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‘Minorities Aren’t Being Well Served in Housing Finance’ Today, per Mozilo – Former Exec Near Eye of the 2008 Housing/Mortgage Storm

May 15th, 2019 Comments off

 

MinoritiesAren'tBeingWellServedHousingFinanceTodayPerAngeloMoziloFormerCountrywideChairmanNearEyeof2008HousingFinanceStorm

Angelo R. Mozilo is the former chairman of the board and chief executive officer of Countrywide Financial until July 1, 2008,” according to Wikipedia.

 

 

Put differently, Mozilo was near the eye of storm during the Housing and mortgage crisis that sent the economy and markets into a tailspin, causing the loss of businesses and millions of jobs. Not that Mozilla was alone in that fiasco, far from it. But his perspective is a noteworthy one.

That said, in his first interview since the 2008 crisis, Mozilo in an interview with Fox Business’ Liz Clayman said that minorities aren’t getting well served, and that barriers to home ownership must be removed.

Before teeing up this interview, given that more than a decade after the housing and financial system meltdown has passed, some facts are reviewed. This classic video 3:12 video report is useful in that regard.

 

 

Economist Thomas Sowell also weighed in on the matter years ago.  While holding Frank more responsible, he found President Bush and Alan Greenspan had responsibility in the matter too.  Rephrased, his perspective was similar to what’s portrayed by the Fox News video report, above.

 

 

Former Representative Barney Frank himself, in hindsight, admitted that he didn’t see the financial crisis coming.

Then keep in mind that Warren Buffett led Berkshire Hathaway dumped shares of the GSEs of Fannie Mae and Freddie Mac. In 1988, Buffett was touting those stocks in Fortune Magazine.  In the quote that follows the quoted text from GuruFocus is turned bold and brown, as MHProNews often does, but we’ve changed the direct quote from Buffett in blue, so that it pops.

By 2000, Buffett was the largest shareholder of Freddie Mac, whose stock had soared to between $41 and $64 per share, for a sizable gain.” But per GuruFocus,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. When Brad Bondi, deputy general counselor of the commission, asked if he sold because the stocks were no longer good investments, Buffett responded that hedidn’t know they weren’t going to be good investments but becameconcernedabout their management.”

 

MobileHomeShipmentsManufacturedHomeShipmentChartMHIAShipmentsMHIndustryChampionSkylineHUDCodeDailyBusinessNewsMHProNews

What was accomplished previously in sustainable shipment levels, can clearly be done again. Data above per Skyline-Champion investor relations information. SKY is a MHI member company.

 

The Manufactured Housing Connection to the Mortgage Crisis?

In the mid to late 1990s, manufactured housing soared to its highest sales levels since the establishment of the HUD Code which federally regulated the construction, safety, and energy standards for manufactured homes via performance based vs. prescriptive standards.

Some pundits in manufactured housing say that poor underwriting and flimsy verifications by lenders fueled the surge in manufactured home sales. While lending absolutely played a role, objectively, one must also bear in mind that hundreds of thousands of consumers were keen to own the manufactured homes they bought. Buyers were willing to ‘sign on the dotted line’ for a HUD Code manufactured home on terms of often 20 to 30 years.

Bad lending practices in MHVille in those days can’t be used to cloud the fact that buyers were purchasing manufactured homes at a clip that caused Harvard’s Eric Belsky with the Joint Center on Housing Studies to opine that by 2010, he expected manufactured housing to surpass site building.

Belsky said that knowing about the problems with rising defaults in manufactured home (MH) lending.

 

ErikBelskyManufacturedHousingMHIWebsiteDailyBusinessNewsmHProNews

The Eric Belsky search result remains the same on the MHI website, on 5.15.2019 at about 1:38 PM ET.

 

But as to poor MH lending practices, there are some observers who have said that poor manufactured housing lending practices was “the petri dish” – a metaphor for a laboratory experiment – for conventional housing and its subprime lending problems.

 

 

The First New Mozilo Interview

With that background, the video interview with Mozilo will be of greater insight.

Former Countrywide CEO Angelo Mozilo, said that certain housing barriers needed to be removed, in his first interview since the 2008 financial crisis.

I was asked to come to this [SALT] conference and I think turning 80 had a big effect on me. You know, I’m running out of runway. And I thought well now’s the time to speak out and I don’t have any inhibitions anymore,” Mozilo said.

 

 

Housing…”It’s a very important part of the economy, but it’s also a very important part of people’s lives and their children’s lives,” Mozilo said. “And since the crisis, things have clamped down again.”

African-Americans, Hispanics — still very difficult for them to get a home of their own even though they could afford it,” he said. “They can’t get over all the barriers that are in their way because the barriers don’t fit their lifestyle. But those barriers have to be taken down.”

Barriers to qualify for a mortgage, the underwriting requirements, just don’t fit the lives of minorities,” Mozilo explained as he pointed out the housing segment of the economy is missing out as a result. “Fannie Mae had a survey some years ago that clearly pointed out the African-Americans and Hispanics have a higher desire for housing than do whites. Whites considered, you know, that’s their part of living in America you’re entitled to.”

While Mozilo was speaking in general, his points mirrored some comments made by HUD Secretary Carson in his recent speech, linked below.

 

Dr. Ben Carson Secretary of Housing and Urban Development Manufactured Housing Conference Remarks New Orleans, Louisiana, Hyatt Regency Hotel, May 7, 2019

 

Defensively, Mozilo wants people to believe that it was Countrywide’s duty to lower the barriers of entry for everybody in America getting a home, as long as they could afford it.”

Mozilo also believes that he and Countrywide became an “easy target” during the crisis because of their size and also for making these loans, which he alleges only accounted for 3 percent of business.

This is a huge economy — the whole world economy,” Mozilo stated. If you take all the assets of the world and you put a price on it and you value one and you take the amount of subprime mortgages in the United States — it’s a pebble in an ocean — it’s ridiculous.”

People who want to discriminate said, ‘Look, we told you if you don’t make these loans you’re going to have a crisis.’ Nonsense, absolutely nonsense. They had nothing to do with it.”

Some of those arguments could easily be applied to the tiny percentage of the economy that manufactured home loans which defaulted represent during the late 1990s, and early 2000s.  That’s not to white-wash wrong-doing.  But it is to put it into perspective.  As an industry insider told MHProNews, what took place in MHVille was like “a pimple on an elephants ass” – especially when compared to the financial blood bath that conventional housing caused the economy.

So, why is manufactured home lending still being de facto punished, nearly 20 years after MH lending’s meltdown?  Perspective is necessary, and that clarity of understanding can lead to a better America.  Who says?  HUD Secretary Ben Carson, as he advocates for manufactured housing.

So why aren’t Secretary Carson’s comments on the MHI website?

 

HUDSecretaryBenCarsonAffordableHousingSupplyDemandCostSavingsFHFAAppreciationSustainableOwnership5000renters200000OwnersQuotesMHProNews

To see Secretary Carson’s entire address and more related information, click here.

 

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

 

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$500 Billion Dollar Affordable Housing Plan from Warren, Growing Manufactured Home-Impacting Plots

September 29th, 2018 Comments off

$500BillionDollarAffordableHousingPlanWarrenGrowingManufacturedHomeImpactingPlotsDailyBusinessNewsMHPronews

There are at least 4 recent “affordable housing program” proposals that have been announced that have the potential to impact manufactured housing for good or ill.

3 of them are by higher-profile 2020 Democratic presidential hopefuls.

Senator Kalama Harris’ (CA-D) office has provided a plan she has styled the “Rent Relief Act of 2018,” which can be read at that hot-link or as a download.

Senator Cory Booker’s (NJ-D) communication’s team provided MHProNews his idea that will impact the affordable housing and manufactured home markets in a concept he’s styled “Housing, Opportunity, Mobility, and Equity Act of 2018.’’

This passed week, Senator Elizabeth Warren’s (MA-D) office has provided the Daily Business News on MHProNews her plan. It’s dubbed the “American Housing and Economic Mobility Act.”

The last plan was described by the left-of-center Intercept  as “The legislation calls for a half-trillion dollar investment in affordable housing over the next 10 years, creating up to 3.2 million new units for low- and middle-income families.” Why have a plan that only covers less than half of the affordable housing shortfall reported by the National Association of Realtors® (NAR) ?

LessHousingForTheBuckBloombergHousingCostChartDailyBusinessNewsMHProNews

That’s 3 plans from 3 Democratic hopefuls.  We will review those in the days ahead here on MHProNews, but note here that each involves an effort to frame affordable housing as an important issue for the upcoming midterms. Each prospective Democratic hopeful believes that affordable housing is one of the necessary planks for winning the midterms, and thus winning the White House 2 years later.

LawrenceYunNARShort8.3MillionHousingUnitsRisingRentsHousingPricesCuredOnlyByMoreBuilding

Collage by MHProNews.

That’s a huge signal to manufactured housing tea-leaves-readers. Note that a quick thumbnail is this.  Each plan has an opportunity to erode the private-sector solution for affordable housing that is provided by the manufactured housing industry.

Henry Kraemer, a Portland-based activist, co-authored an article in The Nation in May making the political case for Democrats to take up housing issues. In August, he followed up withco-authored report laying out specific policy recommendations, such as new rent subsidies and expanded public housing,” said the Intercept.

Manufactured housing investors and professionals – sit up and take notice from the ONLY trade publisher in MHVille that keeps you abreast of these topics which can help-or-harm your bottom lines with such clarity and depth of information. Where’s the Manufactured Housing Institute’s (MHI) analysis and commentary on these looming issues?

InterceptCityLabsBloombergTheNationDailyBusinessNewsMHProNews

HUD Secretary Ben Carson and the Trump Administration’s Plan – Which Has Noted MH

The “U.S. Department of Housing and Urban Development announced that it aims to “streamline and enhance” an Obama-era rule on desegregation,” said CityLabs.

BenCarsonIsYimbyNowEverythignConfusingCityLabsDailyBusinessNewsMHPronews

The same source said that this time “...HUD is adopting a novel framework for rolling back its rule on desegregation: Carson is pitching this rule change as a way to fend off NIMBYism.” If that sounds like YIMBY vs. NIMBY, CityLabs says you’re right. Once more, it is the Daily Business News that spotlighted that issue, which a few state association executives, the Manufactured Housing Association for Regulatory Reform (MHARR), and a small circle of others have mentioned.

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

A Washington, D.C. source has told MHProNews that our submission to HUD and the DOE have drawn attention on manufactured housing issues. CityLabs calls Carson’s move an about face. Coincidence?

October15-172018RSVPmanufacturedHousingFall2018LegacyHousing

 The banner above is not connected to this story. You can learn more by clicking here or the banner above.

When former President Jimmy Carter blasted the Trump Administration for their failure to address affordable housing as he thought it should be done, a HUD spokeswoman told MHProNews that part of the Carson plan is manufactured housing.  She specifically pointed to the talk Carson gave, which is linked below.

“A New Era of Cooperation and Coordination,” is Promised by HUD Secretary Carson, Saying “I Hear You”

The reported hit by former President Jimmy Carter (D) on President Trump, , covered exclusively in MHVille on the Daily Business News, is found at the link below.

 

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


Possible Warning Signs…

The above link doesn’t mean that manufactured housing professionals should be too relaxed about maneuvering that is underway at HUD, by MHI and MHARR.  See that report, linked below.

MHI SVP Lesli Gooch & MHARR CEO Mark Weiss Bookend New, Prior HUD Controversies

ManufacturedHousingAssocRegulatoryReformJOINMHARRbani-200x200

Click here or on the graphic above to learn more, which is not connected to this report.

As the midterms approach – now just 38 days away, and with early voting starting in some places – the industry needs to wake up and smell the coffee for what’s coming.  There are signals both ways as to how the polling is going.

Pew Research says that interest among voters about the midterms is at 72 percent, a sky-high level for non-presidential year voting. It’s a jump ball between the two major parties.

See the new, related report, linked below. MHProNews will look at several facts and analysis in upcoming reports in the days ahead.  Stay tuned to your #1 source for manufactured home “Industry News, Tips, and Views Pros Can Use,” © where “We Provide, You Decide.” ©.  You can sign up for our industry leading news at the link below. ## (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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HUDOfficeBuildingLoisStarkeyRichardDickJennisonPamDannerManufacturedHousingInstituteMHILogoDailyBusinessNewsMHProNews575

http://www.mhpronews.com/blogs/daily-business-news/association-reaction-to-huds-pam-danner-lois-starkey-revelations/

 

Nathan Smith, SSK Communities, From Mobile Home Resident to Manufactured Home Communities Owner, & Manufactured Housing Institute Leader

MHI SVP Lesli Gooch & MHARR CEO Mark Weiss Bookend New, Prior HUD Controversies

August 28th, 2018 Comments off
LesliGoochMHIMarkWeissMHARRSecBenCarsonHUDBrianMontgomeryFHACommisionerPhotosDailyBusinessNewsMHProNews600

Left to right, Lesli Gooch, Ph.D., SVP at MHI; Mark Weiss, JD, CEO MHARR, Secretary Ben Carson, M.D., HUD; Brian Montgomery, Assistant Secretary for Housing and FHA Commissioner at HUD. 

HUD Secretary, Dr. Ben Carson, as the saying goes, “gets it.” – wrote Mark Weiss, JD, President and CEO of the Manufactured Housing Association for Regulatory Reform (MHARR) in a new Issues and Perspectives.

  

First, and most fundamentally, he understands – and has very plainly stated — that to successfully address and ultimately solve the nation’s affordable housing crisis, which has some 21 million American families spending more than one-third of their household income on housing expenses and 11 million of those spending more than half of their income on housing, it is “vitally important … to develop more affordable housing.” – declared Weiss, as part of a periodic release to the Daily Business News on MHProNews.

Beyond that,” said Weiss, “he [Carson] understands (unlike some of his predecessors at HUD) that “the first and most important source” of that much-needed affordable housing, “will always be private enterprise, whether operating independently, or in cooperation with HUD [or] other government initiatives.” 

And, perhaps most significant of all, he appears to understand what must be done – at HUD – to spur the growth and availability of affordable housing and home ownership from within the private sector and, more specifically, from within the manufactured housing industry that HUD not only comprehensively regulates through its Title VI manufactured housing program, but is also authorized to help finance through programs administered by its Federal Housing Administration (FHA).”

That statement by Weiss is a reminder to Daily Business News readers that a former U.S. president specifically promoted the use of FHA lending to sell more “mobile homes,” as that president put it, and for similar reasons.

Help Others “Get It” – Loans on “Mobile Homes” Promoted by Another U.S. President

So if Secretary Carson and HUD’s returning Brian Montgomery mutually address problems – like the GNMA 10/10 rule on FHA Title I (personal property) loans, or other reforms needed for FHA Title II lending – they’ll be following in that prior president’s pattern of financing support for the manufactured home (MH) industry. 

The question, though,” said Weiss “is whether the industry’s post-production sector (i.e., retailers, communities, developers, finance companies, and insurers, among others) “gets it,” and will act to create the type of independent collective representation that will be needed to seize these unparalleled policy opportunities.” 

In a speech earlier this year to the Policy Advisory Board of the Harvard University Joint Center for Housing Studies, and in a follow-up HUD publication entitled “Regulatory Barriers and Affordable Housing,” Secretary Carson clearly pinpointed the keys to unleashing the enormous potential of the manufactured housing industry to help expand homeownership and fulfill HUD’s essential mission of “ensur[ing] safe, affordable housing for [all] Americans.” – said MHARR’s CEO.

First, Secretary Carson observed that the availability of affordable housing for Americans cannot be achieved “by hindering those who are most responsible for creating it.” He thus emphasized the importance of the current – and ongoing — regulatory review of the HUD manufactured housing program being conducted under Trump Administration Executive Orders 13771 (“Reducing Regulation and Controlling Regulatory Costs”) and 13777 (“Enforcing the Regulatory Reform Agenda”).”- said Weiss.

MHARR, for its part, has strongly supported and encouraged this long-overdue review of HUD regulations and other pseudo-regulatory actions taken in violation of applicable law, and has submitted extensive comments detailing various aspects of the HUD manufactured home regulatory structure that must be changed, not only to achieve the regulatory reform agenda of President Trump, but also to achieve the overriding objective of the Manufactured Housing Improvement Act of 2000 – i.e., “to facilitate the availability of affordable manufactured homes and to increase homeownership for all Americans.” – said Weiss.  It’s a reference that evokes a reminder that the Manufactured Housing Institute (MHI)  Senior Vice President (SVP) Lesli Gooch, Ph.D., admitted to the Washington Post that MHI did not attempt to influence HUD regarding Pam Danner’s overreaches at the Office of Manufactured Housing Programs (OMHP).  That goes to the heart of what an association is supposed to do, and what Gooch admits MHI deliberately chose not to do.  ICYMI, see that prior fumbled opportunity by MHI in the report linked below.

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

Significantly, though – and as important as that regulatory review and reform process is – Secretary Carson did not stop there,” said Weiss.  

Read the rest on the MHARR website, here or at the link below.

“Another Missed Post-Production Opportunity?”

 

 MHI’s Lesli Gooch Claim Launches New Controversy…

MHARR has not yet spoken publicly about the following new controversy, declining comments about the written claim made below by MHI SVP Lesli Gooch.

It should be noted that the Daily Business News on MHProNews asked several HUD officials about the same comment by Lesli Gooch.

HUD has also avoided commenting on Gooch’s bold claim. 

Here’s what Gooch said as part of a longer chest-thumping statement, which she wrote in MHInsider.  Gooch called Brian Montgomery “MHI’s Candidate” for the HUD role of Federal Housing Commissioner, and the big man behind Secretary Carson.

 

ManufacturedHousingInstituteMHILogoGotCloutManufacturedHousingInstituteSVPLesliGoochPhotoDailyBusinessNewsMHproNews

From a column written by Lesli Gooch for MHI in MHInsider™.

What precisely does Gooch’s claim imply?

Isn’t she boldly hinting at MHI’s “Got Clout?” campaign claim? And if so, how will that “clout” be used by MHI?

Will Gooch and MHI be part of the problem of past HUD overreaches, or of FHA Title I lending curtailment?  Keep in mind that Tim Williams – prior MHI Chairman and still CEO of  21st Mortgage – curtailed FHA Title I lending to the independents of the industry. Meanwhile, Vanderbilt Mortgage and Finance kept making FHA loans to Clayton retailers, even after 21st suspended their use of FHA Title I loan program.

That in turn is evocative of how 21st previously curtailed lending to manufactured housing independents.  That  resulted in the failure and consolidations of numerous independents. ICYMI, that prior report can be accessed via the link below.

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

Will that claimed “MHI Clout” being asserted by Gooch with Brian Montgomery be used to continue to foster an environment that further consolidates the independents of the industry? 

How aware are officials at HUD of the history of the causes of the MH industry’s consolidation? 

As a reminder, Berkshire Hathaway brands and MHI have routinely ducked or declined discussion, debate, and comment that explains the contradictions noted in statements made by Warren Buffett quoted in Smoking Gun 3, claims by 21st’s Tim Williams, and those that relate from the Kevin Clayton video, posted in that report. 

None of the parties involved in this new controversy over Gooch’s claim directly answers those or other possible questions. 

That said, MHARR’s CEO finished his commentary this way. “As MHARR has emphasized before, conducting meetings, conferences, seminars and other similar gabfests will not change government policies in Washington, D.C. – especially ones that have been in place for years or even decades (like the under-utilization of federal preemption authority to clear away discriminatory exclusion enactments).  What is needed is strong, focused, aggressive, collective and most-importantly, independent advocacy on behalf of the thousands of smaller businesses that constitute the core of the industry’s post-production sector, whose interests today are, more often than not, sacrificed to the industry’s largest corporate conglomerates.

The opportunity for real change and for real growth in both the near and long-term, clearly exists.  The question is whether that opportunity will be seized and maximized where it counts the most.”   

Again, the full MHARR commentary is found at the related reports linked, above or here. See other related reports, further below.  “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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President Trump Spotlights Factory Home Builder in Speech, Proven Promotion, Support of Industry Advancement

June 5th, 2018 Comments off

Presidential powers are substantial, but they are not unlimited. So among the tools a president can use to some effect is the bully pulpit. That’s the power of spotlighting a topic via a public forum.

 

In a speech, President Donald J. Trump raised the profile of a once-famed factory-based home builder he knew. The video of that part of his speech, is shown below.

 

 

The president’s family business has also had direct ties to an upscale factory home builder, Revolution PreCrafted Homes.

The 45th president clearly has personal knowledge of factory-crafted home building, as well as of conventional housing construction.

It is worth noting that Vice President Mike Pence hails from Indiana. Industry sources tell the Daily Business News, that then-Governor Pence understood manufactured housing (MH), used the proper terminology, and was supportive of the industry.

In Senate testimony, HUD Secretary Ben Carson, MD, has called modern manufactured homes “amazing.” Meanwhile, Secretary Carson labeled the regulatory regime of the Pamela Beck Danner era as “ridiculous.” Dr. Carson did so without mentioning her by name.

TrailerHouseMobileHomeManufacturedHomeFactoryBuiltHousingEvolution101MHProNews-MHLivingNews

Make a habit of using the correct terminology.

 

Operation Breakthrough

Levittown and that builder named by the president was an example of factory-based home building were included in HUD’s report on Operation Breakthrough, linked below. The linked reports on Operation Breakthrough – along with other linked resources from this article – can be read later, for additional details, and a deeper understanding.

HUD’s Operation Breakthrough, Promoting Factory, Industrialized Building – Mobile Home Era to Modern Manufactured Homes.

A HUD’s PD&R report linked below are one of the sources that demonstrated via university-level research that modern manufactured homes appreciated side-by-side with conventional housing in urban infill settings.

 

The full implementation of two existing laws – manufactured housing’s enhanced preemption and the Duty to Serve could unlock two trillion dollars in additional growth, without the need for massive federal spending.

Enforcing the law” has become a Trump Adminstration catch-phrase.

Enforcing the two laws linked here and above could pave the way to home ownership for millions, which in turn would spur the personal wealth of many, including blacks, Hispanics and all other demographic groups.

As Secretary Carson reminded the nation last year, home owners have an average net worth of $200,000, while renters only have an average net worth of $5,000 dollars.

There are debatably few other items that the Trump Adminstration could do than enforce those two existing laws, which would:

  • cost the federal government less tax payer money over time,
  • yield more wealth for millions,
  • all while creating more good jobs,
  • and higher domestic economic growth.

Virtually everyone, save perhaps a few monopolistic forces, would benefit from enforcing two laws already on the books regarding manufactured housing.

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

 

Posturing vs. Doing

The Manufactured Housing Institute (MHI) has attempted to claim credit for the passage of the MLO rule when S 2155 was signed into law. The Masthead predicted that this dubious MHI claim would occur from the Berkshire Hathaway dominated association, prior to the signing of the bill.

It was the Trump Administration, not MHI, that made the MLO rule passage possible.

White House Signing Ceremony on Historic Pro-Growth Financial Regulatory Reform

Note that then candidate Trump pushed for such a bill, by campaigning for reforms of Dodd-Frank.

By contrast, Warren Buffett backed Hillary Clinton pledged to do what Barack Obama did. Chairman Buffett led Berkshire Hathaway used their manufactured housing mouthpiece, MHI, to posture reforms of Dodd-Frank for years. But that reform of Dodd-Frank was only accomplished under President Trump.

Buffett publicly supported President Barack Obama, who pledged to veto a bill that included a similar provision to S 2155. MHI’s now exited government relations Vice President Jason Boehlert admitted in writing that the passage of MHI’s bill, Preserving Access was unlikely while President Obama was in the White House.

2012 Election Results and Coming Lame Duck Session

By contrast, the Manufactured Housing Association for Regulatory Reform (MHARR) said early on in the Trump Administration that the industry could not ask for a better president in the Oval Office that Donald Trump.

Once understood, its an apparently classic case of what President Trump has called “a rigged system.”

 

Examples of a Corrupt, Rigged System?

The Washington Post made it clear that it was MHARR, not MHI, that worked with the Trump Administration to exit the destructive regulatory steps Pam Danner, JD, caused manufactured housing operations during her tenure at the Office of Manufactured Housing Programs (OMHP).

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

MHI EVP Lesli Gooch specifically told the Washington Post that they did not weigh in on the Danner controversy. That confirmed months of MHProNews reporting on that subject.

By contrast, Mark Weiss, President and CEO of MHARR, was cited by the Washington Post as specifically pushing for the removal of Danner as an Obama Administration holdover, who was working contrary to President Trump’s regulatory freeze order.

The fact-patterns appear to be stark, and clear.

The Buffett/Berkshire dominated MHI was allegedly posturing reforms of Dodd-Frank and HUD, but in fact supported for president, first Barack Obama and then Secretary Hillary Clinton. That’s Mr. Buffett’s right, but then it is debatably unjust for MHI to claim that they were trying to mitigate regulations.

In fact, regarding the Department of Energy (DOE) plans for manufactured housing under the Obama Administration, MHI was promoting heavier regulations, while MHARR stood alone among MH industry associations in Washington D.C. to stop them.

Manufactured Housing Institute (MHI) Shifts on DOE Regulatory Rule, Report, Analysis

Marty Lavin, JD, bluntly said on the record that MHI was working for “the big boys” and their interests.

The MHI award-winning Lavin has previously said “pay more attention to what people do than what they say.” In hindsight, isn’t it clear that MHI said they wanted to make certain reforms, but in fact Buffett’s “big boys” – such as Berkshire owned Clayton Homes, 21st Mortgage and Vanderbilt Mortgage and Finance (VMF) – were working to maintain or even increase regulatory burdens?

Why?

Because heavy regulations are both a barrier of entry to new businesses, and are also a force that can crush existing business operations. It is part of Buffet’s strategic “Moat” philosophy.

 

Using the established principles that high taxes, and high regulations harm smaller business, the Buffett tool of MHI was de facto aiding in the consolidation of manufactured housing companies. These are points President Trump has often raised in a general way in his speeches.

Sources on- and off-the-record have leveled charges that MHI was working against the interests of smaller companies, while Berkshire Hathaway owned brands and some others in manufactured housing were “consolidating” – or killing off – smaller independents for years. MHI’s own data reflects the trend.

 

While MHARR has raised such issues in their own fashion, only MHProNews among the industry’s trade media has spotlighted these concerns. Long-time readers will recall that MHProNews editorially supported and endorsed President Trump during the 2016 campaign. That support drew the attention of the presidential campaign, which for months had one of this writer’s articles on the Donald J. Trump campaign website.

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While the Manufactured Housing Institute (MHI) paid for two pro-Clinton speakers in the closing days before the 2016 election, the Kovach family and MHProNews supported Donald J. Trump’s candidacy as the best for the industry, small business, and hundreds of millions of Americans. One of those stories ended up on the president’s campaign website, and hundreds of conservative and pro-Trump websites.

While industry’s bloggers and MHProNews competitors were often shilling or cheering MHI and Berkshire Hathaway owned brands, MHProNews and those who support this platform stood alone in the industry’s media to warn the industry’s members against the complex, and tortured ways MHI and Berkshire Hathaway were killing off and/or “consolidating” companies at bargain prices.

Time Travelers, and the Future of American Homes

Marty Lavin, a manufactured home industry success story in his own right, has said “follow the money.” People are entitled got their own opinions, but they are not to their own facts. MHI can claim to be working to mitigate regulations, but where is their evidence? Why did MHI VP Rick Robinson dodge questions and debate in Deadwood in 2017? Or why did MHI President Dick Jennison dodge questions in Louisville in 2018?

The Trump Administration is doing their part. They are striving to undo the damage of years of crony capitalism in Washington, D.C., step-by-step.

If Brian Montgomery and Secretary Carson will avoid the trap of appointing a MHI candidate to be the non-career Administrator of OMHP at HUD, it could be another next step forward for millions of Americans.

Based upon reports from industry sources, MHProNews has supported Vic DeRose to replace Danner. DeRose could be someone that holds to the regulatory philosophy of the president, to administer the manufactured housing program in a way that could benefit industry and consumers alike. “We Provide, You Decide.” (C) ## (News, analysis, and commentary.)

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

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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.