong in the final quarter, what actual good has MHI’s promotions done so far?  

But there’s more sobering words from MHI members.

 

“What are We, Chopped Liver?”

An MHI member producer, in a long phone call to MHProNews, argued that the so-called MHI led “new class of homes” makes no sense, because it would have been easier to have simply built state-coded modular homes.

Another MHI producer said that “KEVIN CLAYTON” supported this “new class of homes” plan – which in that professional’s view – harms the interests of the majority of current manufactured housing plants. 

That source said, What are we [meaning the balance and majority of HUD Code manufactured housing production], chopped liver? 

 

The Genesis…

Here’s how a MHI-only member producer explained it in a message to the Daily Business News on MHProNews.

Three years ago I took a group from Fannie Mae through a plant to tour to show what we were building… they were blow away… made you feel they don’t get out much to see what we are building… Surely, good would come from this to obtain better financing on our homes for all [of the manufactured home] industry,” said the message to MHProNews’ tip line.

Fast forward to the roll out of the new class of homes financing…This a slap in the face,” said that production veteran, adding “…what are we chopped liver! Our HUD code is not good enough?

Why [a] 5:12 pitched roof? Many, many factories today will not build that when they have back logs of 3 to 6 months.” He added a laundry list of specs between standard HUD Code production, and the specs that Fannie Mae and Freddie Mac want to see in this Clayton/MHI led “new class of homes,” including, “100% drywall… Why? You cannot see that from the street… let the consumer chose that.”

A number of professionals said that this plan was not only developed by Clayton, it obviously could benefit their new conventional housing subdivisions, which that from has been purchasing in recent years.

Warren Buffett has said that they expect to buy more site building opportunities.

Fannie Mae, Clayton, and MHI – to name but three key organizational players – are attempting to move the industry in a direction that arguably contradicts Kevin Clayton’s own statement from a few years ago.  Some may recall Clayton saying that the industry should not to forget those “that brought you to the dance.”

 

WarrenBuffettKevinClaytonClaytonTinyHouseBerkshireAnnualMeetingDailyBUsinessNewsMHProNews

 

But that new class plan is arguably just what the new GSE connected lending does. It ignores the majority of the industry’s products and consumers in favor of a minority. 

Furthermore, the industry’s HUD Code producers have long been able to build entry-level or residential style products. MHLivingNews articles and videos have made that consumer choice option apparent.

As more than one HUD Code builder proves, you can have residential style homes that are less expensive than these new class of homes will be, and they are proven to attract conventional new home buyers. 

manufacturedhomecollage-entrylevelcapecodmultisectionalsinglesectional-creditmanufacturedhomelivingnewsmhlivingnews

There are markets for each of these styles of homes, and consumers ought to have the ability to chose that home based upon their budget, circumstances, and desires. Builders should be allowed to build whatever the want to as well. That said, what this new class of homes does is bend the system in an artificial way, based upon financing that the GSEs were required to provided under HERA 2008 mandated Duty to Serve to Manufactured Housing. Its an apparent manipulation of the system, and sources say that even if this plan is successful, it will harm many for the benefit of a few. But what if this plan is no more successful than Clayton’s iHouse or iHouse 2.0?  Then, not only time and expense are lost, but the reputation of the industry is harmed too.

For example, award-winning retailer Stan Dye said that half of his sales are to people that previously owned a conventional house.  Isn’t that good enough for Clayton, the GSEs, and MHI?

 

 

Logically, given that

      FHFA,

      the National Association of Realtors,

      HUD’s PD&R

      plus other research shows that the millions of current manufactured homes can and do appreciate,

      where is the logic for creating these new and unproven standards?

 

Consider the Track Record… 

Consider the track record Clayton Homes has in such “innovative” product roll-outs. Our sources at Clayton remind readers that the Clayton’s iHouse and the iHouse 2.0 – which were both rolled out with great fanfare, and got significant media attention – both flopped.

Oops.

 

ihouse Clayton Green-Bridge-Farm-i-House-Chevy-Volt-568x378

Ever wonder whatever happened to the Clayton’s iHouse? Not much, so it was quietly dropped, per sources at Clayton. Will this new class of homes be next?  More to the point, will this Clayton-MHI “new class of homes’ harm the value of the current HUD Code manufactured homes in the process?  Photo Green Bridge Farm, the Clayton iHouse is shown with a Chevy Volt, which is also being cancelled by GM. Oops.

 

Thus far, the GSEs are leaving the vast majority of producers and all other HUD Code manufactured homes essentially out. The indications are that this plan purportedly came from Clayton and is obviously being promoted MHI. Why didn’t they back chattel and other lending for millions of proven HUD code standards homes instead? 

Isn’t backing all HUD Code manufactured homes what the Duty to Serve Manufactured Housing part of the law clearly implied? Where in the Housing and Economic Recovery Act (HERA) of 2008 – which gave us the Duty to Serve (DTS) did it say that the GSEs should compel manufactured housing to create entirely different homes before they get lending?

It’s an outrage, which is why that MHI builder said it is “a slap in face.”

 

 

It Gets Worse

This plan, which MHProNews said last year could be a Trojan Horse, is sadly developing in just that fashion. Because sources say that this plan arguably undermines the acceptance – and thus the value – of millions of existing HUD Code homes.

Who says? A parter and association member in a community operation. He’s not alone.

Beyond complaints about the new class and related GSE lending, one source said that when you factor in the additional costs of building to this new class or homes standards that Clayton-MHI are leading, the consumers who buy them are not going to save money, or get lower payments, even with the GSEs lower interest rate.

Recall that in San Antonio last year, in a room with a few dozen MHI members, Tim Williams of 21st said that the Berkshire Hathaway lender’s wants to make sure that the GSEs don’t take only their top tier credit “traunch.”

Well, it seems that this plan currently avoids taking any loans away from 21st or Vanderbilt. So Tim Williams, former MHI Chairman and still 21st President and CEO, will get his wish.

Put differently, this plan if it fails or succeeds, purportedly harms the bulk of would be and existing consumers. It does so to the benefit one major conglomerate that also does site building. The plan is finding quiet resistance on several fronts from MHI’s own members. 

 InfographicMobileManufacturedHomeManufacturedHousingIndustryFactsDataResearchMobileManufacturedHomeLivingNews

 

But the voices are muted because of the Smoking Gun track record.   You can learn more about that by clicking the linked box, below, for that report.

 

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

 

These are some of the explosive comments signaled last week, in the prior report that is linked from the box below.

 

Explosive Comments on Duty to Serve Manufactured Housing Lending from Well Placed Sources

 

Clever Moat Building?

This new class of homes is arguably clever as a tool to eliminate over time more of Berkshire’s competition. By causing some industry firms to invest in a product, it will tend to get those producers ‘dug in’ to continue the plan. They may be following a lead whose Clayton iHouse and iHouse 2.0 both failed. 

But in the meantime, how many thousands of consumers who wanted to refinance 21st Mortgage Corp or Vanderbilt Mortgage and Finance loans – Berkshire Hathaway brands – at a lower interest rate will be left out in the cold? Millions of their HUD Code homes don’t qualify for a program that Congress mandated?  How is that possible, or even sufficient to meet the legal mandates?

Rephrased, this is de facto a head shot against the interests of:

     millions of existing manufactured home homeowners,

     aims at any plants and companies that don’t participate in the plan,

     bending Fannie Mae and Freddie Mac to the will of Berkshire Hathaway, and it was accomplished in closed door meetings that the GSEs, and MHI won’t release the minutes to.

The standards arguably fail in the essence of the Duty to Serve, namely, to provide more lower cost financing for millions of renters.

The American Dream, Arguably Among the Most Profitable, But Least Understood Stories in the USA Today

 

Let the Consumer Choose

The Daily Business News on MHProNews last Saturday said that #HousingChoice should be part of the mantra of the industry’s independents. 

#HousingChoice

Housing Choice, Where Modular, Manufactured, Tiny, Conventional Housing Crisis, MHI and MHARR Intersect

 

Consumers need to be educated to accept what millions have already benefited from. What’s good for consumers is also a strong market for investors, lenders, sellers, communities, suppliers, and others.

Mark Weiss, JD, President and CEO of the Manufactured Housing Association for Regulatory Reform (MHARR) said months ago that the Duty to Serve was a mandate.

 MHARRMarkWeissIfCongressHadMeanttheDutytoServeToBeOptionItWouldNotHaveCalledItADutyDefintionofDutyIsMandatoryResponsibilityDailyBusinessNewsMHProNews

 

Weiss also argued that this roll out of the GSE program was set to benefit only a few companies.

 

ManufacturedHousingAssocRegulatoryReformMHARRMarkWeissDTSFHFA-GSEsGoingtoLargestBusinessesCorpAffiliatesDailyBusinessNewsMHProNews

Collage by MHProNews.

 

It’s not MHI’s VP Jenny Hodge’s fault if new manufactured home shipments are declining. MHI’s president is said to “turn red” when embarrassed or upset. So, how “red” does Richard ‘Dick’ Jennison glow today, after he’s done reading this analysis? 

How red with anger will resident groups become once they figure out that Berkshire Hathaway and MHI – which they arguably dominate – plus the GSEs have ignored them in favor of more expensive housing?

How mad will community owners be if they map out the trend lines, and realize that this plan shafts them too?

Clayton, MHI, and the GSEs won’t formally respond to such concerns. But MHProNews has had tips from ‘inside’ this program, on the GSEs side of the fence.

 

ManufacturedHousingProNewsMHProNewsConfidentialTipsDocumentsNews

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

 

As one of those sources experienced in financing told MHProNews, the way this program was developed was “completely backwards.” Instead of listening to the industry, and finding ways to meet the needs, the GSEs dictated standards that were set only for this new class of homes. 

The evidence and the comments from an array of sources suggest that this is no accident. It was an arranged plan. It was rigged from the GSE side, and from the producers side. This plan was unveiled in Las Vegas, we are told that many walked out of the presentation in disgust or protest.

Manufactured Housing Institute “Walk Out,” “Cover Up,” and Shock at their Vegas Event

 

It’s as that MHI producer said, a slap in the face of the industry. And MHI now wants members to open up their checkbooks and renew their association membership for a plan their biggest member logically engineered, aimed at harming their own interests.

 

 

SoTheAssociationMHIIsNotThereFortheIndustryUnlesstheinterestsoftheBigBoysJointheIndustry'sMartyLavinMHIAwardWinnerQuoteMHProNews

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

 

It was on a different topic that Marty Lavin said it, but doesn’t it apply here?  As an MHI Producer said, “This program clearly was not “duty to serve.

Based upon the evidence and the track record, MHProNews advises the industry’s members to explore their options with MHARR, MHIdea and NMHCO. More on this in the links below and the days ahead.We Provide, You Decide.” © ## (News, analysis, and commentary.)

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

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

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Housing Choice, Where Modular, Manufactured, Tiny, Conventional Housing Crisis, MHI and MHARR Intersect

December 1st, 2018 Comments off

 

ClaytonHomesLogoManufacturedHousingInstituteLogoAssocRegulatoryReformHousingChoiceWhereModularTinyConventionalHousingCrisisSolutionMeets

Photos from Clayton website, and the logos are the properties of their respective organizations, provided here under fair use guidelines for news media. Text graphics and collage by MHProNews.

It is one of the most controversial issues in the manufactured housing industry today.  Through their apparent power at the Manufactured Housing Institute (MHI), Clayton Homes has backed the notion of a “new class of manufactured homes.”

 

It is a thorny issue, as there are various, divided views on the matter.

 

Certainly, every company has the right and ability to act according to its own perceived interests, within the norms of the law and ethical restraints.

  • If a production company so desires, it can build widget shaped homes and call it a new class of manufactured homes.
  • A firm or organization could say that all new homes should have bull-nosed exterior corners or inverted pyramid shaped roofs in order to get special financing from Fannie Mae or Freddie Mac.
  • Or one could use less esoteric notions, and opt instead for making gutters, downspouts, higher-pitched roofs, and garages available options.

But such details have arguably been incorrectly framed from the start.  Shouldn’t buyers of whatever kind of home they want that meets basic safety, energy, and durability standards be given equal choice for housing in the marketplace, and for financing too?

Rephrased, shouldn’t there be a simple mantra ofhousing choice applied?

The Government Sponsored Enterprises (GSEs) of Fannie Mae and Freddie Mac have a federal legal mandate since 2008 that they somehow managed to dodge for a decade. Now, instead of offering the lower-cost home-only lending that about 80 percent of manufactured home customers select, instead, they provided a program that is only useful for a new, untested, and special kind of HUD Code home?

  • That special kind of home is what Clayton said they wanted, why?
  • And why is that GSE lending pushing a program that is only for land-home loans, which leaves most land-lease communities and the bulk of the retail sales of manufactured homes out in the cold?
  • How do those forced-fits foster housing choice?

 

Housing Choice Should Become Part of the MH Industry’s Mantra

  • Shouldn’t those who want to buy an already federally regulated HUD Code manufactured home be allowed to choose that or any other kind of safe and durable housing they want and are able to purchase?
  • Shouldn’t all housing shoppers who can demonstrate the decades of proven durability of their housing choice be allowed to have the same kind of financing options that conventional housing buyers have been able to access for decades?
  • Shouldn’t home buyers have the right to buy an entry-level or residential-style HUD Code manufactured homes with parity of financing?
  • Isn’t parity of financing an important part of how potentially millions of more price- and payment-sensitive renters can afford to buy a home of their own?
  • So if the clear logic of all of the above are obvious, why did MHI, Fannie Mae, and Freddie Mac hold closed door meetings – refusing to release the minutes of said closed door meeting discussions – which resulted not in more chattel lending, but rather in loans geared only to this so-called, ‘new class of manufactured homes’ that are backed by Clayton?

 

Affirmatively Furthering Fair Housing, a Novel Yet Proven Solution to the Affordable Housing Crisis That Will Create Opportunities, Based Upon Existing Laws

 

Isn’t this new class of homes – and their accompanying Fannie and Freddie lending – just another back-door or oblique way of blocking access to more low-cost lending? Isn’t that effort obviously being led by the Berkshire brands in manufactured housing?  Doesn’t it remind you of the blast-from-the-past, courtesy of 21st Mortgage Corp, that is shown in their letter below?

 

21stMortgageCorpTimWillamsJune112009LetterBerkshireHathawayWarrenBuffettClaytonHomesManufacturedHousingIndustryDailyBusinessNewsMHProNews

Click the image above to download a larger sized version of this 21st Mortgage Corp Letter.

 

Isn’t this new class of homes merely a revised and open version of Smoking Gun 3, where 21st Mortgage cut off lending to thousands of operations that didn’t carry Clayton product?  See the linked report that follows immediately below, plus more related reports further below for added details.

 

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

 

We Already Have Had State Coded Modular Homes for Decades, So, Why this ‘New Class’ of HUD Code Homes?

Several voices from various parts of the industry have noted that modular housing already – on paper – had access to the same land/home mortgage lending that conventional housing enjoys.

Indeed, FHA, VA, and USDA already give parity of lending to HUD Code manufactured homes, as well as modular housing, so long as a proper installation and other lending guidelines are met.

Many manufactured home producers already built both “HUDs” and state-coded modular homes.

But HUD Code manufactured homes have widely outsold modular home building for decades. MHI’s own periodic data reflects that point.

When the goal for thousands of land-lease manufactured home communities, hundreds of manufactured home retailing independents, and MHARR has long been to get the GSEs to fully support manufactured homes with personal property loans, where was the logic of MHI pushing ‘behind closed doors’ the use of GSE lending only [???] for this new class of homes?

Hold that thought.

Hold that notion closely, because what the stated goal of MHARR and MHI began with on Duty to Serve seemed on the surface to be the same thing.  That was the apparent intersection, on paper, that virtually everyone in MHVille said they wanted more lending from the GSEs.

But what MHI ended up doing was redirecting their energy to get GSE lending only for their so-called ‘new class of homes.’  Even the new MHI self-defense, self-promotion video makes that reality a key point, as the screen capture from their new video below reflects.

 

LeveragingMomentumCreationNewClassofManufacturedHomesManufacturedHousingInstituteMHILogoDailyBusinessNewsMHProNews600

Screen capture with commentary and MHI’s logo are a collage by MHProNews, which faithfully reflects their “We’re Using Our Momentum Leveraging the Creation of a New Class of Manufactured Homes.” First, what momentum? Second, why the need for a new class of homes? Manufactured housing builders have made residential style homes since at least the 1980s. Buyers could always option in or do on-site whatever they wanted and can afford. It’s therefor a head fake, an apparent ruse that seemingly limits GSE lending to only a tiny sliver of the market that could already be served by modular coded factory-built homes, or by existing residential style HUD Code manufactured homes. This new class of homes is a costly waste of time, save for the fact that it diverts lower-cost financing. Who benefits from that fact?  A monopolist, perhaps?

BloombergShipmentNewManufacturedHomesFactoryBuildRebuildDailyBusinessNewsMHProNews

Third-party to the industry Bloomberg’s shipment data of HUD Code homes reflects that there is a modest recovery, but that the manufactured home industry is still about 75 percent below its 1998 high water mark hit during the last 30 years.

If you want to sell more manufactured homes, this new class of homes is utterly illogical on the surface.  Manufactured housing roared during the 1990s compared to today.  Some claim it was only a sugar-high, based only on bogus lending.  But that claim ignores the reality that those home buyers wanted a manufactured home in the first place. In the mid-to-late 1990s and early 2000s, numerous researchers believed that the EXISTING class of HUD Code manufactured homes was the solution to the affordable housing crisis.

EricBelksyManufacturedHousingIndustryManufacuredHomeManufacturedHousingInstituteResearchDataAffordbleHousingMHProNewsDailyBuisnessNews575

Why did Belsky miss his predicted date? Because it came before Buffett’s entry into MH? See Smoking Gun 3.

So why this need for a new class of homes?  Why not rediscover the proven affordable HUD Code homes, already improved by the Manufactured Housing Improvement Act of 2000?

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

 

If you want to encourage the acceptance of HUD Code manufactured homes, then this Clayton/MHI backed ‘new class of homes’ is demonstrably counterproductive on the surface.

Keep in mind that a researcher for the Fannie Mae Foundation some two decades ago already noted back then that manufactured homes merited better lending, placement, zoning, and other treatment. Such facts alone should make it hard for a GSE today to backtrack on their own foundation’s research.  For that report, see the link below.

 

“Why Advocates Need to Rethink Manufactured Home Quality,” Harvard, GSE, Genz, “High Satisfaction”

 

So, this new class of homes makes no sense, unless – unless – there is a hidden or unstated agenda?

  • Is this new class of homes just another monopolistic ploy to expand Berkshire’s Moat in MHVille?
  • And as has been noted previously, isn’t this once more using access to capital or lending to harm the interests of the majority of producers, in favor of one that is also selling site built housing?

 

Machiavellian “Godfather” – Sam Zell, Warren Buffett, Capital, Lending and Crossed Lines in Manufactured Housing

 

The Risk to Existing Manufactured Home Owners

Furthermore, isn’t there an obvious risk that the value of millions of existing manufactured homes will be undermined by this so-called new class of homes?

That isn’t a merely rhetorical question.  Because a senior contact with one of the GSEs admitted to MHProNews that it was a potential hazard.

How would millions of manufactured home owners react to not only not getting GSE chattel lending, but instead, having Clayton-led MHI working in a fashion that undermines the resale values of their homes?  Doesn’t that open the door to a possible class-action lawsuit, against the GSEs, MHI, and Clayton?

An MHI-only member messaged the following to our publisher this week, “You seem to have [a] conceptual IQ that is more important than spelling ability.” That’s nice and clever, but the matter is simply deductive reasoning or logic.

Everything that MHI has done with respect to their so-called new class of homes has been aimed to sideline opposition to it. That isn’t ‘forging consensus,’ is it? Isn’t that silencing opposition or reason-based concerns?

Isn’t what Clayton/Berkshire Hathaway lenders in manufactured housing want is to keep their choke-hold on lower-cost home lending, while promoting their own growing interests in conventional housing, all at the same time?

 

WHERE IS THE LOGIC OF HAVING MANUFACTURED HOMES THAT MAY AS WELL BE MODULARS?

Unless it was to derail GSE lending, and harm independents, all by another slight-of-hand?

All magic tricks are gimmicks, ploys – tricks. The hand is quicker than the eye. Something looks or sounds cool and good, and razzle dazzle presentations are built around it with high-cost consultants who will naturally say what the ones who wrote the check want said. That’s what a state association executive, an MHI member, has told MHProNews.

Some people will always follow a given con, that’s why tricks exist – they work on some people.

This new class of homes is a purported trick, and that is arguably why Richard ‘Dick’ Jennison would not go on with his public presentation at Louisville last January. He apparently feared having to answer questions from the Daily Business News or from members of the audience, who came armed with questions supplied by MHProNews.

 

 

It is also why Fannie Mae arguably cancelled an interview with MHProNews that their media contact had already agreed to do.  What caused that last minute cancellation?  Note that they cancelled only after they knew that among our questions would be some that focused on the genesis of how this new class of homes.

It’s Clayton and MHI, isn’t it?  How else does one explain that BOTH GSEs wanted the same thing?

 

MHARR Exposes GSES’ Failure On Chattel Financing Before Congress

 

What’s Overlooked

The genius of the HUD Code is performance-based standards that superseded other local housing code stipulations. That performance based method keeps housing costs lower for marginal buyers who won’t qualify for $150,000-$225,000 priced housing. Yet the HUD Code achieves that without sacrificing safety or durability.

MostMenAppearnNeverConsideredWhatHouseIsNeedlesslyPoorAllTheirLivesHenryDavidThoreauManufacturedHomeLivingNews

All of the above are HUD Code manufactured homes, built years before the Clayton-MHI backed new class of homes. Newcomers to the website not familiar with modern manufactured homes, learn more by clicking the image above or the link here.

 

There have long been those who argue the HUD vs MOD matter.  Our publisher said years ago that all of factory-built housing should agree not to undermine each other’s products.  Automakers don’t undermine entry-level cars when selling a Rolls Royce. Besides, more expensive modular homes can have their own headaches, as do site built housing, as a new report yesterday underscored.

 

“No Good Deed” – Brad Pitt, Make It Right Foundation Sued for Defective Modular Housing, NBC News, More Video

 

  • Let modular builders do whatever the law allows.
  • Let HUD Code builders build entry-level or more residential-style homes, in any ethical manner that they wish.
  • Ditto for tiny housing, prefab, conventional builders, and so on down the list of legitimate, safe and durable housing providers.

But the Housing and Economic Recovery Act of 2008 (HERA) which gave the Government Sponsored Enterprises (GSEs) of Fannie Mae and Freddie Mac the Duty to Serve Manufactured Housing didn’t mandate any changes to the federal HUD Code.  The GSEs should be providing lending on entry level HUD Code homes, including chattel loans, not just on these pricey new semi-modular housing units.

ManufacturedHousingAssocRegulatoryReformMHARRMarkWeissDTSFHFA-GSEsGoingtoLargestBusinessesCorpAffiliatesDailyBusinessNewsMHProNews

Collage by MHProNews.

 

This new class of homes is arguably a Trojan Horse, a blind alley, a grifters trick.

YouGetMoreOfWhatYouEncourageLessofWhatYouDiscourageMartyLavin

The logic of this statement can be applied to a variety of cases.

 

And sadly, the money trail and evidence – see links below – point to Clayton, 21st and Vanderbilt engineering this via MHI. That means that better lending would be unavailable to the majority of potential manufactured housing customers, as well as to those in communities or private land that may want to refinance their high cost Berkshire Hathaway loans at a lower rate.

 

KennyLipschutzQuotePoorJobOfLobbyinginMHIndustry-postedMHProNews48thMHINCClist

The charade calls for a federal investigation into MHI and the manufactured housing industry’s Berkshire brands, which sources suggest may already be underway.

SoTheAssociationMHIIsNotThereFortheIndustryUnlesstheinterestsoftheBigBoysJointheIndustry'sMartyLavinMHIAwardWinnerQuoteMHProNews

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

 

Housing Choice should become part of the industry’s mantra. For our part, we will spotlight those issues that obscure the common-sense of making manufactured housing another ‘affordable housing choice‘ that home seekers can make with their heads held high, without having to jump through any special and limiting hoops.

 

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

There’s more to come on this in the days ahead, so stay tuned to the only source in manufactured housing trade media that tackles the tough topics with facts, evidence, money trail, reason, and moxie. See the related reports, further below. “We Provide, You Decide.” © ##(News, analysis, and commentary.)

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Related Reports:

“Take the MH Advantage Challenge – Can You Tell the Difference?” Fisk of Sarah Edelman, Director of Duty to Serve, Single-Family Mortgage Business for Fannie Mae

GSEs’ “Duty To Serve Underserved Markets” Plans

 

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

Warren Buffett, Charlie Munger, Fannie Mae, Freddie Mac, Berkshire Hathaway Backstory

Machiavellian “Godfather” – Sam Zell, Warren Buffett, Capital, Lending and Crossed Lines in Manufactured Housing

Bloomberg “New Home for $90,000? Manufactured Housing Is Making a Comeback” Reveals MH Media Challenge

 

Secretive “NEW” Class of Manufactured Housing Raises Serious Concerns

FHFA Comments on Duty to Serve Manufactured Home Lending due by Midnight Tonight, with MHProNews Regulatory Comments

November 2nd, 2018 Comments off

 

FHFAlogoCommentsDutytoServeManufacturedHousingFannieMaeDailyBusinessNewsMHProNews

As a reminder to readers, the Federal Housing Finance Agency (FHFA) said the following last month about a request by Fannie Mae to modify their Duty to Serve (DTS) manufactured housing plan.

Here’s the release below, which will be followed by the MHProNews attached comments and related links.

 

FHFANewsReleaseDailyBusinessNewsMHproNews

 

Washington, D.C. – The Federal Housing Finance Agency (FHFA) has announced that it is requesting public input as part of the Agency’s consideration of proposed modifications to Fannie Mae and Freddie Mac’s (the Enterprises) 2018-2020 Underserved Markets Plans (Plans) under the Duty to Serve program. 

The Duty to Serve regulation allows an Enterprise to request to modify its Plan at any time.  However, FHFA must provide a non-objection to a proposed modification for them to become part of an Enterprise’s Plan.  FHFA has determined that public input would be helpful in considering four of Fannie Mae’s twenty-two proposed modifications that would each make a substantial change to the content of its Plan.  Freddie Mac has submitted one modification that FHFA considers to be a modest correction and, as a result, FHFA is not seeking public input on this proposal.  Enterprise technical edits are not subject to public input or FHFA’s Non-Objection.

FHFA requests public input on the proposed modifications to the 2018-2020 Underserved Markets Plan by Nov. 2, 2018 via the dedicated Duty to Serve page on FHFA’s website at www.FHFA.gov/DTS or via mail to FHFA Division of Housing Mission and Goals, Seventh Floor, 400 Seventh Street SW, Washington D.C. 20219. 

About Duty to Serve

FHFA issued a final rule on Dec. 13, 2016 to implement the Duty to Serve provisions mandated by the Housing and Economic Recovery Act of 2008.  The statute requires the Enterprises to serve three specified underserved markets – manufactured housing, affordable housing preservation, and rural housing – by increasing the liquidity of mortgage investments and improving the distribution of investment capital available for mortgage financing for very low-, low-, and moderate-income families in these markets. 

The rule requires each Enterprise to adopt a three-year Underserved Markets Plan detailing the specific objectives and activities they plan to implement to fulfill this mandate.  The activities proposed by the Enterprises will continue to be subject to FHFA review and non-objection to ensure compliance with the Enterprises’ charter acts, safety and soundness standards, and other conservatorship and regulatory requirements.  These Plans went into effect on Jan. 1, 2018. 

Submit Input

##

Our publisher’s regulatory comments on AFFH are linked here, and are to be considered as part of our submission to the FHFA.

Our publishers comments on DTS are linked here.  It includes what should be headline news.

See the related reports, linked further below. “We Provide, You Decide.” © (News, analysis, and commentary.)

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Related Reports:

“Take the MH Advantage Challenge – Can You Tell the Difference?” Fisk of Sarah Edelman, Director of Duty to Serve, Single-Family Mortgage Business for Fannie Mae

 

Chairman Hensarling, Fannie Mae’s Latest “Backdoor Schemes,” Illegalities? MH Connections, Implications

 

Duty to Serve (DTS) Manufactured Housing “Confidential Documents,” Draft and Downloads, FHFA, GSEs

 

Warren Buffett, Charlie Munger, Fannie Mae, Freddie Mac, Berkshire Hathaway Backstory

September 26th, 2018 Comments off

 

FanniMaeFreddieMacLogosGuruFocusBerkshireHathawayLogoCharlieMungerWarrenBuffettHollyLaFonPhotosDailyBusinessNewsMHProNews600

Arguably at the heart of the affordable housing crisis is an access to lending for the most affordable homes built in America, manufactured homes.The Enterprises” of Fannie Mae and Freddie Mac are mandated by the Housing and Economic Recovery Act (HERA 2008) to support manufactured home lending under the ‘Duty to Serve,’ or DTS for short.

 

The “Federal Home Loan Mortgage Corp. (FMCC) (Freddie Mac), a government-sponsored home mortgage lender, was delivering 23% returns on equity and trading for less than eight times estimated earnings when Buffett touted the investment to Fortune Magazine in 1988,” writes Holly LaFon, an editor for GuruFocus.

You’ve got a low price/earnings ratio on a company with a terrific record,” Buffett told the magazine. “You’ve got growing earnings. And you have a stock that is bound to become much better known to equity investors.”

The Fortune article cited factors why Berkshire Hathaway Chairman Buffett and Charlie Munger, the Vice Chairman of Berkshire, were particularly attracted to Freddie Mac. ”I can’t think of a more tangible compliment to the stock than to buy every damn share we are allowed to,” Munger said.

By 2000, Berkshire was the largest shareholder of Freddie Mac, said LaFon, explaining that the “stock had soared to between $41 and $64 per share, for a sizable gain. His view on it changed, though, and he unloaded nearly all of his Freddie Mac and Fannie Mae shares that year, according to his testimony to the U.S. Financial Crisis Inquiry Commission in May 2010.”

HollyLaFonGuruFocusLinkedInCompositeDailyBusinessNewsMHProNEws

Brad Bondi, deputy general counselor of the commission, asked if Buffett if he sold because the stocks were no longer good investments.  Per GuruFocus, Buffett responded that he “didn’t know they weren’t going to be good investments” but became “concerned” about their management.

The Motley Fool, another investment-focused operation, said that Buffett colorfully said: I figure if you see just one cockroach, there’s probably a lot.”

They were trying to -– and proclaiming that they could increase earnings per share in some low double-digit range or something of the sort,” Buffett reportedly said. “And any time a large financial institution starts promising regular earnings increases, you’re going to have trouble, you know?”

Now, they are dealing essentially with government-guaranteed credit, so we know about that and we had it ratified subsequently about what has happened,” Buffett said. “So, here was an institution that was trying to serve two masters: Wall Street and their investors, and Congress.”

And the truth was that they were arbitraging the government’s credit, and for something that the government really didn’t intend for them to do,” the Berkshire chairman told the commission. “And, you know, there is seldom just one cockroach in the kitchen. You know, you turn on the light and, all of sudden, they all start scurrying around. And I couldn’t find the light switch, but I had seen one.”

The Daily Business News reported recently on a related commentary by Forbes contributor, David Marotta, who said that in 2012, that the entire presidential race should come down to a single question. “Who caused the financial crisis of 2008?” By the sounds of Buffett’s testimony, he didn’t cause it, but he did apparently believe that there was a crisis coming.

That crash, combined with other maneuvers linked below, led to a historic drop in manufactured housing shipments.

Figure1MobileManufacturedHomeSalesSHipmentsVsExistingingNewHouseSalesManufacturedHousingiinudstryDataMHProNews

Freddie Mac and Fannie Mae’s stock prices did not begin to crash until seven years later in 2007 when mounting home foreclosures led to unsustainable losses. In 2008, Buffett passed when Freddie Mac approached him about participating in a capital infusion. See that related report later, at the link below.

President Jimmy Carter Blasts Trump Administration on Affordable Housing, Carter’s Manufactured Home Ties

They’re [the GSEs, Fannie and Freddie] looking for help, obviously. And the scale of help is such that I don’t think it can come from the private sector,” Buffett told CNBC. Fannie and Freddie are still under the supervision of the Federal Housing Finance Agency (FHFA).

As regular Daily Business News readers know, there’s been a swirl of controversies around Mel Watt, FHFA, the GSEs, and the tepid way that the GSEs are meeting the decade old required Duty to Serve (DTS) manufactured housing. See related reports, further below.

Recall too that earlier this year, GuruFocus and Seattle Times, both did reports on Clayton Home and allegations of how Buffett’s manufactured housing brands engaged in monopolistic practices.

Seattle Times -Federal Investigations-Berkshire Hathaway’s Clayton Homes, GuruFocus Spotlights Buffett’s Clayton’s “Unethical,” Monopolistic Moat

There is no questioning the overall Buffett and Munger success at operating Berkshire’s investments. But does this once more spotlight some of the ways that success has occurred.  Upcoming related reports will be forthcoming in the days ahead. Stay tuned, and sign up for our emailed updates, further below at the right. That’s this evening’s “News through the lens of manufactured homes, and factory-built housing” © where “We Provide, You Decide.” © ## (News, analysis, and commentary.)

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Related Reports:

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

 

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

The Rich, Famous, PreFab Homes, Manufactured Housing, Hypocrisy, and You

 

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

August 10th, 2018 Comments off


ManufacturedHousingMythVsFactFreddieMacDutyToServeDailyBusinessNewsMHProNews

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?
ManufacturedHousingMythVsFactFreddieMacDutyToServeManufacturedHousingIndustryDailyBusinessNewsMHProNews

Download the full size document, at this link here.

  • What might have made this handout intended for home-shopping consumers better?
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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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SoheylaKovachDailyBusinessNewsMHProNewsMHLivingNewsSubmitted by Soheyla Kovach to the Daily Business News for MHProNews.com. Soheyla is a managing member of LifeStyle Factory Homes, LLC, the parent company to MHProNews, and MHLivingNews.com.

 

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

June 5th, 2018 Comments off

FannieMaeIntroducingMHAdvantageManufacturedHomeLoanEvolvingWithIndustry

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.

LawlessOpeningtoRichardJennisonMHIMarkWeissPresidentManufacturedHousingAssocRegulatoryReformMHARRDailyBUsinessNewsMHproNews550x505

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

CEOsDebateOverAffordableHousingOneToutsManufacturedHousingConcernsFoxBusinessManufacturedHomeDailyBusinessNewsMHProNews

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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