Posts Tagged ‘Federal’

21st Mortgage Corporation Manufactured Housing Loan Data, Per Federal Sources

June 25th, 2019 Comments off


The following facts is the most recent summary of information available currently from the Consumer Financial Protection Bureau (CFPB) on HMDA data for 21st Mortgage Corporation loans on HUD Code manufactured homes.


21st is part of the metro-Omaha, NE based Berkshire Hathaway owned family of brands and is based in Metro Knoxville, TN.

Unlike Clayton Homes and Vanderbilt Mortgage and Finance (VMF), as thousands of manufactured housing industry professionals know, they ‘serve’ independent retailers and communities, as opposed to Clayton Homes directly.

That they like or prefer making loans on Clayton Homes built product should be evident from the report linked below.  But there are good reasons for them to make loans on other producer’s brands, because it arguably provides them with an upper hand, causing other producers of manufactured housing to have a degree of dependence and thus leverage.



In a series of direct quotes in context, a document from 21st Mortgage signed by Tim Williams, and video recorded comments by Kevin Clayton, these all line up to demonstrate how independent retailers, communities, and producers – among others – where purportedly harmed by action that could be deemed an antitrust violation. 21st, Clayton, and their association mouthpiece, MHI, and their outside attorney have all been asked to comment on these facts and allegations.  They’ve repeatedly declined comment.


Here is the 21st Mortgage Corporation HMDA data from federal sources noted at the bottom of the graphic.




You can see by looking at our ‘almost midnight’ report from 6.24.2019 that Vanderbilt made FHA loans, but 21st originated none. That is federal confirmation of a prior news tip that we received from 21st personnel on an off-the-record basis. Those middle management type sources were not able to articulate an answer as to why 21st would stop making such loans, but why VMF would continue to offer them?

You can compare 21st and with VMF’s data, by accessing the report from the linked text-image box below.


Vanderbilt Mortgage and Finance Manufactured Home Loan Origination Data, Per Consumer Financial Protection Bureau


As with other federal data, compiling and sorting the information has a degree of lag time.  A more complete snapshot from 2015 is available below.  Note that Triad Financial, due to the way they are structured, is not reflected in the screen capture of the federal dataset below. But they are larger that several of the lenders shown, while smaller than 21st, VMF, or Wells Fargo, per sources. It is therefor interesting to note that the top 3 lenders for the year below all have direct ties to Berkshire Hathaway, which owns a sizeable stake in Wells Fargo. 



Download and open this graphic to see it full size, which is more than double the size visible now.

Both VMF and 21st qualify for the 10/10 rule established by FHA, which made Berkshire Hathaway the dominating lender in that realm.  Was that 10/10 rule threshold a coincidence?  Or was it useful to Berkshire and a sign of some darker relationship that bears federal scrutiny?


FollowThe MoneyPayMoreAttentionToWhatPeopleDothanwhatTheySaySpySea72MartyLavinYachtManufacturedHousingINdustryProMHProNews

Marty wasn’t the first to say these quotable quotes, but that he said them and has such close ties to MHI, GSEs, the ‘big boys’ and manufactured home lending should cause the thoughtful reader and inquiring mind to pause and wonder.


It is worth mentioning that Harvard’s Eric Belsky said that credit was the lifeblood of housing.  That was dramatically demonstrated by the mortgage/credit/housing crisis of 2008, but which straddled other years.



Why did Belsky miss his predicted date? Because it came before Buffett’s entry into MH? See the attorney-reviewed report linked here.

The Government Sponsored Enterprises (GSEs) of Fannie Mae and Freddie Mac have used manufactured housing’s prior credit crisis that began to become apparent with the slide in sales, shipments, and production in 1999, but accelerated into the early 2000s.



April data reflects month 8th of the downturn, with nary a whimper from MHI or the big boys. Why? 

While losses in manufactured housing loan portfolios was significant, as those who recall Greentree, Conseco, Associates and other lenders who essentially vanished from the manufactured housing scene as a result of the meltdown in MHVille that began to be evidenced in 1999.  By comparison to conventional housing losses in 2008, while significant to our industry, it was as an insider called it a “pimple on an elephant’s ass.” See that comment and more from 2017 in the report linked below.


“An Elephant Ass,” Understanding GSEs, Duty to Serve, Manufactured Home Lending


Why did lending return to conventional housing but not to manufactured homes?  Bear in mind that FHFA data in 2018 reflected that manufactured housing can appreciate.  HUD Secretary Carson has pointed to that fact in some of his 2019 talks touting the potential of manufactured homes.



Democratic lawmakers have pressed the Consumer Financial Protection Bureau (CFPB) to investigate Clayton Homes and their affiliated lenders.  Several of them are 2020 hopefuls.  That report can be accessed via the text-image box below. 


Senate Democrats – Including 2020 Presidential Contenders – Ask CFPB Protect Consumers Against Predatory Lenders — Point Finger at Clayton Homes, Berkshire Hathaway Lending


The non-partisan Manufactured Housing Association for Regulatory Reform (MHARR) is asking for Congress to investigate what they have deemed is the failed roll-out of the GSEs of Fannie Mae and Freddie Mac’s Duty to Serve or DTS. One example of their concerns is reflected in their report, linked below.



George F. Allen is increasingly seen as compensated MHI surrogate. Allen has pointed out the obvious, that MHARR is a sponsor of our website. But that’s out in the open, MHARR has banner ads here. What Allen fails to mention is that MHI used to sponsor MHProNews too. So too did Clayton Homes, and 21st Mortgage.  Our coverage of these issues began before MHARR became a sponsor, and while Berkshire brands and others with ties to MHI were still sponsors.  That’s evidence that our reports have been based upon our LLC’s own research and work, without favor.  We follow the facts, evidence, trends, common-sense, and the money trail. We give others an opportunity to respond to concerns. That’s arguably why our audience size and engagement levels on MHProNews dwarfs Allen’s and MHInsider’s combined. We are by far the #1 largest and most-read in MHVille. 

See the related reports below the byline for more.  That’s this morning’s pre-dawn edition of manufactured home “Industry News, Tips, and Views Pros Can Use,” © where “We Provide, You Decide.” ©. ## (News, fact-checks, analysis, and commentary.)

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Submit confidential or on-the-record news tips, or comments at this linked email Put the phrase “News Tips” or “Comments” in the subject line to help us spot yours in our volume of emails, thank you.

Related Reports:

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

Nicole Friedman, Ben Eisen, Wall Street Journal – Fannie, Freddie, Manufactured Homes, and MH Financing – Part 1


HUD Secretary Ben Carson, Affordable Housing, Obscuring the Truth, Innovations in Housing, and Manufactured Homes






Fight Club, Tyler Durden, Zero Hedge, JP Morgan, and the Coming Crash Cities Near You

October 6th, 2017 Comments off

FightClubTylerDurdenComingCrashCitiesZeroHedge2othFoxUproxxPostedDailyBusinessNewsMHProNewsPuerto Rico (PR) is not alone in its search for housing and financial stability. Millions only follow a story after a disaster, like Maria.  The U.S. territory of PR is joined by several mainland American cities – and some states? – as part of a financial maelstrom that some noteworthy analysts believe will soon impact a jurisdiction – and millions of people – near you.

To appreciate some of the dark analysis – and similar humor – found on Zero Hedge about the coming crash of several American cities, it is useful to get some background.

Zero Hedge and ‘Tyler Durden’

Zero Hedge is an English-language financial blog that aggregates news and presents editorial opinions from original and outside sources,” says Wikipedia. “The news portion of the site is written by a group of editors who collectively write under the pseudonym “TylerDurden” (a character from the novel and film Fight Club).


Rick Perry spotted waiting to fly commercial (good news for tax payers) at an airport, reading the Drudge Report.

For those some readers in the West Wing – or like former Texas Governor, GOP presidential hopeful, and now Secretary of the Department of the Treasury, Rick Perry – who read the Drudge Report, Zero Hedge is a periodic selection by the eclectic Drudge team of content worth considering.

Wikipedia, regarding the character from the movie, says – “The Narrator, also known as Tyler Durden, is a fictional character appearing as both the central protagonist and antagonist of the 1996 Chuck Palahniuk novel Fight Club, its 1999 film adaptation of the same name, and the comic book Fight Club 2.”

Uproxx provides some thoughtful quotes from the 20th Century Fox movie Fight Club.





Zero Hedge logo and tag line.


Against that backdrop, Zero Hedge analyzed a recent report by J.P. Morgan about the looming financial crisis coming an American city, likely one or more of which is not far from you.

We harp on the massive, unsustainable, yet largely unnoticed, debt burdens of American cities, counties and states fairly regularly because, well, it’s a frightening issue if you spend just a little time to understand the math and ultimate consequences,” writes Zero Hedge’s editors under the pen name, Tyler Durden.

Luckily, for those looking to escape the trauma of being taxed into oblivion by their failing cities/counties/states, JP Morgan has provided a comprehensive guide on which municipalities haven’t the slightest hope of surviving their multi-decade debt binge and lavish public pension awards,” says the Zero Hedge editors.


If you live in any of the ‘red’ cities below, it just might be time to start looking for another home…” ‘Tyler Durden’ snarks.


Zero Hedge’s editors explain the context of the JP Morgan sobering research.

JP Morgan ranked every major city in the United States based on what percentage of their annual budgets are required just to fund interest payments on debt, pension contributions and other post retirement benefits,” writes ‘Tyler Durden.’


The results are staggering,” Durden says. “To our great ‘shock’, Chicago residents win the award of “most screwed” with over 60% of their tax dollars going to fund debt and pension payments.  Meanwhile, there are a dozen municipalities where over 50% of their annual budgets are used just to fund the maintenance cost of past expenditures.”


Zero Hedge’s editors explain that, “As managers of $70 billion in US municipal bonds across our asset management business (Q2 2017), we’re very focused on credit risk of US municipalities.”

These multi-billion-dollar fund managers are hedging their bets, pardon the pun, against cities and towns near you.  So, in some form or fashion – either risk or opportunity (or both) – this wave of debt will impact numerous bottom lines in cities or town in the  near you.

Manufactured Housing Industry pros need to be aware, and prepare.

PuertoRicoFloridaSEUnitedStatesGoogleMapsDailyBusinessNewsMHProNews (2)

One way or another, factory builders will be part of the solution in PR. Will it be the Chinese? Americans? Who? Will they do it well, or properly, or will those who go pull another Clinton/Clayton Haiti? Click the above for more.

Puerto Rico, yes, you have your own tragic conditions. As politicos of both major parties are flocking to the island now spotlighted by Irma’s devastation, another crisis is getting less attention.


That debt isn’t just federal.  Its lurking in a city, town, and state near you.


Given the data, do you see why MHProNews has editorially supported a pro-growth economic policy, regulatory reform, tax reform, cutting of budget waste? And, of course – manufactured homes – as a vital part of the solution hiding in plain sight. 

With 20 trillion and counting in D.C., isn’t it time to consider how that will impact the U.S., and global economy?  And thus, your business interests, in local markets? 

Government debt.  It’s a crisis. It creates risks.  But applying Sam Zell’s thought process, do you see how it also can be opportunity knocking for those in the affordable housing industry?


Click the above for a video to learn more. Image collage by and

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

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

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FHFA Makes Major Move, Significant Impact Expected on MH Loans

December 14th, 2016 Comments off

Credit: Neon Tommy.

The Federal Housing Finance Agency (FHFA) finalized a rule on December 13th that creates a “duty to serve” for Fannie Mae and Freddie Mac.

The action is aimed at having government-sponsored enterprises (GSEs) enter the market for manufactured home loans by creating a pilot program under which they receive credit for purchasing manufactured homes secured by real estate.

Some community operators were pleased to see the credit included, as it provides the GSEs data for their research and development efforts on chattel lending for manufactured housing loans that are not titled as real estate loans. 70% or more of manufactured homes are financed with so-called “chattel loans” – also known as “home only” or “personal property” loans.


Doug Ryan, CFED.

That was one of our suggestions. It gives them an incentive to start and get out of the gate right away,” said Doug Ryan, who heads up the affordable housing side of the Center for Economic Development (CFED).

According to National Mortgage News, several manufactured housing advocates welcomed the move, which they hope will increase the availability of personal property loans made for the purchase or refinance of a manufactured home that is not permanently affixed to the real estate.

DickErnst-creditMHC-MD-com-postedDailyBusinessNewsMHProNews-Anything the agencies can do toward the purchase of manufactured housing loans, including chattel loans, will do a great deal to help solve that crisis,” said Richard  “Dick” Ernst, chairman of the financial services division of the Manufactured Housing Institute (MHI).

We are optimistic it can do lots of good for manufactured home owners,” said Ryan.

Lesli Gooch. Credit: MHI.

Requiring the GSEs to purchase chattel loans as part of their statutory Duty to Serve requirement is the single most important step the FHFA can take to improve access to mortgage credit for manufactured housing consumers,” said MHI executive director Lesli Gooch.

Not everyone in manufactured housing believes this first step is enough.


M. Mark Weiss, CEO of MHARR, credit -MHProNews.

While a mandatory pilot program including chattel loans – combined with a specific commitment to transition to a full “going basis” securitization model within a short and finite timeframe — would potentially be a step forward, a chattel “pilot program” in itself would not fulfill the mandate of DTS,M. Mark Weiss, JD, president and CEO of the Manufactured Housing Association for Regulatory Reform (MHARR) told MHProNews.

While some industry pros see hope, the National Association of Home Builders (NAHB) and Independent Community Bankers of America (ICBA) see excessive risk.

Chattel loans carry higher risk. We don’t think it is a good idea for the GSEs to get into chattel loans,” said Ron Haynie, a senior vice president at ICBA.


Sources tell MHProNews that many of those who are making decisions about manufactured home lending have little or no understanding of what the product is like today. Photo credit, Sunshine Homes and


Ron Haynie. Credit: LinkedIn.

Their stance stems from activity in the late 1990s and early 2000s, in which Fannie May and Freddie Mac suffered losses by purchasing manufactured home loans.

While those losses pushed the GSEs to leave the manufactured housing market, they were actually hundreds of times lower than the losses incurred during the 2008-mortage/housing crisis, which involved site built homes.  So a proper understanding of the homes, loan performance and comfort level with the product are all part of the landscape from the GSEs perspective.

The ICBA says that the “GSE regulator should “direct the Enterprises to work with mortgage insurers to development mortgage insurance products for manufactured housing loans.

paul bradley roc usa founder cedit

Paul Bradley. Credit: Fosters.

I am surprised that the Community Bankers’ Association would come out against GSE chattel product – from the many community bankers I’ve talked to over the years, the local bankers want a secondary market for chattel,” ROC President Paul Bradley told MHProNews.

One of the concerns that lenders often express about manufactured home loans in Land Lease Communities is that homes there lose value,” Bradley said. “But that is not a given.  I can point to examples in Land Lease Communities where homes are appreciating.”

How Did We Get Here?

The story behind GSEs and chattel loans is extensive.


Titus Dare. Credit: MHProNews.

Titus Dare, who has been involved in establishing a program about a decade ago that created performing manufactured home loans in a leasehold, noted that there are several dynamics at play that the GSEs want to make sure are addressed.

For example, what happens if a community owner wants to sell their property to Wal-Mart?” This, says Dare, is part of the reason why it is difficult to get mortgage protection insurance on a chattel loan.

Dare has previously shared in-depth commentary on this issue with MHProNews, in A Deeper Look at Why the GSEs Say No to Securitizing Chattel Loans and his three point plan for industry recovery.

Paul Bradley sums up how the perceived challenges around chattel products can actually be resolved by the GSEs.

In fact, the two unique elements of this sector – relatively more expensive chattel products and land lease – can be resolved by the GSEs; they could make this market no different than the conventional residential markets where supply, demand, location and upkeep influence house price performance,” said Bradley.

The GSEs, with the right lease terms to secure their and homeowners’ interests, could help fix the problem that causes some manufactured homes to lose value.

The Daily Business News anticipates an in-depth response to the rule from MHARR and others in the days ahead, and will continue to follow developments around this story closely. ##

Bradley’s full commentary is linked here.

The Fact Sheet on the Duty to Serve Underserved Markets program is linked here.

The Final Rule sent to Federal Register is linked here.

(Image credits are as shown above.)


RC Williams, for Daily Business News, MHProNews.

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