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What Congressional Representatives, Senators, and Industry Professionals Should Be Asking About Duty to Serve Manufactured Housing

June 18th, 2019 Comments off

 

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There are several ways to understand people and organizations. One method, is to listen to what they say.

 

Another is to see how what they claim compares to what they actually do. 

Yet another is the investigator’s method, which is “follow the money.”

A classic variation on the above is the question: Cui Bono? Who benefits?

Toadies and lemmings will simply follow mindlessly, even if they are following a ‘leader’ over a cliff.

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MHInsider, George Allen, others are arguably the current examples of toadies to the industry’s powers that be.

The Manufactured Housing Association for Regulatory Reform (MHARR) has been pushing, prodding, and calling for action, not words by the Government Sponsored Enterprises (GSEs) of Fannie Mae and Freddie Mac with respect to their congressionally mandated Duty to Serve (DTS) manufactured housing.

By contrast, the Manufactured Housing Institute (MHI) has taken money from the GSEs to sponsor events that have failed to deliver DTS.

Who benefits from that, other than the largest corporate players that are trying to consolidate manufactured housing into ever fewer hands?

With that introduction, let’s dive into MHARR’s release, which follows below. That will be followed by some additional comments, links, insights, and information. 

MHARRlogoMHARRNewsHeaderMHProNews

MHARR REITERATES CALL FOR DTS INVESTIGATION

 

Washington, D.C., June 18, 2019 – The Manufactured Housing Association for Regulatory Reform (MHARR), in a June 13, 2019 communication to Fannie Mae Vice President Jonathan Lawless (copy attached), has reiterated its call for a congressional investigation into the failure of both Fannie Mae and Freddie Mac to implement the statutory Duty to Serve Underserved Markets (DTS) in relation to manufactured home personal property (or “chattel) loans.  Those loans, which provide consumers with the most affordable access to the nation’s most affordable non-subsidized homes, comprise nearly 80% of the manufactured consumer lending market.  Nearly 11 years after the enactment of DTS as part of the Housing and Economic Recovery Act of 2008 (HERA), however, neither Fannie Mae nor Freddie Mac have purchased any manufactured housing personal property loans pursuant to that mandate – which expressly includes such personal property loans – let alone provided the type of market significant securitization and secondary market support that Congress envisioned.  Indeed, even an extremely limited and highly restricted “pilot program” for such loans has yet to materialize after nearly two years of empty promises, and is referred to by Fannie Mae as only a “potential” pilot program. 

Instead of providing such crucial support for the largest single segment of the manufactured housing consumer lending market and mainstream, inherently affordable manufactured homes, as MHARR’s communication notes, both Fannie and Freddie have instead prioritized pilot programs for much higher-cost manufactured homes, as well as a supposed “new class” of manufactured homes with retail purchase prices as high as $220,000.00 – as contrasted with an average purchase of $71,900.00 for all types of existing, mainstream, HUD Code manufactured homes. Consequently, instead of expanding access to the industry’s most affordable mainstream homes, as DTS was designed to do, both Fannie and Freddie continue to discriminate against mainstream manufactured housing and mainstream manufactured housing purchasers, effectively forcing them into higher-interest loans offered by the finance subsidiaries of the industry’s largest corporate conglomerates, while stifling the recovery and market growth of the manufactured housing industry during a prolonged affordable housing crisis.  Indeed, this type of sustained institutional resistance to the full and proper implementation of DTS and the resulting ongoing discrimination against lower and moderate-income consumers of manufactured housing is, in substantial part, an outgrowth of the continuing failure of the industry’s post-production sector – dominated by the industry’s largest corporate conglomerates – to demand full compliance with DTS for manufactured housing.

Based, therefore, on the lack of any significant progress toward the market-significant implementation of DTS with respect to the vast bulk of the manufactured housing consumer financing market and apparent diversion of DTS activity into new, higher-cost types of hybrid manufactured homes, MHARR has called for a congressional investigation of Fannie Mae, Freddie Mac and their federal regulator, the Federal Housing Finance Agency (FHFA), with respect to unconscionable and unnecessary delays in the implementation of DTS for mainstream, HUD Code manufactured housing.

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.

 

Manufactured Housing Association for Regulatory Reform (MHARR)

1331 Pennsylvania Ave N.W., Suite 512

Washington D.C. 20004

Phone: 202/783-4087

Fax: 202/783-4075

Email: MHARR@MHARRPUBLICATIONS.COM

— 30 —

 

Think about what these MHI past and present members have said, and ask yourself, who side is MHI on?

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What Haney’s statement reflects is the lack of credibility and effectiveness of MHI in their claims.

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Marty Lavin advises, “Follow the Money” and “Pay More Attention to What People Do Than What They Say.” The GSEs are praising manufactured home quality, but then created a special class of manufactured homes, with key MHI member input, that is aimed at funneling that lending, per informed sources.

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FollowThe MoneyPayMoreAttentionToWhatPeopleDothanwhatTheySaySpySea72MartyLavinYachtManufacturedHousingINdustryProMHProNews

Then, ask yourself, why hasn’t MHI done what MHARR is doing?

That’s tonight’s final installment of manufactured housing “Industry News, Tips, and Views Pros Can Use,” © here “We Provide, You Decide.” © ## (News, commentary, and analysis.) ##

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Photo of Commodore Homes model, MHARR logo, are provided under fair use guidelines. See article and letter to Secretary Carson, linked here. https://manufacturedhousingassociationregulatoryreform.org/mharr-calls-on-hud-secretary-to-end-discriminatory-and-exclusionary-zoning-of-hud-regulated-manufactured-homes/

 

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https://manufacturedhousingassociationregulatoryreform.org/time-to-investigate-fannie-and-freddies-mishandling-of-dts/

 

 

 

 

 

 

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

September 27th, 2018 Comments off


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Mel Watt, who runs the Federal Housing Finance Agency, of sexual” misconduct. “Watt’s accuser, Simone Grimes, requested to testify at the hearing” today, per Roll Call.

Manufactured housing is in the background of this hearing, and MHProNews plans a follow up on this topic.

There are charges of corruption, waste, and fraud involving the GSEs – Fannie and Freddie – and at the FHFA.

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

May 30th, 2018 Comments off

The Manufactured Housing Association for Regulatory Reform (MHARR) in written comments filed on May 30, 2018, has called on the Federal Housing Finance Agency (FHFA) — the federal regulator of mortgage giants Fannie Mae and Freddie Mac — to significantly revise and amend the final rule that it issued on December 29, 2016 to implement the Duty to Serve Underserved Markets (DTS) mandate incorporated by Congress in the Housing and Economic Recovery Act of 2008 (HERA) and related FHFA “guidance” for evaluating the Government Sponsored Enterprises’ supposed DTS compliance plans that became effective on January 1, 2018,” the Washington, D.C. based trade group told the Daily Business News via a news release.

 

MHARR’s comments were submitted to FHFA pursuant to a “Notice of Regulatory Review” published in the Federal Register on April 5, 2018, seeking comments on FHFA regulations that “should be modified, streamlined, expanded, or repealed to make [FHFA’s] regulatory program more effective or less burdensome in achieving its objectives” in accordance with a 2012 Regulatory Review Plan developed under Executive Order 13579 (“Regulation and Independent Regulatory Agencies,” issued July 11, 2011),” with emphasis added, per the MHARR release.

Based on this request – and in order to bring both Fannie Mae and Freddie Mac into full compliance with DTS — MHARR’s comments call for substantial amendments to: (1) FHFA’s final DTS implementation rule; (2) FHFA’s DTS plan “Evaluation Guidance;” and (3) Fannie Mae and Freddie Mac’s DTS implementation plans themselves, given the patent failure and inability of these regulatory actions to effectively implement the DTS mandate in a market-significant and timely manner,” per MHARR.

In part, MHARR’s comments stress that a supposed “lack of information” regarding the performance of manufactured home chattel loans – which comprise upwards of 80% of the HUD Code market) – more than a decade after the enactment of DTS is both disingenuous and evidence of the type of continuing bias against manufactured housing and manufactured homebuyers at Fannie Mae and Freddie Mac that DTS was meant to remedy in the first place,” according to their statement.

There is no similar known effort being made by the Manufactured Housing Institute (MHI), which sources say has postured a push for DTS, but whose prior chairman, Tim Williams, has said in published comments was a “waste of time.”

MHARR has previously noted that every day that DTS isn’t fully implemented is a “gift” to the Berkshire Hathaway lenders.

Industry veteran and MHI award-winner, Marty Lavin, JD, has recently told MHProNews that MHI works forthe big boys,” and only works for smaller companies when that aligns with the interests of larger firms.

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Further,” said MHARR, “the comments note that the supposed chattel loan “pilot programs” included in the Enterprises’ DTS “implementation” plans, are little more than token efforts that would serve slightly more than 1% of the manufactured housing market with no assurance whatsoever of expanded secondary market or securitization support for manufactured housing chattel loans at any time in the foreseeable future. As such, the supposed DTS compliance plans – and the final DTS rule and Evaluation Guidance that they are based on – are wholly inadequate to “effectively” implement DTS and must be revised in accordance with FHFA’s 2012 Regulatory Review process.”

MHARRMarkWeissIfCongressHadMeanttheDutytoServeToBeOptionItWouldNotHaveCalledItADutyDefintionofDutyIsMandatoryResponsibilityDailyBusinessNewsMHProNews

In Washington, D.C. MHARR President and CEO Mark Weiss said: “The continuing failure of FHFA, Fannie Mae and Freddie Mac – more than a decade after the enactment of DTS — to take concrete and market-significant steps to increase the availability of chattel loans for lower and moderate-income manufactured homebuyers is inexcusable and in defiance of the law and the will of Congress.

Weiss elaborated.

 Using the alleged lack of chattel loan “data” as a risible excuse, FHFA, Fannie Mae and Freddie Mac are standing in the way of greater competition in the manufactured housing finance market and lower,” he said, “more competitive interest rates for consumers that would allow many more Americans to purchase a truly affordable home of their own. Conversely, the failure to implement DTS as written and intended by Congress, will have the negative consequence of driving more consumers into the arms of the current industry-dominant lenders and their higher-cost loans. DTS is far too important to allow it to be emasculated by Fannie Mae and Freddie Mac and their enablers within and outside the industry.”

 

About MHARR

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. ## (News, analysis, and expert commentary.)

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GSE Asked: Will Manufactured Housing Overtake Conventional Homebuilding?

May 26th, 2018 Comments off

GSEAskFreddieMacWillManufacturedHousingOvertakeConventionalHomebuilding

HISTORICALLY PLAGUED BY THE image of a tin box on wheels, manufactured housing finally is winning some of the mainstream acceptability that this housing segment has long sought. Today, manufactured housing—also mistakenly known as mobile homes, a colloquial but technically inaccurate name sometimes used to describe the housing product broader homeowning audience.”

–        Donald S. Bradley,

senior economist in Freddie Mac’s housing economics department.

 

It was a dramatically different time, and to be blunt, short term thinking back then in manufactured housing doubtlessly cost the industry tens of billions annually in new factory-built home sales.

The year was 1998, and the bust from the easy-credit go-go days of liar loans and questionable documentation was getting ready to bust. So, the researchers of that era did not yet know what we know today.

ManufacturedHousingIndustry1997FutureManufacturedHOusingHarvardUniversityJointCenterHousingStudies1997The chart below that reflects the nose dive in shipments from 1998 to 2009 are the only reminder that prudent, honest, long-term strategists need to realize that credit must be sustainable, or that promising future can vaporize like rainwater in the desert once the clouds pass.

MobileHomeShipmentsManufacturedHomeShipmentChartMHIAShipmentsMHIndustryChampionSkylineHUDCodeDailyBusinessNewsMHProNews

That said, the praise from third-party researchers then was plentiful. And Fannie Mae seriously asked the following question in a research document:

Will Manufactured Housing Become Housing of First Choice?

Before you think that the report and headline were a one-off, recall that Eric Belsky made the statements in the graphic shown below. He did so a few years later, knowing about the repossessions, foreclosures and the constricting of lending that were occurring by that time.

–        Harvard,

–        a GSE,

–        the Ford Foundation,

–        and others were seeing the future of American Housing as coming out of a HUD Code manufactured home factory.

EricBelksyManufacturedHousingIndustryManufacuredHomeManufacturedHousingInstituteResearchDataAffordbleHousingMHProNewsDailyBuisnessNews575

The Urban Institute, a HUD PD&R, and other reports reflect that manufactured homes (MH) can appreciate side-by-side with conventional housing. The law of supply and demand applies to MH and conventional housing too. When the GSEs, FHA, VA, USDA, and others realize that fixing appraisals through education, and leveling the playing field in lending will boost the value of the majority of manufactured homes, that in turn will fuel the financing for the millions of new manufactured homes needed in America today.

The proverbial table could be set for that type of future again, where manufactured and factory-built housing might be poised to overtake convention building, because the demand for housing is so great.

LawrenceYunNARShort8.3MillionHousingUnitsRisingRentsHousingPricesCuredOnlyByMoreBuilding

And the gap between what site builders can do and what is needed is so wide that among the tech giants are those who believe that only factory building will accomplish the closing of the gap.

This article will only reference briefly as related reports at the end what the Urban Institute failed to note in an otherwise largely useful report that published on manufactured housing in January 2018.

But some of the takeaways found in these reports from the late 90s and early 2000s are still valid today. and ought to be required reading for industry professionals, investors, public officials, policy and housing advocates.  The research we need today is research that’s already been done, time and again.

The excuses – pardon the bluntness – that the GSEs give today find their answer in some of their own research documents from the past, along side that of other third parties that praise the manufactured housing industry’s product.

What about today?

In fact, a recent report by the Manufactured Housing Association for Regulatory Reform (MHARR) makes it clear the quality of manufactured housing is – as HUD Secretary Ben Carson said, “Amazing!” is proven by federal data that proves that only a tiny fraction of a single percent of the homes produced ever go to dispute resolution.  Keep in mind that the feds under Pam Danner’s watch at HUD started essentially advertising for complaints, because there were so few of them.

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For newcomers to the website not familiar with modern manufactured homes, learn more by clicking the image above or the link here.

The extended quotes that follow are from a Ford Foundation report.  The entire document will be linked as a download at the end.

The opening quotes above are from a Freddie Mac report, which will also be linked at the end as a download.

The closing thought for this is simple.  For at least 2 decades, the manufactured housing industry has allowed itself to be defined by others.  The industry has built a fine product for decades. The foundation for having the industry defining itself has been set.

The industry has the laws that it needs, now what is needed is to see those laws be fully enforced.

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

Back then, or more recently, there are media and researchers who discover that the solution to the affordable housing crisis is hiding in plain sight.

Bloomberg, HousingWire, Realtor and Fox all suggest Manufactured Homes as Important Solution for Affordable Housing in America

It is up to the individual businesses, or through a collective effort, to redefine in the public mind the myths vs. the realities. Please don’t take this as hubris, but we helped set the foundation for getting to the heart of what bothers consumers, media, researchers, and others when we launched – thanks to the support of others – MHLivingNews.com.

Surprised by the Truth, While Shopping for a New Home

MobileHomeShipmentsManufacturedHomeShipmentChartMHIAShipmentsMHIndustryChampionSkylineHUDCodeDailyBusinessNewsMHProNews

When conventional housing starts dwarf manufactured housing, the industry must scratch its head, and candidly ask why? When existing home resales can’t – per the NAR’s Lawrence Yun – ever close the needs gap, manufactured housing pros and investors with guts and vision must step up and say, “We can do this.”

What is self-evident from the new home shipment levels is that the industry’s ‘leadership’ failed terribly at protecting, educating and promoting the true value of our product.

IfPrettyPicturesVideosAloneWereEnoughMHIndustryWillOnlyAchieveItsGoalsByResovingItsCoreIssuesLATonyKovachMHProNews1

We must educate ourselves, and then we must educate others. James McGee and Chet Murphree said it, ‘its all about education.’ more about the above, linked here. John Bostick said it, “Easy doesn’t pay well.”  But with discipline and grit, the difficult becomes easy, and that proven system pays very well.

  • Evidenced-based education must be first to each other as professionals.
  • Then, education must then go out to our home owners and the rest of the general public.
  • We must not fear the truth.  Our product doesn’t have to be perfect, it just has to be a prudent option.  Site built housing is demonstrably not perfect, ours doesn’t have to be either.
  • There has to be some bold and courageous enough to stand up in their own respective field and do what a group of communities are doing, forge a new association that will address the needs that decades of history reveal hasn’t been solved by current leadership.

The proof of our quality and the reality of what holds us back are what MHProNews and MHLivingNews, with the support of others, has been documenting for years.  Those focus group videos are evidence of what happy manufactured home owners look like.

Affordable Housing Focus Group – Comparing Housing Options – Conventional Houses, Condo, Rentals, and Manufactured Homes – Up for Growth, National Association of Realtor, Studies

The solution for the affordable housing crisis has been hiding in plain sight.

Since we’ve said those words, others in media have picked it up, time and again.  That too is part of the proof of what is needed. Honest engagement with the media, researchers, advocates, home-shoppers, and public officials.

“The Solution to the Affordable Housing Crisis is Hiding in Plain Sight”

These reports from third parties from the glory days not so long past point the way foreword, for those willing to make common sense changes that bring new, more profitable and sustainable results.

TheFirstStepInSolvingAProblemIsToRecognizethatItDoesExistZigZiglarDailyBusinessNewsMHProNews

That said, let’s dive into the powerful opening to the Ford Foundation, in the extended quotes below.

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ABSTRACT OF FINDINGS

“An increasing share of lower-income families, the same population targeted by community-development organizations, are opting to live in housing that was built off-site in a factory to meet the performance standards of the national HUD manufactured-housing code. However, most community-development practitioners are just beginning to come to terms with the implications of manufactured housing for their work.

ManufacturingTransportReportToFordFoundationManufacturedHousingIndustryDailyBusinessNewsMHProNewsThis paper explores advantages and disadvantages of manufactured housing for those entities whose mission is community development and asset building. Several challenges are presented for practitioners: First, working to educate consumers while also creating financing processes that ensure manufacturedhome buyers obtain credit on the best terms for which they can qualify. Second, using the increased scrutiny under the Manufactured Housing Improvement Act of 2000 to advocate for states to enforce more rigorous installation standards and increased accountability. Third, working to overcome land-use controls which prevent manufactured homes from being placed in communities in need of affordable housing, as well as areas with more potential for appreciation. Fourth, working with designers and planners to develop innovative designs and housing developments, while maintaining manufactured housing’s affordability advantages. Finally, equal effort must be devoted to address the difficult conditions of many lower-income people—owners and renters alike—living in older, and often deteriorating, mobile homes. While a few of these families and individuals could be relocated to new and better quality homes with the help of subsidies, resource limitations suggest the need to create cost-effective methods to eliminate health and safety problems by upgrading or rehabilitating this extremely affordable element of the nation’s housing inventory.

As a companion to this paper, an exhaustive literature review has been compiled.

INTRODUCTION

There are over eight million manufactured, HUDcode homes in the United States today, representing two-thirds of affordable units added to the stock in recent years and a growing portion of all new housing. In fact, buyers of manufactured homes contributed to a substantial share of the growth in low-income home ownership evidenced in the 1990s. These statistics send a message to all who seek to promote home ownership for low-income families, as well as promote safe, affordable housing opportunities in disenfranchised communities. An increasing share of the people whom community-development organizations serve are opting to live in housing that was built offsite in a factory to meet the performance standards of the national HUD manufactured-housing code. Many community-development practitioners are just beginning to come to terms with the implications of this for their work.

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This report and the “Developing Community Assets with Manufactured Housing: Barriers and Opportunities” symposium held in Atlanta in February 2002 by the Neighborhood Reinvestment Corporation are part of an effort to better understand the implications and opportunities of manufactured housing for the community-development field. The goal of this project is to increase education and awareness about manufactured housing among practitioners. Similar to other markets, community-based organizations have the potential to help ensure that consumers make informed choices regarding manufactured housing, and to use programmatic and policy tools to make a positive impact on communities.

To supplement the quantitative findings of research conducted by staff of the Joint Center for Housing Studies of Harvard University, anecdotal information was collected from the national NeighborWorks® network of nonprofit community-development organizations, and model program profiles were developed to provide a more complete picture of the opportunities and challenges of manufactured housing. In addition, focus groups with community-development practitioners, lenders, manufactured-housing retailers, homebuyer-education specialists and actual clients and consumers were convened to assess perceptions, knowledge and experience with manufactured housing. Guiding this research were questions related to the community-development field, namely, what—if anything—should community-development entities be doing about manufactured housing? How can this field begin to discern what improvements in public policy are needed and what programs might be successful?

This report provides a unique overview of manufactured housing, including a thorough analysis of historic trends, household demographics and the characteristics of manufactured stock, as well case studies that highlight innovative programs and developments. As a companion to this report, an exhaustive review of existing literature has also been summarized (beginning on page 49).

  1. MANUFACTURED HOUSING CONTINUES TO EVOLVE

What is Manufactured Housing?

Manufactured housing began as an offshoot of the recreational-vehicle industry in the 1930s, providing shelter for households with mobile lifestyles as well as temporary housing needs. Following World War II, housing shortages induced many households to turn to mobile homes for permanent shelter. Recognizing an opportunity, during the 1950s the industry began designing and constructing units intended to be permanent shelters. This development engendered some quality improvements, but industrywide standards remained uneven.

Within a few decades, concerns over the quality, durability, health and safety of manufactured homes led to federal action. In 1974 Congress passed the Federal Manufactured Housing Construction and Safety Standards Act, which led to the creation of a national manufactured-housing code (the “HUD code”). Unlike site-built homes, modular housing and other types of factory-produced homes, which are built to a variety of state and local building codes, HUD-code manufactured homes are built to a single, national quality and safety standard. This standard is generally based on the performance of the design and materials, rather than prescribing a specific material type or dimension must be used. Therefore, HUD-code units may use engineered lumber or alternative materials not commonly permitted under local building codes.

Homes built to the HUD code are still built on a permanent chassis like mobile homes built prior to 1976, but HUD-code units are of a higher quality, safer, and more durable than earlier models. Importantly, the HUD code pre-empts state and local building regulations, allowing manufacturers to use standardized building materials and components and avoiding the delays associated with local building inspection procedures.

Because of these streamlined codes, reduced delays and other efficiencies, one of manufactured housing’s most distinctive features is its affordability. These cost advantages do not stem from inherently inferior quality standards in the HUD code as compared to site-built homes. Detailed studies by the University of Michigan and others suggest that quality differences of the local site-built codes compared to the HUD code is minimal (Warner and Johnson 1993, Gordon and Rose 1998). In fact, manufactured housing’s affordability stems largely from cost savings from production processes.

Five factors primarily drive these efficiencies:

  1. economies of scale in high-volume materials purchase,
  2. ability to better coordinate production using assembly-line techniques,
  3. a controlled environment devoid of weather or other delays,
  4. standardized design and materials, and
  5. reduced costs (primarily time) of securing approval from local code officials.

Overall these advantages can generate significant cost savings, as indicated by a recent HUD study showing that building a 2,000-square-foot manufactured unit costs just 61 percent as much as a comparable sitebuilt home (HUD 1998)…”

— end of extended quotes —

UnbelievableHowMuchYouDontKnowAboutGameYouvePlayingAllYourLifeMickeyMantleBaseballManufacturedHousingMHProNews

Freddie Mac Report on Manufactured Housing Poised to Overtake Conventional Housing, download linked here.

Report to the Ford Foundation, download linked here.

DontGetCookedInASquatZigZiglarManufacturedHousingIndustryCommentaryDont-LetOthersSelfLimitYouByActionInactionThinkingMHPro

Let’s not let self-limiting thinking rob us, and the nation, of what could be a much brighter, richer future for all. The report linked below demonstrates how our industry could help grow the economy by some two trillion dollars annually.

YIMBY vs. NIMBY, Obama Admin Concept Could Unlock $1.95 Trillion Annually, HUD & MH Impact

Make no mistake.  The headline question is why Warren Buffett and other billionaires and multi-billion dollar operations are in this industry.

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

(Third party images, content are provided under fair use guidelines.)

Related Reports:

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

HUD’s New Man, Officials Statements, with Insider Info Beyond the Media Releases

Greener, Stylish Manufactured Homes – Hidden Facts in the Washington Post Manufactured Housing Narrative

MHI Lender Shakes Up DTS and MLO Rule Discussions

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

‘Tip of Iceberg’ – Rick Rand; Marty Lavin, Communities have ‘No Confidence’ in Manufactured Housing Institute, New National Trade Group Announced

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3) Marketing, Web, Video, Consulting, Recruiting and Training Resources

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L. A. “Tony” Kovach, photo by Mark Simon, shows Kovach engaging with SAAs in NY.

By L. A. Tony’ Kovach, publisher of MHProNews.com.
Tony is the award-winning managing member of LifeStyle Factory Homes, LLC, the parent company to MHProNews, and MHLivingNews.com.

 

 

Senator Tim Scott, Rep. Erik Paulsen – Overlooked Part of Tax Reform, Plus New Credit Plan for ALL Housing, Including Manufactured Homes

May 18th, 2018 Comments off

SenatorTimScottTaxReformRepErikPaulsenOpportunityActCreditReformManufacturedHousingIndustryDailyBusinessNwsMHProNews

In a series of video media releases to the Daily Business News, Senator Tim Scott (R-SC) touts recent accomplishments, explains how he hopes to narrow the gap for minorities, and boost all Americans’ earnings.

 

In one of these video releases, Senator Scott also spotlights an effort to get more credit – especially for housing purchases – which includes manufactured homes.

Senator Scott’s plan was amplified by Representative Erik Paulsen (R-MN).

Congressman Paulsen’s recent Op-Ed to the Washington Examiner said, “In January 2017, prior to tax reform and regulatory reforms, the Congressional Budget Office projected only 1.9 percent growth for 2018. CBO now projects 3.3 percent growth for 2018, the highest annual growth rate since 2005.”

The Minnesota Congressman explained that “While all Americans will benefit from this growth, some still need even more help. In the average state, 15 percent of the population lives in a distressed community.”

USSenatorTimScott-R-SC-InvestinginOpportunitiesActPartTaxReformDailyBusinessNewsMHProNwes600

Paulsen explained that, “As a component of the Tax Cuts and Jobs Act, Opportunity Zones are intended to incentivize long-term private investment into low-income areas, based on the Census. This approach allows state governors, and not Washington central planners, to select 25 percent of the state’s low-income census tracts as Opportunity Zones. If the state has fewer than 100 low-income census tracts, governors can designate 25 of them.”

ErikPaulsenUSRepMN-R-WikiManufacturedHousingIndustryDailyBusinessNewsMHProNews

Juxtapose those points with the Senator Scott videos posted on this report, and MHProNews business professionals and investors will realize why the best may yet be to come from the Tax Cuts and Jobs Act.

There has already been a new production center announced since the tax plan was passed into law (see the report, linked below).

According to the CFPB’s white paper, South Carolina has the highest percentage of manufactured homes per capita.  About one in five in that state live in a pre-HUD Code mobile home, or a post HUD Code manufactured home.

Senator Scott and the Trump Administration worked closely to make the incentives for investment a reality, as Daily Business News readers may recall during the presidential signing ceremony.


Credit Plan Changes, Aimed at Boosting Minority Wages, Enhanced Opportunities for All

CNBC contributor Jennifer Streaks points out in a new column that “Black families have 10 times less wealth than whites and the gap is widening—but there’s hope.”

Streaks said, “Black families now have 10 times less wealth than whites.”

Readers may recall last year that during a speaking tour by HUD Secretary Ben Carson, that he emphasized that renters have an average net worth of $5,000, while the average home owner has an average net worth of $200,000.

Citing research that points to credit access inequalities that harm minorities, Streaks article said that “There needs to be an alternative scoring model to judge credit-worthiness,” according to Senator Scott. “That’s why he has introduced the Credit Score Competition Act, which would create an alternative model for credit-worthiness that would include consistent payments for rent, utilities and cell phones.”

Executives with the Government Sponsored Enterprises (GSEs) have said they welcome this initiative.

MHProNews readers are reminded of the research by Florida Atlantic University (FAU) professor, Ken Johnson, who told MHLivingNews how purchasing a manufactured home can be a favorable vehicle for increasing personal wealth.

Researchers Shake Up American Dream? Rent vs. Buy, Ken Johnson, Florida Atlantic University, Exclusive to ManufacturedHomeLivingNews

That’s echoed by research by Prosperity Now.  It is yet more evidence that manufactured housing and affordable home ownership are bi-partisan in nature, not a left-right issue.

MHProNews will provide an exclusive on a related efforted by the White House, which may accelerate the Scott plan through executive action.

Notice: For those not yet on the MHProNews emailed updates, click the link below to join in second the thousands of professionals who will get that upcoming report, along with all other timely headline news from the industry’s leading trade media news source.  See the sign up, after related report links, further below. ## (News, analysis and commentary.)

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Related Reports:

US Manufacturers Roar, Hiring More, Paying More, Thanks to Tax Reform – Plus Manufactured Housing Connected Stocks, Investment Updates

After Tax Cut$, U.S. Records Largest Budget Surplus, Plus Manufactured Home Market Updates

Manufactured Housing Supporting VP Mike Pence in Elkhart, Indiana – Highlights

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3) Marketing, Web, Video, Consulting, Recruiting and Training Resources

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Soheyla is a managing member of LifeStyle Factory Homes, LLC, the parent company to MHProNews, and MHLivingNews.com.

 

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

February 15th, 2017 Comments off
FHFADutyToServeManufacturedHousingGovtSponsoredEnterprisesFannieMaeFreddieMac-postedManufactruredHousingIndustryDailyBusinessNewsMHProNews

Image credit, FHFA to the Daily Business News on MHProNews.com. See PowerPoint, linked below.

News/Analysis. The Duty to Serve (DTS) is widely seen as important for the future of manufactured housing financing by sellers, and for refinancing with personal property loans made more widely available for manufactured home consumers.

The DTS issue is not without controversy, as commentary by M. Mark Weiss of MHARR and Jim Ayotte of the FMHA vividly demonstrates.

Against that backdrop of delays, tension and controversy, the three documents marked “confidential” found linked below were deliberately provided to MHProNews for publication.

These “confidential” documents are hearby being provided to the industry-at-large, for broader consideration.

How and Why

We redacted references that might point to source(s) of these documents.  Otherwise, they are posted below as provided, and without editorial commentary.

As pro-industry trade media, the following points and disclaimers should be noted.

  • As a pair of attorneys confirmed for MHProNews, as media, we have a broad latitude in what we publish when it is submitted to us by a third party.
  • As pro-manufactured housing industry trade media, we review such items on a case-by-case basis. Where is the potential harm? Or, where is the possible good in publishing such items?
  • We also consider, what was the agenda of those who submitted the documents to us?
  • We receive information from sources outside of our team daily at MHProNews. Some of that is purely self-promotional, while some are truly useful news tips, and in some cases, there may be something of little or no ‘news’ value.
  • Protecting the source(s) of information, is a hallmark of proper journalism, which we adhere to routinely.
JimAyotteFMHAManufacturedHousingIndustryVoicesDutyToServeGSEFHFA-MHProNews

For Jim Ayotte, Florida Manufactured Housing Association (FMHA), full commentary, please click the image above or the link here.

MHProNews has published “leaked” material before.  We neither encourage nor discourage professionals from sending us something they think is important for background on stories, or is otherwise newsworthy for the manufactured, modular and prefab “factory built” housing industry.

DutyToServeManufacturedHousingMMarkWeissJDPresidentMHARR-MHProNews-

For M. Mark Weiss, Manufactured Housing Association for Regulatory Reform (MHARR), full commentary, please click the image above or this link here.

The documents market confidential are linked below. Each download is a PDF, which had only those markings on it removed that might reveal the source(s) of the information.

All of the above have reportedly been seen by several dozen professionals in the manufactured housing industry and those involved in the listening sessions with the FHFA and the GSEs held in various parts of the U.S.  In the view of our publisher, there were no compelling reasons not to share this with the manufactured housing industry-at-large.

Image credit, FHFA. The graphic above is a screen capture from the report linked below, sent by the FHFA to the Daily Business News on MHProNews.com.

Other Previously Private, now Public Information from “Listening Sessions”

JimGrayFHFACreditTwitter-postedManufacturedHousingIndustryDailyBusinessNewsMHProNews

Jim Gray, FHFA, credit, Twitter.

Beyond the documents labeled “confidential” above, MHProNews obtained the following via a direct request to Jim Gray, Manager of the Duty to Serve Program, Housing and Community Investment with the Federal Housing Finance Agency (FHFA).

This request was initially resisted, but through MHProNews’ efforts, is hereby being made public.  See that downloadable presentation, linked here.

All of the above are in keeping with our publisher’s mission of being the MH Industry’s top, go-to news resource for “Industry News, Tips and Views Pros Can Use.” © “Often First, Always the Best Industry News Coverage.” ©

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Publisher’s notice: News tips are routinely received for the Daily Business News on MHProNews. You can send a news tip, including documents, to: iReportMHNewsTips@mhmsm.com.

(Image credits are as shown above.)

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Matthew Silver.

Submitted by Matthew Silver, assignments editor for the Daily Business News on MHProNews.

 

Sunday Morning Recap-Manufactured Housing Industry News March 20-March 27, 2016

March 27th, 2016 Comments off

mhpronews_sunday_morningWhat’s New in public focused Manufactured HomeLivingNews.com

What Others Say about Sunshine Homes, Manufactured/Modular Homebuilder

Tragedy and Triumph – Widow shares her Celebration of Manufactured Home

What’s New in Manufactured Housing Industry Professional News

Tunica was tremendous, say attendees. Proposal would merge Fannie, Freddie. MHC to receive free wastewater system. Government impact on housing costs heard in Congress. Terrorism creates uncertainty. Ex-cons building modular homes. Sun acquires Carefree Communities, sets public offering to pay tab. Modular development in Fla. Keys. Zeman closes on three communities. MHC expansion approved in Minn. Trump support strong in MHCs. And much, much more in notions, news and views from factory-built housing around the globe.

Saturday, March 26, 2016

Proposal would Merge the GSEs, Ensuring Credit Access for Affordable Housing Initiatives

Friday, March 25

Thursday, March 24

Wednesday, March 23

HELP Act Designed to Expand Lending Opportunities in Rural Areas

Phenomenal,” “Best Show in Years” 2016 Tunica Show Flash Report

Zeman’s $9 Million Loan Acquires three MHCs in Michigan

Skyline, LPX Gain; MHCV Slips

MHC Owner wants Rent Hike in order to Sell Community

Sun Communities Raising Funds to Pay for Carefree Acquisition

For Profit Hires Ex-Cons to Build Modular Homes

Tuesday, March 22

Insider Trading at MH-related Firms

Sun Acquires Carefree Communities

Sun Communities Advances 3.95 Percent

Investment Writer Touts Financial Performance of MHCs

City Council Approves MHC Expansion in Minnesota

Monday, March 21

Feb. Existing Home Sales Drop, Falling -17.1% in Northeast

Deer Valley Stock Worth the Risk

After Rising 72.5%, Deer Valley Falls 11.59%

Trump Support Strong among Manufactured Home Residents

Frank Rolfe, Dick Moore’s Bob Crawford! MH Lenders! SuperCharged MH Marketing+Sales! Tuesday in Tunica!

Shares of UMH Properties Hit New High

Sunday Morning Recap-Manufactured Housing Industry News March 13-March 20, 2016 ##

(Photo credit: MHProNews)

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

Rep. David Scott: GSEs should Purchase Chattel Loans

March 5th, 2016 Comments off

david_scott_dot_house_.govIn a letter to Melvin Watt, Director of the Federal Housing Finance Agency (FHFA), Rep. David A. Scott (D-GA) reminds Dir. Watt the Housing and Economic Recovery Act (HERA) pinpointed manufactured housing (MH) as an underserved market. Noting the importance of MH as a source of homeownership for millions of Americans, he says homeowners pay more to finance their homes than do buyers of site-built homes, and sometimes loans are just not available, as MHProNews understands..

As the agency is set to finalize the GSEs’ (government-sponsored enterprises) Duty-to Serve (DTS) rule, he urges Dir. Watt to require “the GSEs to significantly increase their support of manufactured housing through the purchase of chattel loans.”

Citing Census Bureau statistics, he says the income of manufactured homeowners is almost 50 percent less than that of all homeowners, and that MH accounted for approximately 12 percent of all new single-family homes sold in the U S. in 2013. He writes, “Of this, manufactured housing represented more than 80 percent of all new homes sold under $125,000, 64 percent of new homes sold under $150,000 and 35 percent of new homes sold under $200,000.”

He states because MH are financed as chattel—70 percent of all MH are thus financed—buying an MH can be expensive. He writes that the Consumer Financial Protection Bureau (CFPB) says that the cost of an MH sited in a manufactured home community (MHC) could be as much as 50 to 500 basis points more than a site-built home.

If the proposed DTS rule requires the GSEs to create a secondary market for chattel loans, the opportunity for homeownership will increase for many more working class families.

For comments on the Federal Housing Finance Agency’s proposed GSEs Duty to Serve rule by Michael A. Parham, JD, click here. ##

(Photo credit: David Scott.house.gov–Rep David A. Scott)

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

MHI’s Lesli Gooch Underscores the Need for GSE’s Purchase of Chattel Loans

February 1st, 2016 Comments off

Lesli_M_Gooch__MHI_senior_vice_president_forgovernment_affairsWriting for nationalmortgagenews, the Manufactured Housing Institute’s (MHI) senior vice president for government affairs, Lesli M. Gooch, noting the average price of a new manufactured home is $64,000 as compared to a new site-built home price of $374,100, states manufactured housing presents the single most affordable option for lower income families.

Manufactured home (MH) loan volume for loans below $75,000 dropped by five percent in 2014 despite the overall housing market improvement. The Census Bureau reports of the 440,000 new single-family homes sold in 2014, only 12.8 percent were MH, as MHProNews has learned. MH shipments in that year accounted for 9.1 percent of single-family housing starts, and six percent of all housing starts.

Congress previously identified manufactured housing as an underserved market that the government-sponsored enterprises (GSEs) Fannie Mae and Freddie Mac should have a duty to serve (DTS). In Dec., 2015 the Federal Housing Finance Agency (FHFA) proposed a new DTS rule which would require the GSEs to purchase chattel loans for manufactured homes, thereby providing a secondary market for manufactured housing loans.

Including chattel loans in duty-to-serve would help by providing a secondary market for those loans and help provide more access to credit to many moderate- and lower-income consumers. A robust secondary market for chattel loans is critical to ensure sustainable access to affordable housing,” writes Gooch. The Dodd-Frank Act provides an array of protections for purchasers of manufactured homes.

She adds: “Rising home prices and rental rates are squeezing American buyers, and manufactured housing provides a key alternative. To restore the American dream of homeownership for these creditworthy families, housing policy must be fixed to ensure this underserved market receives the same.” ##

(Photo credit: nationalmortgagenews-Lesli M. Gooch)

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

Government Sponsored Enterprises Grew Multifamily Loans in 2015

January 14th, 2016 Comments off

freddie mac  globest   creditGSEs Fannie Mae and Freddie Mac both increased their multifamily loans and credit enhancements business in 2015, totaling $89.6 billion on the year. Freddie edged out Fannie in volume, with Freddie writing $47.3 billion, a 67 percent increase from 2014’s $28.3 billion, while Fannie reported $42.3 billion, a 46% increase from the $28.9 billion mark set in 2014.

Of Freddie’s new business volume, $17 billion was not subject to the FHFA $30 billion cap and was used for manufactured home loans as well as for senior housing, smaller multifamily projects and affordable housing.

David Brickman, executive vice president for Freddie’s multifamily, said, “Our financing is in every corner of the multifamily market and more diverse than ever. We are focused on increasing the availability of mortgage capital, especially to the affordable and workforce housing sectors where demand continues to far outstrip supply.”

Ninety percent of Freddie Mac loans support rental units for low- and moderate-income households. Further, the majority of the $47 billion purchased in multifamily mortgages were then securitized transferring most of the credit risk from taxpayers to private investors.

At Fannie Mae, Bob Simpson, vice president of affordable, green, and small-loan business at the company, said last year there was considerable growth in in its affordable housing loans.

We rolled out a competitive bridge-loan product this year called the ARM 7-4,” Simpson said in September. “Basically, it provides borrowers with a seven-year, variable-rate loan with a 4% embedded cap. It comes with a one-year lockout, a 1% prepay premium, and a fixed-rate conversion option. We’ve seen a tremendous amount of growth with this product for preservation deals because it provides borrowers with the flexibility of a bridge loan so they can acquire a property and turn it into a tax credit deal a year or two down the road, or they can convert it to a permanent fixed-rate loan if their plans change.” ##

(Photo credit: globest–Freddie Mac headquarters)

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