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“Disastrous,” “Uncompetitive” “Takeover” of “Government Sanctioned Monopoly” Blasted in Congress as Bi-Partisan Fix Unveiled

September 6th, 2018 Comments off

 

DisasterousUncompettiveTakeoverGovernmentsanctionedMonopolyblastedCongJebHensarlingBarryNoffsingerCreditHumanDailyBusinessNewsMHProNewsIn a video statement today announcing a bipartisan measure, Financial Services Chairman Jeb Hensarling (R-TX) raised the alarms about the dangerous “monopoly” that is increasingly placing housing finance “at systematic risk.”

 

Hensarling said that today 9.6.2018, marks the 10th anniversary of the housing finance takeover by the Federal Housing Finance Administration. (FHFA). He uses strong language, including “disastrous,” “uncompetitive,” and “monopoly.”

The FHFA and the GSEs have been periodically in the spotlight for years in MHVille, as the Manufactured Housing Institute (MHI) – most recently in their latest emailed ‘news,’ postures doing something.

An MHI member in the community sector of MHI told MHProNews yesterday that the MHI letter read much like their bland statements did 10 years ago.

Indeed. 21st Mortgage President and CEO Tim Williams, in a letter shown below, encouraged near the end of the document customers to ask Congress to get the GSEs involved.

But doesn’t that beg the question?  Because Congress had already spoken. That’s what HERA 2008 was supposed to fix, with the “Duty to Serve” (DTS) manufactured housing and underserved markets. The point of frustration by the Manufactured Housing Association for Regulatory Reform (MHARR) is precisely that laws on the books, like DTS, are not being applied.

The 21st letter with the reference to the GSEs is below.

21stMortgageCorpTimWillamsJune112009LetterBerkshireHathawayWarrenBuffettClaytonHomesManufacturedHousingIndustryDailyBusinessNewsMHProNews

This document supports the claim of our source that said that 21st and VMF turned over data to the GSEs, and were shocked at how poorly their manufactured home loan portfolios preformed. See the last paragraph. 

 

GSEs Shocked

But what another MHI member told MHProNews just over a week ago is this. What 21st and the Berkshire Hathaway manufactured housing lenders accomplished about 9 years ago was to shock the GSEs into inaction.

Unlike more recently – when Clayton Homes’ Vanderbilt Mortgage and Finance (VMF) and 21st reportedly declined turning over data to the GSEs – circa 2008-2009, the Berkshire brand MH lenders DID turn over data to the GSEs. The reaction of the GSEs was one of “shock,” said our source, at “how high” the default rates were on Berkshire’s manufactured home loan portfolios.

In fairness, it should be noted that back then, some of those loans were purchased by Berkshire from other lenders, most if not all of whom had existed the MH lending business. Nevertheless, their portfolio of loans and the total performance is what it is.

So, the GSEs declined getting involved in manufactured housing lending at that time, after seeing the Berkshire brands lending performance.

More recently, because the GSEs didn’t get Berkshire data, this time, the GSEs did get involved, but only with a toe in the water.  MHARR has pointed out what a sliver of the market the GSEs promised commitment represents.

FannieMaeFreddieMacLogosPostedManufacturedHousingProfessionalMHProNews

The Government Sponsored Enterprises (GSEs) of Fannie Mae, and Freddie Mac.

They [the GSEs] don’t want to loan on manufactured homes, period,” per our informed source. “That’s why they’ve created programs like MH Select [some years ago], that clearly failed [to gain traction in the market].” 

Now, the GSEs are promoting lending that parallels MHI’s so-called new class of homes, that is backed by Clayton and the ‘big boys.’

That new program is also expected to have problems, and fail, our source with MHI and GSE connections said. The source said that once these new MH program fail, the GSEs will have deniability. “Look, we tried,” is what the MHProNews source said the GSEs will likely say when that happens.

Another source with ties to the GSEs and MHI has said similarly.

 

Barry Noffsinger, Credit Human, and GSE Reminders

BarryNoffsingerCreditHumanManufacturedHomeLoansNotMObileHOmesDailyBusinessNewsMHproNewsOur Daily Business News sources cited above echo a public statement made by Credit Human Credit Human manufactured home lending manager, Barry Noffsinger, has said.

Noffsinger has said in association meetings that he’s personally told representatives of Fannie Mae that MH Select was an insult to intelligent manufactured home shoppers. It was saying to them, ‘look, we don’t give the same terms for manufactured homes as we do for conventional housing.’

That’s an insightful statement by Noffsinger. Because doesn’t it apply equally to the new plans by the GSEs that only apply to MHI’s controversial new class of homes? Doesn’t it diminish the vast majority of “standard” manufactured homes, by implication?

 

Common Denominators

The common denominator in what Hensarling said, and these other incidents could be boiled down to the words “disastrous,” “monopoly,” and “uncompetitive.”

The full statement by the Financial Services Committee, followed by closing thoughts, are found below.

 

HouseFinancialServicesCommitteePressReleaseDailyBusinessNewsMHproNews598

Official statement from the U.S. House of Representatives to MHProNews.

Chairman Hensarling Delivers Opening Statement, Unveils Bipartisan GSE Reform Bill

WASHINGTON – Financial Services Committee Chairman Jeb Hensarling (R-TX) delivered the following opening statement at today’s full committee hearing on the 10th anniversary of the federal government’s takeover of Fannie Mae and Freddie Mac, the failed government-sponsored housing enterprises (GSEs). During his remarks, Hensarling detailed his bipartisan plan to reform our broken housing finance system.

September 6th, 2008 is a day that will live on in economic infamy. For today marks a not-so-happy anniversary of one of the most frustrating and costly moments in recent financial history: namely, the 10 year anniversary of the federal takeover of the failed housing government sponsored enterprises, Fannie Mae and Freddie Mac (the GSEs).

The GSEs’ anti-competitive government charters and ever-increasing “affordable housing” mandates created a toxic mess of systemic risk. Their collapse directly led to the second worst financial crisis in our history, causing more than $190 billion of taxpayer bailouts and forcing them into a government-run conservatorship.

Embarrassingly, ten years later, the GSEs remain in conservatorship, very much alive and very much unreformed as they quietly return to their pre-crisis market dominance. That’s bad news for competition, innovation, and, most of all, taxpayers, since the Congressional Budget Office has said their $5.1 trillion of mortgage obligations are “effectively guaranteed by the federal government.”

Meanwhile, as several of our witnesses will testify, systemic risk is building yet again. The cost and risk of continuing to do nothing is rising and rising at an alarming rate. Reform, while critical, has proven elusive. For almost 20 years, I along with a handful of reformers like Congressman Ed Royce have labored in vein to replace the GSEs’ government-sanctioned monopoly with a new system based on competitive private capital, innovation, consumer choice, and market discipline.

We passed the PATH Act in the 113th Congress to do just that. I am reintroducing the PATH Act this week, and for no other reason it is the right thing to do and it will let me sleep better at night. Regrettably, its chances for passage remain slim. So as an alternative, I’ve decided to partner with Mr. Delaney on the other side of the aisle to propose a bipartisan compromise housing reform plan that preserves the government guarantee in the secondary mortgage market.

In the time I have remaining in Congress, this is the plan I will pursue.

Our discussion draft, which we will unveil later today, will repeal the GSEs’ charters, permanently ending their monopoly, and transition to a system that allows qualified mortgages backed by an approved private credit enhancer with regulated, diversified capital resources to access the explicit, full government securitization guarantee provided by Ginnie Mae. I believe the plan will preserve much of what is demanded in the current system: liquidity, the TBA market, and the 30-year pre-payable fixed mortgage. And it will do so while dispersing risk and leveling the playing field for all entrants into mortgage finance. Additional details on our proposal will be released later today.

While by no means perfect, we offer this proposal as a grand bargain on how to move past an increasingly dangerous status quo: codify an explicit government MBS guarantee into law, coupled with an accountable and effective affordability program in exchange for placing the taxpayer in a catastrophic loss position only diffusing the credit risk beyond two GSEs, and creating market competition.

If the political will to enact such reform stalls in this Congress or the next, the Administration can and should effectuate change. The President will appoint a new Federal Housing Finance Agency Director in January. The Director has broad, unilateral power as conservator of Fannie and Freddie to dramatically reduce their size, scope, and function. If Congress fails to act by early next year, I call upon the new Director to institute these reforms administratively. The grand bargain I have described does not necessarily represent my preferred policy or optimal policy, but I believe it represents an achievable policy and a good faith effort at bipartisan compromise. A decade without GSE reform has once again put homeowners, taxpayers, and the economy at risk. The time to act is now. With apologies to the rolling stones, “you can’t always get what you want, but if you try some time, you just might find, you get what you need” to avert the next housing crisis.

###

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

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White House Announces Surprise Pick to Head Consumer Financial Protection Bureau

June 19th, 2018 Comments off

WhiteHouseAnnouncessurprisePickHeadconsumerFinancialProtectionBureauCFPBDailyBusinessNewsmHProNews

President Donald J. Trump announced [Monday] his intent to nominate the following individuals to key positions in his Administration,” the White House pressroom tells the Daily Business News.

Dino Falaschetti of Montana, is to be the Director of the Office of Financial Research (OFR), Department of the Treasury.  The White House press room gave his bio as follows.

Mr. Falaschetti was born and raised in Illinois.  He earned a Ph.D. from Washington University in St. Louis, an MBA with high honors from the University of Chicago’s Booth School of Business, and a B.S. with distinction from Indiana University’s Kelley School of Business.  He served as a senior economist in President George W. Bush’s Council of Economic Advisors, and currently serves as chief economist for the House Committee on Financial Services.  Previously, as a professor, he earned tenure in economics and law, as well as a named professorship in finance.  As a business professional, he managed a Fortune 100 corporate finance department, and also served as an expert witness on matters involving governance, accounting, and finance.”

DinoFalschettiChiefEconomistUSCongressionalCommitteeFinancialServicesLinkedInDailyBUsinessnewsMHproNews

House Financial Services Committee Chairman Jeb Hensarling supported the nomination in a separate statement to MHProNews.

As is the case with most post-crisis creations of President Obama and Washington Democrats, the Office of Financial Research has failed to live up to its purported mission. Plagued by reports of inefficiency, poor morale and fiscal irresponsibility, the OFR is in desperate need of new leadership,” Hensarling stated. “Dino’s policy leadership on systemic risk and monetary policy, as well as his professional experiences with financial institutions and executive management in economic research, is exactly what OFR needs to realize its vision of ‘a transparent, efficient, and stable financial system.’ While we will miss his knowledge and expertise, I applaud President Trump for this outstanding pick.”

 

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Oval Office Names Surprise Nominee to Head CFPB

The Los Angeles Times and some other self-proclaimed ‘progressive’ sources suggested that the nomination of Kathy Kraninger was designed to keep Mick Mulvaney on longer at the CFPB.

Some are saying she lacks the qualifications to Head what they say is currently the single most powerful regulatory agency in Washington, D.C.

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But the White House defended the choices, and said as follows in their statement.

Kathleen Laura Kraninger of Ohio, to be Director of the Bureau of Consumer Financial Protection for a term of five years.

Ms. Kraninger currently serves as the Associate Director for General Government at the Office of Management and Budget.  In her current position, Ms. Kraninger oversees $250 billion in budgetary resources for seven cabinet departments and thirty other federal agencies, including the Department of the Treasury, Department of Housing and Urban Development, and the Bureau of Consumer Financial Protection.  Ms. Kraninger started her career in public service as a Peace Corps volunteer.  After the attacks on 9/11, she joined the newly created Department of Homeland Security, and was promoted to Deputy Assistant Secretary for Policy.  Ms. Kraninger also worked in Congress, from 2011 to 2013 on the House Committee on Appropriations, and from 2013 to 2017 on the Senate Committee on Appropriations.  She received a B.A. in political science and education, Phi Beta Kappa, from Marquette University, and a J.D. from Georgetown University.”

JebHensarlingTXRHouseFinancialServicesCommitteeWikipediaDailyBusinessNewsMHproNews

Jeb Hensarling, official photo, chairman of the powerful House Financial Services Committee, R-TX.

Chairman Hensarling weighed in on that nomination too, with the following statement to the Daily Business News.

The Bureau has an important mission to enforce consumer protections laws, and properly designed and led, it is capable of great good. We have seen some of that good under the leadership of Acting Director Mulvaney, and I have no doubt that will continue under the leadership of Kathy Kraninger,” Hensarling said.

I am especially pleased that President Trump nominated an individual with management and budget experience—two qualities that are desperately needed at an agency which has been plagued with cost overruns and unnecessary spending and does not have a full-time and an independent Inspector General. I’m confident that, under Kathy’s leadership, gone are the days of wasting a more than $240 million of taxpayer money to renovate a building it doesn’t even own and paying staff to perform research that has nothing to do with the Bureau’s mission,” Hensarling said, adding, “I look forward to working with Kathy, the Trump Administration and House and Senate Democrats to reform the Bureau into a law enforcement agency that truly protects consumers and is accountable to the people’s elected representatives.”

Mulvaney, as regular MHProNews readers know, has made waves by trimming the power of the CFPB from within.

Inside Scoop Mulvaney-CFPB and MHI, Berkshire Hathaway Company Meeting Detail$

The Trump Administration – not a chest-thumping, posturing trade group in Arlington as some claim – made possible the change to Dodd-Frank that loosened up the MLO rule.  For more details, see the related reports, linked above and below.  ## (News, analysis, and commentary.)

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Note: those who think that the struggles over the enormous powers of the CFPB are over, need to think again. More on that in the days ahead.

Related Reports:

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

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Plot Twist – Duty to Serve – Freddie Mac CEO Layton Called to Accountability w/Congressional, Administration Leaders Over New Manufactured Home Lending Revelations

March 5th, 2018 Comments off

DonaldDonHLaytonCEOPhotoFreddieMacLogoGovtSponsoredEnterpriseDailyBusinessNewsMHProNews.zip

The Duty to Serve (DTS) program for manufactured housing industry retailers, communities and potential home buyers took what may be a problematic twist in news revealed, according to a memo obtained by the Daily Business News.

 

The memo to Donald H. Layton, Chief Executive Officer, Freddie Mac – one of the largest lenders in the nation, cc’d Congressional leaders and Trump Administration officials as follows:

  • Hon. Michael Crapo
  • Hon. Sherrod Brown
  • Hon. Jeb Hensarling
  • Hon. Maxine Waters
  • Hon. Jeff Sessions
  • Hon. Mick Mulvaney
  • Hon. Gary Cohn
  • Hon. Melvin Watt

The memo said that, “At a February 26, 2018 telephone conference meeting of the MHIT, Freddie Mac representative, Ms. Simone Beatty, indicated, for the first time, that Freddie Mac plans to pursue implementation of a “pilot program” — on an expedited basis (i.e., during June and July 2018) — for loans on an undefined “new class” of manufactured homes, apparently based on the exclusionary (i.e., limited to MHI members) / proprietary MHI “new class” of manufactured home research and development activity.”

The MHIT meetings are supposed to be confidential, sources tell MHProNews. 

But when the Daily Business News inquired, how can an important public policy matter like this that impacts thousands of businesses be kept confidential?’ no reasonable response has come forward from any source yet.

Secrecy over DTS regulations defies common sense.  MHProNews has called on the Federal Housing Finance Agency (FHFA), the Government Sponsored Enterprises (GSEs) and the Manufactured Housing Institute (MHI) to produce all minutes from all meetings, for complete transparency in a process that critics say has notably provided Berkshire Hathaway lenders with a windfall every year that the program has been delayed.

 

Per the memo, obtained today by MHProNews, and linked here and here as a download, says in part:

 

“...a participant in Freddie Mac’s “Manufactured Housing Initiative Task Force” (MHIT), has learned that Freddie Mac apparently plans to divert an unspecified portion of its already minimal and wholly inadequate support of the manufactured housing market under DTS to a so-called “new class” of manufactured homes which is currently being researched and developed on an exclusionary, proprietary basis by the Manufactured Housing Institute (MHI), under the direction and authority of a control group comprised, in relevant part, of executives of the industry’s three largest manufacturers.”

As noted, the memo CC’d key Washington leaders, concludes by saying:

For Freddie Mac, after ten years of inaction on DTS, followed by a blatantly inadequate DTS implementation plan, to now even consider diverting any aspect or portion of DTS to a “new class” of proprietary, high-priced, non-affordable manufactured home, is indefensible, inexcusable, in direct defiance of DTS, and unacceptable,” said Mark Weiss, President and CEO of the Manufactured Housing Association for Regulatory Reform (MHARR). Weiss says MHARR will take any and all steps necessary to see that this rerouting of DTS monies won’t go to the controversial, so-called ‘new class’ of manufactured homes.

FHFA Publishes Fannie Mae’s and Freddie Mac’s Underserved Markets Plans for Duty to Serve (DTS) Program

Once more, the link to the full memo is here, or is available here as a downloadable PDF of the document provided. ## (News, analysis, and commentary.)

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Keith Anderson, CEO Champion Homes, MHI ‘New Class’ Monopoly Concerns Memo, ‘Harms Owners, Independents’

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

Manufactured Housing’s “Trojan Horse”

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Is it Judgment Day for the CFPB?

May 24th, 2017 Comments off
IsitJudgmentDayfortheCFPBcreditJournalIE-postedtothedailybusinessnewsmhpronewsmhlivingnews

What is the fate for the CFPB? Credit: Journal IE.

Today is a big day in the history of the Consumer Financial Protection Bureau (CFPB), as it heads to an appeals court in a case brought by PHH Corp.

That case could completely reshape the organization.

As Daily Business News readers are already aware, critics of the CFPB point to leadership structure, data collection and so-called “trophy wins” as issues that need to be addressed. A D.C. Circuit Court ruled that the CFPB was unconstitutional, in the legal action brought by PHH.

The court ruled that the CFPB’s structure was constitutionally flawed and that its director should be removable at the will of the president.

In advance of today’s hearing, the House Financial Services Committee, led by Chairman Jeb Hensarling (R-TX) debated the future of the Financial CHOICE Act during a hearing on April 26th.

Originally introduced by Hensarling in 2016, the CHOICE Act included a proposal to replace the CFPB with a five-member bipartisan commission that would be subject to congressional oversight and appropriations.

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Jeb Hensarling. Credit: House.gov

The Financial CHOICE Act re-establishes this rogue agency as a civil enforcement agency, patterned after the Federal Trade Commission. One that is responsible for actually enforcing the enumerated consumer protection laws written by Congress, instead of making up its own law in an unfair, deceptive, and abusive manner,” said Hensarling.

True consumer protection is only to be had in competitive, transparent and innovative markets which are vigorously policed for fraud and deception. That’s what the Financial CHOICE Act is all about.”

And, both experts and other politicians had their say on the matter at the hearing.

The CFPB is an unaccountable federal agency, as exemplified in the case PHH Corp., et al. v. Consumer Financial Protection Bureau,” said Norbert Michel, senior research fellow, Financial Regulations and Monetary Policy Institute for Economic Freedom and Opportunity at The Heritage Foundation.

CompanyMovesinfortheKillonCFPBcreditFlickrPHHCFPB-postedtothedailybusinessnewsphonewsmhlivingnews

Credits: Flickr, CFPB, PHH.

The PHH incident is a clear-cut case of an unaccountable federal agency flouting the basic principles of the rule of law. Private firms—financial or otherwise—cannot safely operate in such an environment without the expectation of being wrongly persecuted by the government that is supposed to protect all of its citizens from such actions.”

Congress can do even better by consolidating the various consumer financial protection statutes under one existing federal agency, such as the [Federal Trade Commission.]

Another Texas Republican was more to the point.

The CFPB is one of the most unacceptable and unaccountable agencies in the United States,” said Rep. Roger Williams. “This is what Dodd-Frank gave us and that is why it is so important to fix this disastrous law.”

 

A View From the Other Side…

CarsonApprovedbySenateCommitteeProvidesViewonMHcreditSherrodBrownOfficialPhoto-postedtothedailybusinessnewsmhpronewsmhlivingnews

Senator Sherrod Brown. Official photo.

Recent motions filed by U.S. Senator Sherrod Brown (D-Ohio) and U.S. Rep. Maxine Waters (D-Calif.), argued that Congress wanted a single director for the agency, because lawmakers who drafted the Dodd-Frank Act, which established the CFPB,understood that the nation needed a regulator that could respond quickly and effectively to new threats to consumers … and it knew that the CFPB’s effectiveness could be hampered by the delay and gridlock to which commissions are susceptible.”

Sixteen state attorney generals and the District of Columbia also filed a motion, defending the CFPB in its current incarnation.

As the representatives of millions of citizens across the country, the state attorneys general have used their express statutory authority to bring civil actions to enforce consumer financial protection laws and to pursue regulatory actions in coordination with the CFPB to protect consumers against unfair, deceptive and abusive financial practices,” the motion said.

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Representative Maxine Waters. Credit: Wikipedia

The current ruling, if permitted to stand, will undermine the power of the state attorneys general to effectively protect consumers against abuse in the consumer finance industry.” 

 

Could MHI Have Killed the CFPB? Another Opportunity Missed?

As we reported here, prior to the close of filings, MHProNews asked the Manufactured Housing Institute (MHI) if they would be filing an amicus brief in the closely followed PHH vs. CFPB case.

Several operations and organizations have been among those who filed an amicus brief in the case. Was MHI among those organizations?

MHProNews sources say no, and MHI won’t comment.

Why?

Frank Rolfe.

The folks at MHI – the industry lobby group – are nice people, but what’s with the concept of silence is golden? Negative articles on the industry are met with ‘no comment.’ Positive news opportunities are met with ‘no comment.’ I’ve never seen anything like it,” says Frank Rolfe.

When you refuse to talkit looks to the public like an admission of guilt, and when you refuse to promote your product it looks like you are embarrassed by it.”

Silence, according to Rolfe, isn’t golden.

The appearance, per Rolfe, is that someone – in this case, MHI – is hiding something.

 

The View From the MH Industry

GOPSenatorstoPresidentelectTrumpFireCFPBHeadRichardCordraycreditTwitter-postedtothedailybusinessnewsmhpronewsmhlivingnews

A tweet from Senator Bob Sasse.

While the CFPB had the support of the Obama Administration, the Trump Administration has had the organization in its crosshairs since the election.

Those in the industry have not been shy about their feelings on the matter.

The information on this case also has indirect ramifications for the Manufactured Housing Institute (MHI), and others in the industry, as the Preserving Access bill is being floated, which would modify portions of Dodd-Frank.

For more on what the Preserving Access bill means for the industry, check out the latest article on The Masthead.

 

The Daily Business News will continue to follow the hearing and provide updates.

For more on the CFPB’s impact on the manufactured housing industry, click here. ##

 

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RC Williams, MHProNews.

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

 

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Is Time Finally up for the CFPB?

April 27th, 2017 Comments off
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Credits: Pinterest, What the Folly.

Movement by the House Financial Services Committee, led by Chairman Jeb Hensarling (R-TX), could spell the end for the Consumer Financial Protection Bureau as we know it.

According to ACA International, the committee debated the future of the Financial CHOICE Act during a hearing yesterday.

Originally introduced by Hensarling in 2016, the CHOICE Act included a proposal to replace the CFPB with a five-member bipartisan commission that would be subject to congressional oversight and appropriations.

The Financial CHOICE Act re-establishes this rogue agency as a civil enforcement agency, patterned after the Federal Trade Commission. One that is responsible for actually enforcing the enumerated consumer protection laws written by Congress, instead of making up its own law in an unfair, deceptive, and abusive manner,” said Hensarling.

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Jeb Hensarling. Credit: House.gov

True consumer protection is only to be had in competitive, transparent and innovative markets which are vigorously policed for fraud and deception. That’s what the Financial CHOICE Act is all about.”

Recently, Hensarling introduced a 593-page draft of the act, which included a number of revisions. One of them includes changing the name of the CFPB to the Consumer Law Enforcement Agency (CLEA), and a director would lead the agency along with a deputy director, who could be removed at will by the President.

The CLEA would also be required to receive funding through congressional appropriations for the agency.

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Credits: Housingwire, CFPB.

Under the new provisions, President Trump would have the authority to appoint an Inspector General for the organization no later than 60 days after the law takes effect. The inspector general would be required to testify at semi-annual hearings before the House Financial Services and Senate Banking Committees.

In the summary of the draft bill, the stated intention is to “create hope and opportunity for investors, consumers, and entrepreneurs by ending bailouts and ‘Too Big to Fail,’ holding Washington and Wall Street accountable, eliminating red tape to increase access to capital and credit, and repealing the provisions of the Dodd-Frank Act that make America less prosperous, less stable, and less free, and for other purposes.”

For critics of the CHOICE Act, and the dismantling of the CFPB, they see things differently.

CordrayDefiantSaysTrumpWon’tChangeAgencycreditWikipediaMaxineWaters-postedtothedailybusinessnewsmhpronewsmhlivingnews

Representative Maxine Waters. Credit: Wikipedia

A number of law makers, including Rep. Maxine Waters (D-CA), argue that the act would remove consumer, business and investor financial protections and that the CFPB should not be dismantled and replaced with the CLEA.

Rep. Brad Sherman, (D-CA) says that bills included within the act should be voted on separately, with good reason.

These bills will pass this committee overwhelmingly if we consider them separately,” said Sherman.

As Daily Business News readers are aware, critics of the CFPB point to leadership structure, data collection and so-called “trophy wins” as issues that need to be addressed. A D.C. Circuit Court ruled that the CFPB was unconstitutional, in the case legal action brought by PHH.

The court ruled that the CFPB’s structure was constitutionally flawed and that its director should be removable at the will of the president.

CompanyMovesinfortheKillonCFPBcreditFlickrPHHCFPB-postedtothedailybusinessnewsphonewsmhlivingnews

Credits: Flickr, CFPB, PHH.

The CFPB is an unaccountable federal agency, as exemplified in the case PHH Corp., et al. v. Consumer Financial Protection Bureau,” said Norbert Michel, senior research fellow, Financial Regulations and Monetary Policy Institute for Economic Freedom and Opportunity at The Heritage Foundation.

The PHH incident is a clear-cut case of an unaccountable federal agency flouting the basic principles of the rule of law. Private firms—financial or otherwise—cannot safely operate in such an environment without the expectation of being wrongly persecuted by the government that is supposed to protect all of its citizens from such actions.”

Congress can do even better by consolidating the various consumer financial protection statutes under one existing federal agency, such as the [Federal Trade Commission.]”

Another Texas Republican cut straight to the point.

The CFPB is one of the most unacceptable and unaccountable agencies in the United States,” said Rep. Roger Williams. “This is what Dodd-Frank gave us and that is why it is so important to fix this disastrous law.”

According to Bloomberg, a markup for the legislation is reportedly scheduled for May 2.

 

The View From the MH Industry

IDontThinkThereWasEverMuchHighCostLendingInTheManufacturedHousingMarket-stillcreditCSPAN2--RichardCordrayCFPBdirector-Posted-MHLivingNews-com-

Still from an Inside MH video, reflecting how Richard Cordray himself said that there was never much high cost lending in the manufactured housing industry market.

While the CFPB had the support of the Obama Administration, the Trump Administration has had the organization in its crosshairs since the election.

Those in the industry have not been shy about their feelings on the matter.

The information on this case also has indirect ramifications for the Manufactured Housing Institute (MHI), and others in the industry, as the Preserving Access bill is being floated, which would modify portions of Dodd-Frank.

For more on what the Preserving Access bill means for the industry, check out the latest article on The Masthead.

For more on the CFPB’s impact on the manufactured housing industry, click here. ##

 

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

 

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RC Williams, for Daily Business News, MHProNews.

Submitted by RC Williams to the Daily Business News for MHProNews

Senate Passes Bill to Allow MH Purchase with Section 8 Vouchers

July 15th, 2016 Comments off

Manufactured Housing Institute loge-credit-Manufactured Housing Institute-postedDailyBusinessNewsMHProNewsThe Senate has passed H. R. 3700, as the Manufactured Housing Institute (MHI) informs MHProNews, the Housing Opportunity through Modernization Act (HOTMA), which will allow Section 8 vouchers to be used for the purchase of a manufactured home (MH). The House of Representatives passed the legislation in February, and President Obama is expected to sign it into law.

An amendment offered by Representative Peter Welch (D-VT) was added on the House floor—by voice vote– that allows Section 8 not only for the purchase of MH but also for leasing the land, mortgage payments, property tax and insurance.

This change would actually allow families to purchase a home instead of using their Section 8 voucher to rent an apartment. While the measure does not provide any direct funds or require anyone to use a voucher to live in an MH, it gives the 2.1 million Section 8 voucher holders the option to use their voucher to acquire a manufactured home.

The amendment was supported by House Financial Services Committee Chairman Jeb Hensarling (R-TX), and ranking member Maxine Waters (D-CA). The main thrust of H. R. 3700 is to improve the quality of life for public housing residents, cut program costs, encourage work and expand homeownership opportunities.

MHI was a part of a coalition of more than 40 housing and advocacy groups advocating for Senate passage of this legislation, including other manufactured housing professionals, and states it has worked for over a decade urging passage of these reforms. ##

(Image credit:Manufactured Housing Institute)

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

Rep. Hensarling’s Talk will Lay Groundwork for Replacing Dodd-Frank

June 1st, 2016 Comments off

Jeb_Hensarling wikipediaMHProNews has been notified by financialservices.house.gov that House Financial Services Committee Chairman Jeb Hensarling (R-TX), will outline the Republican plan for replacing the Dodd-Frank Act to stimulate economic growth in a speech to the Economic Club of New York on Tuesday, June 7.

The meeting will be held at the Penn Club at 8:00 AM EDT, 30 West 44th St., NYC, and will be open to the press.

For the livestream of Chairman Hensarling’s speech click here. ##

(Photo credit: wikipedia–Rep. Jeb Hensarling)

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

Re-Asserting HUD’s Affordable Housing Mission

November 6th, 2015 Comments off

manufactured-home   archerland2005 back slash FlickrResponding to House Financial Service Chairman Rep. Jeb Hensarling’s (R-TX) request for ideas on addressing poverty and home affordability, MHProNews and ManufacturedHomeLIvingNews publisher L. A. “Tony” Kovach documents HUD’s failure to promote manufactured housing as affordable housing. In Re-inventing HUD’s Role in Quality Affordable Housing, Kovach points out the percentage of people living in poverty is the same as it was when President Lyndon Johnson declared a “War on Poverty” in 1965—but millions more people.

Kovach has interviewed hundreds of homeowners, industry pros and workers on the line since being in the industry since 1981. Using accurate figures (and government ones), he draws a line, from the $1.6 trillion money spent on government programs that have been of questionable value, to how the $50 billion spent on federal housing assistance in 2014 could better be used helping consumers get into manufactured homes. $50 billion equals 671,141 new manufactured homes, using the Census Bureau average cost of $44,500 per home.

Noting the “seemingly endless line for HUD housing program assistance,” and the importance of housing to the economy, Kovach points out the 2014 Government Accounting Office (GAO) report said “manufactured homes are the most cost-effective form of unsubsidized housing in America.

New MH have been documented to withstand hurricanes and be more fire resistant than comparable site-built homes.

Charities and private initiatives are often more effective at helping people out of poverty than governmental programs, but it is private enterprise that promotes true growth and puts jobs in the economy. The rule of thumb in the industry is that each manufactured home produced equals one full-time employee. He says why waste taxpayer money building on-site at a greater expense. It is another government program that needs to be phased out.

Finally, HUD has failed to promote manufactured housing as affordable housing, despite Congress’ directive to do so, and the current administrator’s affirmation that she wants to use modern MH in every possible HUD program.

To link to MHARR’s report on this topic, click here. For MHI’s, click here.##

(Photo credit: archerland2005/Flickr–manufactured home)

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

Sunday Morning Recap-Manufactured Housing Industry News Oct. 25-Nov. 1, 2015

November 1st, 2015 Comments off

mhpronews_sunday_morningWhat’s New in public focused Manufactured HomeLivingNews.com

Keeping the Home Fires from Burning: Fire Safety and the Modern Manufactured Home


Robert Gann, Chet Murphree, Deer Valley Homebuilders, Guin AL – Inside MH Video Tours

What’s New in Manufactured Housing Industry Professional News

Quarter financials spike Cavco’s stock. MHARR, MHI respond to Rep. Hensarling as deadline for comments approaches. One Large Fla. MHC on drawing board, another gets top honors. Co-ops funded by health care provider; software assists co-op management. New York MH official of questionable intent. Carlyle acquires another Bay Area MHC. FEMA MH housing wildfire survivors. Modulars in Dublin, Irish modulars going to Nigeria, new modular hotel in PA. And much, much more news for you to peruse……..

Saturday, Oct. 31

Co-op Residents get Assist from Software to Operate Communities

Friday, Oct. 30

Drop in Pending Home Sales Surprise Analysts

MHI Responds to Rep. Hensarling’s Request

Cavco Spikes 19.15%; MHCV Advances Nearly 10%

Insider Trading at Universal Forest Products, Inc.

Second Nigerian State Pursuing Irish Modular Homes

Cavco’s Net Revenue Jumps Sharply, Gaining 37.8%

Thursday, Oct. 29

Modular Hotel Newly Opened in Pennsylvania

Manufactured Home Community Named Top Retirement Locale in Florida

Patrick Industries Drops Sharply; Skyline Corp. Gains the Most, Again

MH Industry Perturbed by NY State Administrative Agency Position

Cavco to Release Earnings, host Webcast

Large Florida Manufactured Home Community on the Drawing Board

Wednesday, Oct. 28

Dublin Identifies Five Sites for Modular Homes

Sun Communities Reports Q3 Financials

Skyline Spikes 9.03%; Interest Rates Remain Low

Deadline for Comments on HUD Program Rapidly Approaching

50+ FEMA Manufactured Homes are on the Way

Carlyle Acquires another Bay Area Manufactured Home Community

Tuesday, Oct. 27

New Home Sales Drop as other Housing Indices Strengthen

Skyline Erases Gains from Two Days; MHCV drops -2.15 Percent

MHARR White Paper to Jeb Hensarling on HUD

Health Insurance Firm Funds MHC Cooperatives

Sun Communities to Discuss Q3 Earnings

Monday, Oct. 26

Modular Apartments to Replace NYC Tenements

Skyline Outperforms other MH Stocks Two Consecutive Days

Land Lease Community Owner in Canada gets Strong “buy” Rating

Chicago Show offers Low-cost Modular Homes

UMH Issues Series B Preferred Stock

Sunday Morning Recap-Manufactured Housing Industry News Oct. 18-Oct. 25, 2015 ##

(Photo credit: MHProNews)

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

 

MHI Responds to Rep. Hensarling’s Request

October 30th, 2015 Comments off

mhi_logoIn response to a request from House Financial Services Committee Chairman Jeb Hensarling for ideas to address housing affordability and poverty, the Manufactured Housing Institute (MHI) offered constructive suggestions on improving regulations and programs that affect the manufactured home industry.

In addition to shepherding H. R. 650, the Preserving Access to Manufactured Housing Act, through Congress, for which MHI lauded the committee, MHI offers recommendations for FHA to improve its Title 1 and Title 2 loan programs.

Moreover, MHI suggests changes to the Manufactured Housing Construction and Safety Standards Act of 1974, and recommended altering HUD rules to allow a Section 8 voucher to purchase a manufactured home to be sited on leased land. Also, MHI says HUD could do more in placing manufactured homes in a variety of neighborhoods, as the Congressional mandate dictates to achieve HUD’s pledge “to improve lives by creating affordable homes in safe healthy communities of opportunity and by protecting the rights and affirming the values of a diverse society.

To see MHI’s submission, click here.

To see our previous Daily Business News report on Mark Weiss, CEO of the Manufactured Housing Association for Regulatory Reform (MHARR), response to Congress on this same topic, click here.##

(Image credit: Manufactured Housing Institute)

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