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New Report – More Americans Think Bad Time to Buy, Rentals Soar. Manufactured Housing, Opportunities, Takeaways?

January 8th, 2019 No comments

 

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It’s one more #nettlesome data-point that must make a certain CEO in Arlington, VA turn red-faced.

 

According to Fannie Mae, and CNBC,More Americans think it’s a bad time to buy a home.” What’s bad for higher priced homes, and expensive rentals should be good for manufactured homes.  Certainly, that was the case for decades.

Some bullets from the new Fannie Mae and CNBC reports.

  • The share of Americans who think it is a good time to buy a home just dropped sharply, according to a December survey from mortgage giant Fannie Mae.
  • The share of those surveyed who think home prices will go up fell 2 percentage points, and those who expect mortgage rates to drop was unchanged.
  • The share of those who said their household income was significantly higher than a year ago fell compared with November, although it was up slightly from a year ago. Consumers are, however, quite confident about employment.

Mortgage rates declined in December, 2018, from an average 4.85 percent on the 30-year fixed at the start of the month to 4.61 percent on New Year’s Eve, per Mortgage News Daily.

But the financial markets see mortgage rates rising throughout much of 2019.  That means that the December drop was just a temporary. Rates are higher than one year ago.

 

This Should Be Good for Affordable Housing Sellers, But…

These are historically trends that in decades past would have signaled a rise in manufactured home sales.  The data from the National Association of Realtors(NAR) in the graphic/chart below is useful in understanding the longer-term industry trends.

 

Figure1MobileManufacturedHomeSalesSHipmentsVsExistingingNewHouseSalesManufacturedHousingiinudstryDataMHProNews

There are a growing number of industry voices that believe that BH/CMH and MHI have by various action/inaction has kept manufactured home sales at historically low levels. Evidence? See Related Reports and videos, linked below, which quotes and cites BH, MHI, CMH, 21st Mortgage Corp, and other sources.

 

So, while manufactured housing often benefited in years gone by from rising conventional housing and soaring rents, for whatever reason one cares to mention, that is not the case this time.

 

 

To learn more about the most recent new home data in manufactured home production, click the linked text/image box below.

 

Manufactured Home Production Decline Accelerates in November 2018

 

At the very time when near-record numbers of Americans are renting, manufactured homes ought to be rolling, rolling, rolling down the road to their final destinations.

 

 

These facts bely the Manipulative Housing Institute’s (MHI) claims of promoting manufactured housing to tens of millions of potential buyers.  If so, MHI’s self-proclaimed efforts have not only failed to notably move the needle, but in recent months shipments have stalled, and in November, slipped.

It’s a trend that MHProNews has been warning industry professionals, investors, and affordable housing advocates about for months, but has signaled the possibility of this occurrence for years.

What are the causes?

Many, but it could be summed up in 3 letters, a symbol, and one word.  Failure @ P.E.P.  Failure by the Monopolistic Housing Institute (MHI) to effectively Protect Educate Promote the MH Industry with regulators, zoning, and the public at large. Attribute that failure to whatever one wishes to, but the facts remain the same.

 

MonopolisticHousingInstituteLogoMHILogoManufacturedHousingInstiutteLogoLarge

Click here or the image above to learn more.

The solution?

First, understanding the causes of the headwinds that have led the industry to this point in time.

ProblemSolvingZigZiglarFirstStepRecognizetheProblemExistsNextIsProblemOurResponsiblityProblemSolvingVeryImportantDailyBusinessNewsMHProNews

Next, action steps which obviously require leaving the status quo behind.  More on both in the articles linked herein and below.

The rental and mainstream conventional housing data should be causes for manufactured homes to roar, not snore. It doesn’t matter how the ‘powers that be‘ spin it, but the numbers don’t lie. People are entitled to their own opinions, but not to their own facts.

 

YouAreEntitledtoYourOwnOpinions.ButYouAreNotEntitledToYourOwnFactsDanielPatrickMoynihanDailyBusinessNewsMHProNews

 

That’s MH “Industry News, Tips, and Views Pros Can Use,” © at the #1 most-read resource of its kind in manufactured housing, where “We Provide, You Decide.” ©  Here, you find facts, evidence and straight talk, not double-talk or mumbo jumbo. ## (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.

 

Related Reports:

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

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

 

 

 

FHFA Hearing Before Congress Raises GSEs’ Failure on Manufactured Home Chattel Financing

September 28th, 2018 Comments off

FHFAHearingBeforeCongressRaisesGSEsFailureOnManufacturedHomeChattelFinancingDailyBusinessNEwsMHProNEws

The Ford-Kavanaugh hearing wasn’t the only place in Washington, D.C. that charges of sexual misconduct were being publicly discussed yesterday.

 

As was noted by the Daily Business News on MHProNews, the Federal Housing Finance Agency (FHFA), featured a pile-on by members of both parties aimed at Mel Watt. But his time in office is short regardless, and thus the following is the more germane issue to manufactured housing industry professionals.

An extended quote from the release by the Manufactured Housing Association for Regulatory Reform (MHARR), which includes a download at the end of their statement to the Congress.

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Washington, D.C., September 27, 2018 – The Manufactured Housing Association for Regulatory Reform (MHARR), in a submission (copy attached) to the House of Representatives’ Financial Services Committee in conjunction with a September 27, 2018 oversight hearing on regulation of the two “Government Sponsored Enterprises” (GSEs) – Fannie Mae and Freddie Mac – strongly criticized the Federal Housing Finance Agency (FHFA), for failing to implement federal law and, instead, sanctioning the GSEs’ continuing discrimination against lower and moderate-income American consumers seeking to purchase manufactured homes through personal property, or chattel loans.

Specifically, MHARR’s submission emphasizes that under the “Duty to Serve Underserved Markets” (DTS) provision of the Housing and Economic Recovery Act of 2008 (HERA), so-called DTS “implementation plans” developed by the GSEs and approved by FHFA in late 2017, fail to provide for market-significant participation by Fannie Mae and Freddie Mac in the manufactured housing chattel finance market some ten years after Congress, through DTS, specifically directed the GSEs to “develop loan products and flexible underwriting guidelines to facilitate a secondary market for mortgages on manufactured homes for very low, low, and moderate-income families,” including chattel loans. Such chattel loans account for 80% (or more) of the entire manufactured housing market, according to U.S. Census Bureau data.

As MHARR’s submission explains, the so-called Fannie Mae and Freddie Mac DTS “implementation plans,” by failing to provide for market-significant participation in the manufactured housing chattel financing market – beyond tiny, highly-conditional, “pilot programs” that through 2020 would serve, at most, little more than 1% of the manufactured housing market – do not and cannot, by definition, satisfy the express statutory mandate of DTS. Indeed, it is utterly inconceivable that Congress, in adopting DTS, intended for the vast bulk of all manufactured housing purchasers — and potential purchasers — seeking to access the nation’s most affordable source of non-subsidized homeownership, to go unserved under DTS indefinitely and, potentially, forever.

Relying on an alleged lack of chattel loan “performance” data that is a direct result of their own long-term, discriminatory failure to serve the manufactured housing market – that DTS was specifically designed to remedy – Fannie Mae and Freddie Mac instead seek to evade that “duty” indefinitely. As emphasized by MHARR, this will effectively force the 80% (or more) of the manufactured housing purchasers who currently rely on chattel financing to seek loans from one of the existing market-dominant manufactured housing lenders that do not require or seek secondary-market securitization or support from the GSEs and provide such financing at interest rates that are higher than would be the case if the GSEs were significant participants in the manufactured housing chattel market. Even worse, many more potential lower and moderate-income manufactured home purchasers, who might otherwise qualify for a loan, will continue to be needlessly excluded from the manufactured housing market – and from homeownership altogether – because of the higher chattel loan interest rates and monthly loan costs resulting from the GSEs’ continuing discriminatory refusal to fully implement DTS with respect to chattel loans.

MHARR, accordingly, will continue to press for the full implementation and application of DTS to manufactured home chattel loans and will continue to address, through all necessary means (including Congress and the Administration) the ongoing failure of FHFA, Fannie Mae and Freddie Mac to implement DTS in a timely and market-significant manner, thereby depriving lower and moderate-income Americans of the full access to affordable, non-subsidized manufactured homeownership that Congress sought to provide.

In Washington, D.C., MHARR President and CEO, Mark Weiss, stated: “Congress, in its vital oversight role concerninhg FHFA, must hold that agency – and, by extension, Fannie Mae and Freddie Mac, which are being and have been bailed-out with billions of taxpayer dollars — accountable for their ongoing discriminatory failure,more than a decade after-the-fact, to fully implement DTS with respect to the 80% of the federally-regulated manufactured housing market that is represented by chattel purchase-money loans. Affordable homeownership is desperately needed in the United States and is at the core of the GSEs’ statutory mission. Neither FHFA nor the GSEs should be allowed to flout this mission, nor the specific mandate of DTS with regard to manufactured housing chattel loans.”

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

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The download of the testimony by MHARR to the Financial Services Committee is linked here. For more details, see the related reports, further below. “We Provide, You Decide.” © ## (News, analysis, and commentary.)

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

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

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

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

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

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

Related Reports:

Mel Watt – FHFA and MH Connected Hearing Today to Feature Sexual Misconduct Allegations

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

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

Outstanding Tax Bill at Issue

November 26th, 2012 Comments off

According to myfoxpointnow, Milwaukee, Wis.-based MHC owner Asset Development Group’s value was assessed nearly seven times more in 2008 and 2009 than in the following two years due to failure to file a statement of personal property for the earlier years. While the firm has paid its taxes for 2010 and 2011 in the village of Fox Point, WI, unpaid taxes for its assessed valuation of $522,800 and $668,800 in ’08 and ’09, respectively, continue to accrue, and the bill is now up to $47,926. Despite repeated phone calls and statements from the village treasurer and the assessor to the company during that two-year period, there was no response. Asset Development’s new CFO, James McKevitt, blamed past mismanagement for the problems, saying the previous CFO is facing charges of embezzlement. While the village is considering litigation, KcKevitt sent a $7,157 check based on a previous valuation, asking that it be considered payment in full. Asset Development’s Dirk Hausmann, while acknowledging past missteps, says “This is one of several problems that have been on our plate,” he said of the delinquent taxes. “It’s not the character of the company to just ignore this sort of thing.” As MHProNews has learned, the village board may consider the matter in the future. Fox Point borders Lake Michigan just north of Milwaukee.

(Photo credit: progressive housing)

FSOC Regulators Losing Sight of Purpose

July 25th, 2012 Comments off

MHProNews has learned at a hearing on the Financial Services Oversight Council (FSOC), the “super committee” of regulators established as part of the Dodd-Frank Act to provide comprehensive monitoring of our nation’s financial system, House Financial Services Committee Chairman Spencer Bachus (R-AL) said there is little evidence the FSOC has accomplished what it was created to do because their regulators are so busy writing hundreds of new rules required by Dodd-Frank. Noting the failure of FSOC to protect customers of MF Global and Peregrine Financial Group, Rep. Bachus said, “It seems regulators are so busy trying to write rules against things like proprietary trading – which even Chairman Volcker agrees was not a cause of the financial crisis – that they are failing to fulfill their primary mission. Are they so busy writing tickets for jay walking that they’re letting the robbers and thieves run loose? Rather than pass massive new laws that require hundreds of new regulations, it’s a better use of limited resources to make sure regulators are enforcing the rules we already have.”

(Image credit: Facebook)

County May Seize MH for BackTaxes

June 8th, 2012 Comments off

The DailyTimes in Farmington, New Mexico tells MHProNews.com the owners of 2,650 of the 12,000 manufactured homes in San Juan County in northwestern New Mexico have yet to pay their county 2011 property taxes, totaling almost $400,000. Failure to pay 2010 taxes has resulted in MH owners owing $72,000 in taxes and fees. Five MH owners who owe taxes going back to 2004 will be told they have one week to pay or they will be locked out of their homes which will then be sold at auction. County Treasurer Rocky Wasson announced new policies during the recent county commission meeting which include two warnings that taxes are due. If the second warning is ignored, the county will offer one more week before the property is seized for auction. 8,000 county property owners still owe 2011 county taxes, including manufactured homes. However, the new policy only affects MH because there is a different policy that covers businesses and traditional homes.

(Image credit: Santa Fe, NM—Mfg.HomeSource)

HUD Suspends MHCC Activities

May 17th, 2012 Comments off

Following HUD’s suspension of the Manufactured Housing Consensus Committee (MHCC) Administering Organization (AO) services by the National Fire Protection Association (NFPA) because of HUD’s failure to pay the NFPA, the Manufactured Housing Association for Regulatory Reform (MHARR) sent a letter to Carol Galante, HUD Assistant Secretary-Federal Housing Commissioner. In reminding Ms. Galante of their meeting last fall in which the importance of the MHCC as part of the Manufactured Housing Improvement Act of 2000 was stressed for proper operation of the MH program, MHARR President Danny Ghorbani reiterates HUD’s disregarding the role of the MHCC as intended by Congress. He says, “…the indefinite suspension of all MHCC activities threatens to return the program to the type of closed door, unaccountable and non-transparent regulatory practices that Congress sought to end through the reforms of the 2000 law.”

(Image credit: Wikipedia Commons)