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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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“Warren Buffet’s Exploitative Mobile Home Investment” Kori Hale in Forbes Rips Clayton Homes, Berkshire Hathaway’s Predatory Manufactured Home Practices

April 18th, 2019 Comments off

 

WarrenBuffettsExplotativeMobileHomeInvestmentKoriHaleInForbesRipsClaytonHoemsBerkshireHthawayredatorManufacturedHomePracticesMHProNews

Starting with the featured image, which may have been provided by a Forbes staffer, and moving on to terminology errors, it must be noted that Kori Hale’s allegations against Warren Buffett led Berkshire Hathaway’s Clayton Homes and related lending units includes inaccuracies.  But that doesn’t mitigate the fact that the thrust of Hale’s comments are devastating, especially coming from the black-female CEO of CultureBanx.

 

Here is the link to her column on Forbes, entitled Warren Buffet’s Exploitative Mobile Home Investment, which is being reproduced below under fair use guidelines for commentary and analysis.

 

Warren Buffett’s Exploitative Mobile Home Investment

Kori Hale Forbes Contributor – I’m the CEO of CultureBanx, redefining business news for minorities.

 

TWEET THIS

Warren Buffett’s company Clayton Homes, the biggest mobile home manufacturer in the U.S. has continued to profit from high interest rate loans. The Oracle of Omaha has sold low-income Americans the dream of ownership for nearly 20 years, and his investment company Berkshire Hathaway makes money on the loans, since they own the company that Clayton urges its buyers to go through. Many of the people buying these homes are minorities and have helped to fuel Clayton’s $13.7 billion mortgage portfolio.

 

The Breakdown You Need to Know

Clayton operates the two biggest mobile home lenders, 21st Mortgage Corporation along with Vanderbilt Mortgage. Clayton finances more mobile home loans than any other lender by a factor of more than seven. CultureBanx noted that in 2105, 72% of black borrowers got their loans from Clayton’s Vanderbilt Mortgage and 21st Mortgage, according to FFEI federal data.

They have outsized dominance in the manufactured home market with a 49% share, and where profit margins are greater. Buffet’s Clayton company brought in $765 million in revenue, in 2017.

Mobile home loans are similar to car loans because they’re typically classified as personal property, instead of real estate. Interest rates can be as high as 13.5% or more, and like a vehicle, lose as much as half its value in three years. These rates make it hard for mobile-home owners to leverage equity from their purchase in order to buy a traditional home.

Capitalizing on Trailer Debt

Families who are able to get a loan for their mobile homes generally lease the land on which it sits, a common practice in this industry that can trap people in a cycle of debt. The national monthly average to rent a space in a trailer park is around $250 and can be as high as $600. Trailer parks tend to be built in warmer climates, with Mississippi and Alabama having some of the highest rates of mobile homeownership.

If you’re thinking mobile homes are perhaps only for an older demographic you would be wrong. The majority of mobile-home residents, 23% are between the ages of 18 to 29 and have an average household income of $28,400. If that’s not alarming enough, in 2015, the average sales price for a new manufactured double-wide home was around $110,000.

There are some mobile home communities attempting to rezone trailer parks, to prevent owners from selling the land to developers that may raise the rent even higher. If residents are able to pool their resources together and buy the park, it would give them the opportunity to run it as a co-op.

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Once more, the point of sharing this Forbes column to MHProNews readers isn’t to confirm, challenge, or corroborate this or that claim made by Hale’s, the author of the above published Op-Ed this morning.  Rather, it is to raise the related point that is often at the core of the industry’s image challenges.

The bad news that often harms the industry’s image routinely comes from Manufactured Housing Institute (MHI) connected firms, the largest of which is Clayton Homes, and their Berkshire Hathaway related lending and other brands.  consider this Google search screen capture, done this morning.

 

ClaytonHomesMobileHomeFinancingNewsHeadlinesDailyBusinessNewsMHProNews765

 

The first steps to organize independents into a new post-production trade group are underway.  To learn more contact us in confidence via the link here.  Use the words New Association Inquiry in the subject line.

See the related reports to learn more, found further below the byline, offers, and notices. That’s another episode of manufactured housing “Industry News, Tips, and Views Pros Can Use© where “We Provide, You Decide.” © ## (News, analysis, and commentary.)

 

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To report a news tip, click the image above or send an email to iReportMHNewsTips@mhmsm.com – To help us spot your message in our volume of email, please put the words NEWS TIP in the subject line.

NOTICE: You can get our ‘read-hot’ industry-leading emailed headline news updates, at this link here. You can join the scores who follow us on Twitter at this link. Connect on LinkedIn here.

NOTICE 2: Readers have periodically reported that they are getting a better experience when reading MHProNews on the Microsoft Edge, or Apple Safari browser than with Google’s Chrome browser. Chrome reportedly manipulates the content of a page more than the other two browsers do.

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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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Machiavellian “Godfather” – Sam Zell, Warren Buffett, Capital, Lending and Crossed Lines in Manufactured Housing

November 17th, 2018 Comments off

 

MachiavellianGodfatherSamZellWarrenBuffettCaptilLendingCrossedLinesManufacturedHousingDailyBusinessNewsMHProNews

Keep your friends close,

and your enemies closer.”

 

This [saying] has frequently been ascribed to Sun Tzu and once in a while to Niccolò Machiavelli or Petrarch,” says Edwar Louk in Quorayet there are no distributed sources saying which was its origin before its utilization by “Michael Corleone” in The Godfather Part II (1974), composed by Mario Puzo and Francis Ford Coppola: “My dad taught me numerous things here — he educated me in this room. He trained me — hold your friends close but your enemies closer.”

 

There’s a well known U.S. affordable housing crisis. Lawrence Yun at the National Association of Realtors said earlier this year that only builders getting really busy will close the gap, which he estimated at the time as 8.3 million housing units.  A number of tech gurus have said that only factory-home building can close that housing construction needs gap.

Several sources cited at the end of this report are from outside of the manufactured housing industry.  They have said, after researching the matter, that modern manufactured homes (MH) are an obvious part of the solution for the affordable housing crisis.  They include, but are not limited to:

  • The National Association of Realtors,
  • the Urban Institute,
  • Bloomberg,
  • Fannie Mae,
  • Freddie Mac,
  • Value Penguin,
  • HUD Secretary Ben Carson,

and others are among those in 2018 that have praised the quality, surprising safety, and value of today’s manufactured homes.

Yet the manufactured housing industry struggles in its actual performance, in bottom-line new-home sales. Why?

The reasons are many, such as

  • placement/zoning,
  • media/image,
  • regulatory and more.
  • But let’s focus for the next few minutes on access to capital and financing.

There are few in manufactured housing who can as credibly claim to understand the import and legal methods of raising capital as Equity LifeStyle Properties (ELS) Chairman Sam Zell.

Zell has numerous other business interests.  He is worth billions.  He’s been quoted saying he is happy to be correct 60 or 70 percent of the time. Billionaire Warren Buffett has famously been critiqued – and admitted on occasion – to making mistakes or missing opportunities too. Not to worry, because the baseball slugger who consistently bats .350 or better is worth millions annually.  Thankfully, no one has to bat a 1,000 to be successful.

So perfection isn’t the standard in business or investing. Consistency, overall performance, quality, profitability, legality – and hopefully ethics are, or should be – the standards. Toyota recently recalled 192,000 Prius vehicles in the U.S. alone.  Pay attention, because that won’t cause much of a hiccup for sales by Toyota.  So why, by contrast, does bad news so routinely harm manufactured homes so much more?

 

Stating the Obvious Brings Clarity

It bears stating the obvious. Manufactured housing is made up of a myriad of interrelated and specialized interests. They include, but are not necessarily limited to:

  • the production of manufactured homes,
  • the sale of manufactured homes,
  • the transportation and installation of manufactured homes,
  • land-lease manufactured home communities,
  • financing of manufactured homes (wholesale inventory and retail sales),
  • due diligence firms,
  • legal, accounting, HR, and compliance experts,
  • associations,
  • and the list goes on.

Furthermore, the manufactured home (MH) industry can be segmented into corporate giants, mid-level, smaller or even ‘mom and pop‘ sized enterprises.

Zell’s and Buffett’s interests in the MH Industry have both been represented on the Manufactured Housing Institute (MHI) Executive Committee level for years.  That’s where the power is at the MHI trade association.

The two moguls each know how to attract media when they want it. But given all that, it should not be construed to mean that Buffett or Zell’s interests are always in synch.

Nor are Buffett’s and Zell’s politics apparently in alignment.

 

 

ZellSamuelOpenSecretsCampaignContributions2018ManufacturedHousingIndustryDailyBuisnessNewsMHProNews

According to Open Secrets, which relies on public records, Sam Zell gave 100 percent to Republican candidates up to the 2018 reporting period reflected in the graphic, shown above. By contrast, Warren Buffett gave 100 percent of his campaign contributions to Democratic ones, as the image below demonstrates.

WarrenBuffettMarketWatchGivingIn2018CampaignDemocrats

 

Keep you friends close, and your enemies closer. With that backdrop, it is useful for manufactured home professionals to glance at the concept of interlocking directorates.

 

InterlockingDirectoratesGraphicExampleManufacturedHousingIndustryDailyBusinessNewsMHProNews

 

Business Dictionary defines ‘interlocking directorates’ thus, “Membership on the boards of directors of two or more firms by the same individual. It is normally legal except where the firms are mutual competitors, but is usually considered undesirable because it allows firms to exchange non-public (privileged) information and, therefore, may hinder fair competition.”

 

InterlockingDirectoratesDefinedDailyBusinessNewsMHproNews

 

Note that their definition is perhaps a bit legalistic. It’s because there are subtle ways that interconnected operations can influence other:

  • companies,
  • nonprofits,
  • foundations,
  • political organizations,
  • or governmental agencies,

which can then be wielded in a dynamically similar way as interlocking directorates operate.  As a reminder, here are MHI’s antitrust guidelines, and note the highlighted portions.

 

Interlocking Directorates

What perhaps too few in the trenches of manufactured housing grasp are how influence, information, and even power can be wielded by means of connections that are technically public, but if unreported or ignored, are effectively invisible. That isn’t a conspiracy, and it can be done in legal or illicit ways, as the prior definition, link to MHI’s antitrust guidelines, and graphics above itself suggests.

Those like Zell grasp this reality well, per our industry sources.

But that doesn’t mean that elites and/or their field leaders can also be blindsided by revelations such as Buffett’s obliquely funding activist protest groups, such as via the Tides Foundation, which in turn funds:

 

NovoFoundationWarrenBuffettTidesFoundationFundsMHActionManufacturedHousingIndustryDailyBusinessNewsMHProNews

 

Those bulleted activist groups are politically leftist, democratic socialist, or Democratic party in orientation. It’s what Buffett lieutenant Tim Williams, President and CEO of 21st Mortgage, a Berkshire-brand lender in manufactured housing, called aprogressive” “threat” that challenged manufactured housing. Yet Williams himself, per our sources, has personally contributed to progressive candidates, and via Political Action Committees (PACs), to several others.  We’re in football season, so can you spell, ‘head fake?’

Bluntly rephrased, Buffett has funded through various channels radical and leftist organizations that have deliberately targeted Zell’s ELS brand.

Let that sink in.

And if you are Sun Communities, UMH Properties, or any other sized manufactured home community or other MH operation, ponder this question. If Buffett’s money was used to target Zell, why wouldn’t they your or any other firm too?

 

WarrenBuffettGeorgeSorosPhotosHUDSecBenCarsonTidesFoundationLogoMHActionLogoMHActionProtestorPhotoManufacturedHousingIndustryMHProNews600

Warren Buffett has been funding leftist and Democratic causes and candidates for years. Among them are MHAction, which targeted via protest and mainstream media, ELS, among others in the industry. MHAction – which again benefited from cash that flowed from Buffett – also disrupted the address by HUD Secretary Ben Carson in Las Vegas last April.

 

Furthermore, Buffett’s Berkshire brand Clayton – per sources – has purportedly paid one or more writers who have spotlighted speaker/authors like Esther Sullivan. Professor Sullivan presents a mishmash of pro- and anti-manufactured home positions, most notably negative with regard the owners of certain manufactured home communities.

That’s not to say that only ELS has been targeted by progressive groups interconnected to Buffett’s financial largess. So have:

  • Frank Rolfe of MHPFunds/RV Horizons and his partners,
  • Blackstone – which entered manufactured home communities this year – and other community owners have been targeted by groups that were funded by sources that were given millions from Buffett’s coffers.
  • It’s not speculation, because there’s a public record and a money trail.

MHAction, MoveOn, The Indivisible Project, AntiFa are among those that have also targeted HUD Secretary Carson, others in the Trump Administration, including protests of President Donald J. Trump himself.  Battle lines are being drawn by Buffett on the political left and people like Zell who favor more pro-business policies, like those of the GOP and it’s disruptive 45th president.

 

WarrenBuffettBillClintonHillaryClintonBarackObamaKevinClaytonNathanSmithPhotosDailyBusinessNewsMHproNews600

 

A Surprising Discovery

MHAction directly and indirectly revealed to MHProNews their lack of interest in ‘small fish‘ like manufactured home community professionals, George Allen, Spencer Roane, Tom Lackey and SECO. Those three and their ‘education’ all have ties to business tactics that led the Chattanooga Times Free Press and other media to spotlight allegedly illegal activities that harmed numerous consumers. Per mainstream media and other sources to MHProNews, various public officials in Georgia and elsewhere are reportedly investigating those concerns.

 

TonyaEvansLost16000InvestedInHomeSheSaysPurchasedfromTomLackeyStoneyPointeMobileHomeParkManufacturedHousingIndustryNewsMHProNEws

If MHAction cared so deeply about ‘victims’ of ‘predatory companies,’ where were they on this issue? MHProNews knows from multiple sources that MHAction was aware of these events, but opted not to act on behalf of those residents. Learn more, linked here.

 

Put differently, there is an open question as to what motivated and directs MHAction or others, to target Zell, Rolfe and Blackstone instead of others like the example noted in the report about Lackey and company, which are linked from the image above and below.

 

TomLackeyPhotoGeorgeAllenphotoSpencerRoanePhotoMHVillageLogoMHIDailyBusinessNewsMHProNews

Click here to learn more. If the pro-manufactured home industry’s trade media doesn’t police its own, then mainstream media and public officials will eventually do it instead. Accountability is a traditional role for any industry’s good trade media.  Click here to learn more about the troubling tales about Lackey, Roane, and Allen.

 

If MHAction and their allies are posturing as fighting for the ‘little guy’ who leases a site from an alleged problem operator, why did MHAction or other resident groups effectively ignore defending the purported victims of Tom Lackey? After all, various public accounts, and governmental investigations, claim and are investigating Lackey and his defenders/promoters shown above as potentially guilty of serious criminal and civil offenses.  Of course, like Buffett or anyone else, they are deemed innocent in the eyes of the law, until they plead or are proven guilty in a court of law.

So why does MHAction go after firm’s like Zell’s instead?

That’s not to suggest that Ken Borden at MHAction gets a call from Warren Buffett – that’s unlikely and unnecessary. All that billionaire Buffett has to know is that his money went to the Tides Foundation, and trusting the Tides’ track record would be enough for him. See what Buffett says in his own words, further below, about not-micromanaging. Then someone like Borden will be identified and selected, and they will know what to do, and not do.

 

PavingTheRoadToHellMHActionKevinBordenNYCCJonathanWestinDailyBusinessNewsMHProNews

Facts are facts. Borden and leftist NY Communities for Change, an offshoot of the now defunct, and scandal plagued ACORN, targeted ELS communities that were reportedly well run and operated within the law. By contrast, MHAction ignored Tom Lackey, George Allen, Spencer Roane and their colleagues. An on-the-ground source told MHProNews that Lackey’s community was “a slum.” Which begs the question. Is MHAction and other like organizations funded by Tides the strong arm tactics of the political left? Are they part of a shakedown, worthy of a RICO and other investigations by state or federal authorities? Legal sources have suggested precisely that could be true. For more on Borden, and MHAction, see “Paving the Road to Hell,” at this link.

 

Why This Matters to Firms of All Sizes in Manufactured Housing

Companies of all sizes in manufactured housing routinely need access to capital and financing.

Every sized operation is impacted by the industry’s stigma, which Clayton Homes and MHI posture at addressing, but have arguably clearly failed at fixing. The evidence? New HUD Code home sales statistics are a stark reminder.

 

ManufacturedHousingInstituteLogoMHILogoSept2018MonthlyEconomicReportDailyBusinessNewsMHProNews (1)

From a report on MHLivingNews.com, which spotlights an article by Lending Tree that is superior to most anything that MHI has produced to ‘promote’ manufactured housing. See that Lending Tree statement – very favorable to manufactured homes – at this link here.

 

It’s the facts – performance – that is the baseline reminder that MHI and Clayton ‘leadership” have failed the industry’s independents.

Marty Lavin, an attorney, MHI award-winner, and long-time finance, community and retail success said that MHI works for the interests of the “big boys.” The interests of other sized firms are only protected to the extent they align with the biggest boys on the MH block, said Lavin. That would arguably be Warren Buffett, Berkshire Hathaway, and their firms that operate in manufactured housing such as 21st Mortgage or Clayton Homes.

  • fact checks,
  • following the evidence,
  • following the Money,
  • following the performance vs. the words and deeds of MHI and others reveals this to be a logical Occam’s Razor reality.

Manufactured home operation of the small- to mid-range sizes were allowed to struggle, fail, or are acquired in part due to capital constraints. MHI failed them, in favor of a mega-billionaire. Who says? Among others, more MH industry award winners, like retailers Bob Crawford, or Alan Amy.

 

 

Zell warned how limiting capital access was a weakness for the industry, as the exclusive quotes below to MHProNews via the late Howard Walker – then ELS Vice Chairman – reflect.

 

 

MHI’s Former President Said…

MHI’s prior president, Chris Stinebert also warned the industry in a parting published message.  That’s found in a column in the Journal that was arguably a thinly-veiled warning to manufactured housing professionals.  Stinebert’s article could be read as a parting slap at MHI.

Every industry professional in the manufactured housing is directly or indirectly impacted by these factors MHI’s former president noted. Restricting financing limits sales, which harms affordable home ownership.  Note, one need not agree with Stinebert’s suggested cure to his point #4 to realize that he felt that there were problems with lending and capital access that needed to be addressed.

Not long after Stinebert exited MHI, the industry was about to be hit by the 2008 housing/finance meltdown in a way thousands of industry professionals did not anticipate.

 

A Smoking Gun…

Money trails are used by prosecutors and civil attorneys, say legal experts to MHProNews, to demonstrate what could be patterns of behavior. FBI officials have previously told the Daily Business News on MHProNews that a significant number of special agents are versed in accounting and other forms of business and financial expertise.  That’s precisely done so they can spot and find schemes that can be charged in court with various kinds of “white collar” illegal behavior.

Harvard’s Eric Belsky believed circa 2002 that manufactured housing would dominate conventional housing by 2010. Belsky knew about the repossession glut related to Conseco, Greentree or other now defunct MH lenders. Belsky still believed manufactured housing would not only recover, but would dominate.

Had Harvard’s expert been correct, the nation could have saved tens of billions annually. Furthermore, per research outlined on Value Penguin, the U.S. could gain $2 trillion annually in gross domestic product – impact similar to the Trump Administration regulatory roll backs or the 2017 tax cuts – if the affordable housing crisis was properly addressed.  And using manufactured homes, that could be done simply by enforcing existing laws.  No new legislation is needed. No need for years of debate.  Just enforce the law.

 

How did Belsky miss his estimates about the future of manufactured homes?

Because he failed to anticipate that Buffett’s Berkshire Hathaway would buy Clayton Homes in 2003. That same year, Berkshire bought and rolled Oakwood Homes into Clayton, and would create via acquisitions the largest operation in manufactured housing.

Among those units acquired was 21st Mortgage Corp.  But let’s look for the next few moments at the 2008 housing/finance crisis.

During the calamity of the aftermath of 2008, an independent manufactured home producer then told MHProNews what 21st was about to do. But it wasn’t until recently that an actual document – a purported “smoking gun” from 21st’s Tim Williams to independent retailers was actually obtained. The document, shown further below, explained why 21st would only be cutting financing support to non-Clayton Homes manufactured housing carrying independents.

During a crisis, when people are desperately trying to swim for shore, details can often get lost in the fog of panic and pressure.

Thus, some issues only come into focus after a crisis – like the 2008 housing/mortgage meltdown – has come and gone.

When the Urban Institute or others study the manufactured home industry, and they ask why manufactured home sales are at such relatively low ebb, the 21st document, quotes from Buffett, and the videos that follow ought to be among the top exhibits examined.  So how did the Urban Institute – which also gets funded by Buffett, and where he is a life-time trustee – miss all three elements?

When federal officials, investors, and others wonder why manufactured homes haven’t done better, given the affordable housing crisis, these are important starting points for a clear understanding.

And when independent manufactured home retailers are wondering about the future – as which supplier(s) and service providers they should use – an adage ought to be applied.  Namely, that a reasonable predictor of future behavior is past behavior.

21stMortgageCorpLogoLetterheadJan302009TimWilliamsRetailersBrokersCutSpecifiedLendingMonopolisticPloyConcernManufacturedHomeDailyBusinessNewsMHProNews

This document was provided as a news tip to MHProNews. To see the PDF of this document, click here or above.

 

The result was predictable. As a former Clayton manager, Ken Corbin publicly said, some 10,000 independent manufactured home retailers vanished. That bold move reflected by the 21st Mortgage document obviously harmed those independent retailers.  But it also hurt:

  • manufactured home communities, that for years relied upon retailers to sell homes into their communities.
  • independent manufactured home producers, which MHI’s own records reflect – see below – fell in numbers following the impact of the 21st document above, which Tim Williams signed.
  • several independent transport, installation, suppliers and others were lost or absorbed by larger firms, as the consequences mounted.

 

 

What’s often missed is that not long after that letter that Williams claimed 21st regrettably had ‘no choice,’ Kevin Clayton was bragging in the video below that “Warren” told him that they had “plenty of money.”

But perhaps the strongest example of how misleading the 21st document from Tim Williams arguably is comes from quotes from Warren Buffett’s own annual letter. Like the Clayton interview video included in this report, Buffett’s own words make it clear that Berkshire could have continued funding 21st, and thus, the industry’s independents.

Instead, they collectively killed off thousands of independent firms, purportedly by pulling the financing – the access to capital – that ELS’ Zell or Harvard’s Belsky both said are so necessary.

EricBelksyManufacturedHousingIndustryManufacuredHomeManufacturedHousingInstituteResearchDataAffordbleHousingMHProNewsDailyBuisnessNews575

Why did Belsky miss his predicted date? Because it came before Buffett’s entry into MH? Note that MHI, Tim Williams/21st and Clayton have all been asked to address these concerns.  At no time have they even tried to explain it, though previous to such inquiries they would give prompt replies to this trade media outlet.  How is that to be explained?

 

Quotes from Buffett’s Letter

Our gain in net worth during 2009 was $21.8 billion, which increased the per-share book value of both our Class A and Class B stock by 19.8%. Over the last 45 years (that is, since present management took over) book value has grown from $19 to $84,487, a rate of 20.3% compounded annually,” said Warren Buffett, Chairman of Berkshire Hathaway, in his 2009 annual letter to shareholders.

Here are a few examples of how we apply Charlie’s [Munger, Berkshire Vice-Chairman] thinking at Berkshire: Charlie and I avoid businesses whose futures we can’t evaluate.”

In manufactured housing, that meant that Buffett and Munger had no doubt about the future of the industry. Investors, take note.

When the financial system went into cardiac arrest in September 2008, Berkshire was a supplier of liquidity and capital to the system, not a supplicant. At the very peak of the crisis, we poured $15.5 billion into a business world that could otherwise look only to the federal government for help,” said that same 2009 annual letter.

What did that mean for manufactured housing professionals? Simply this. That the 21st Mortgage Corporation letter to independent retailers includes claims that were at best mistaken, misleading – or even false – assertions.

Berkshire made billions that year. Buffett’s conglomerate lent billions that year, his letter said. Yet, 21st had the chutzpah to claim they couldn’t lend to manufactured housing retailers that didn’t carry Clayton Homes product? 

To better grasp the principles of how and why this was done, one must understand Buffett’s concept of the ‘strategic moat.’  The short video below explains part of it, in Buffett’s own words.

 

 

Lines were arguably crossed, or perhaps the better prose is ‘double crossed.’ While Kevin Clayton smiles in the video that follows, as he says how much Clayton valued independent retailers, what they collectively did to independents fails to match those sweet-sounding words.

 

 

Applying MHI award-winner, Marty Lavin’s mantras, “pay more attention to what people do than to what they say,” and “follow the money.”

That debatable double-cross may be why Zell stays in MHI, to – ala the mantra at top – to “keep your friends close, and your enemies closer.”

 

More from the Oracle of Omaha…

What Buffett Said – Who’s Responsible?

We tend to let our many subsidiaries operate on their own, without our supervising and monitoring them to any degree…Most of our managers, however, use the independence we grant them magnificently, rewarding our confidence by maintaining an owner-oriented attitude that is invaluable and too seldom found in huge organizations,” said Buffett that year.

But it should also be recalled that Buffett preaches about ‘widening the moat.’   See all of the Buffett videos on the key Kevin Clayton videos on the page, linked here, or watch the videos posted on this page.  Clayton talks about ‘widening the moat’ and besting competitors repeatedly in the video. 

Buffett referenced this from his 2008 annual letter, “We are certain, for example, that the economy will be in shambles throughout 2009 – and probably well beyond – but that conclusion does not tell us whether the market will rise or fall.”  He chastised many in media for sensationalism, adding: “Any investors who were misled by the sensationalists paid a big price: The Dow closed the day of the letter at 7,063 and finished the year at 10,428.”

Skipping deeper into that 2009 Buffet annual letter to Berkshire shareholders, we find the section that deals with Clayton Homes, and manufactured housing.  Note that the graphics shown are by MHProNews, but reflect data from Berkshire or others sources, as shown.

ClaytonHomesOakwoodHomesBerkshireHathawayMarketShareofManufacturedHousingEndof2003DailyBuisnessNewsMHanufacturedHousingIndustryProNews

“Finance and Financial Products

Our largest operation in this sector is Clayton Homes, the country’s leading producer of modular and manufactured homes. Clayton was not always number one: A decade ago the three leading manufacturers were Fleetwood, Champion and Oakwood, which together accounted for 44% of the output of the industry. All have since gone bankrupt. Total industry output, meanwhile, has fallen from 382,000 units in 1999 to 60,000 units in 2009.”

By the way, the industry shipped 372,000+ in 1998 – not 1999. And in 2009, the total shipments were under 50,000 homes  So, that last sentence above by Buffett has two apparent fact errors.

Figure1MobileManufacturedHomeSalesSHipmentsVsExistingingNewHouseSalesManufacturedHousingiinudstryDataMHProNews

From the National Association of Realtors.  There are a growing number of industry voices that believe that BH/CMH and MHI have by various action/inaction has kept manufactured home sales at historically low levels. The evidence is found herein and are also linked from Related Reports, further below.

 

 

The collapse of so many companies in manufactured housing has several causes, including, but not limited to, the image issues fostered by groups like MHAction. 

But cutting off capital – in the form of lending – has to be high on the list, if not on top.  High rents, high conventional housing costs, these are historic reasons for strong performance for manufactured homes. So how could MHI’s president, in the video above, say with a straight face that the industry must accept slow growth?

 

ClaytonHomesBerkshireHathawayMarketShareofManufacturedHousingEndof2011DailyBuisnessNewsMHanufacturedHousingIndustryProNews

 

The market share graphics, based upon various industry reports and sources as shown, tells the tale of how Clayton used ‘the moat‘ of financing and other tools to rapidly increase their market share.  Note that doing so arguably shrank the overall market, as it increased their market share.

 

ClaytonHomesBerkshireHathawayMarketShareofManufacturedHousingEndof2017DailyBuisnessNewsMHanufacturedHousingIndustryProNews

 

 

But because of MHI’s problematic track record, which even their former chairman Nathan Smith (above) and MHI member Frank Rolfe (below) in the videos above and below, the trends shown herein advanced.

 

ClaytonHomesSkylineChampionCavcoIndustriesMarketShareManufacturedHousingIndustryConsolidationGraphicPieChartMHProNews-e1528746976415

FrankRolfeNegativeArticlesOnIndustryNoCommentbyManufacturedHousingInstituteMHIRVHorizonsMobleHomeUniversityPostedDailyBusinessNewsMHProNews-575x132

 

 

Evidence that it isn’t just coincidence or some other mystery is found in the RV Industry’s performance during the past 2 decades. Compare their trends to that of manufactured housing during those same years.

 

RVsshipmentsTrailedMH1998WinnebagoDailyBusinessNewsMHProNews

 

That’s arguably among the reasons why industry voices, such as the Manufactured Housing Association for Regulatory Reform (MHARR) – which focuses on federal production-related issues – has encouraged the industry’s post-production sector to organize a new post-production association.  Because MHI has failed the bulk of the industry for years.

 

MHARR Releases Study Recommending Independent Collective Representation for Post-Production Sector

 

Some in the communities side of the industry have begun to do just that, namely, create a new national MH communities group. And purportedly Berkshire-dominated MHI, not surprisingly, attacked that new communities trade group which publicly explained why they left MHI in the first place.

 

Nathan Smith, SSK Communities, and Manufactured Housing Institute (MHI) Slam New National Manufactured Home Communities Group in Written Statement

 

The industry’s independents have witnessed thousands of firms driven out of business, or that sold out to others for less than their true value. That in turn hurts housing affordability, and thus, the nation.

It was apparently done for the sake of billions of dollars, and to grow Berkshire’s strategic moat in manufactured housing.  It’s demonstrably cost Americans trillions, using the logic of two NBER researchers.

That manufactured housing is a proven solution to the affordable housing crisis – one that is hiding in plain sight – is clear to any open-mind researcher. Manufactured homes have enjoyed political support across the left-right political divide.

 

InfographicMobileManufacturedHomeManufacturedHousingIndustryFactsDataResearchMobileManufacturedHomeLivingNews

 

But “Moat” building Warren Buffett and his minions in MHVille have debatably strangled the industry for years, costing numerous independent businesses millions per location. That monopolistic ploy in turn, for reasons previously linked, has cost Americans trillions in lost GDP.

Is MHAction, MoveOn, et al – and cutting off access to capital, while supporting candidates that support regulations that kill off small businesses – all part of Buffett’s Moat strategy?

 

WarrenBuffettTheMoatQuoteMemeManufacturedHousingIndustryDailyBusinessNEwsMHProNEws

 

The Nation, The Atlantic, GuruFocus, The Seattle Times and others have looked at various aspects of these issues, and on various aspects of the matter, they seem to think so.

But so far, only MHProNews has connected-the-dots across the left-right media divide that linked:

  • Tim Williams/21st “Smoking Gun” Letter,
  • Kevin Clayton video, where Clayton explains how “Warren” uses the Moat, nonprofits and foundations,
  • Buffett’s own annual letter,
  • to the logically avoidable collapse of thousands of manufactured home firms,
  • and now, the way that activist groups such as MHAction has harmed the industry’s image through protests and media coverage.

To date, no one else so far in mainstream media has published the details which are so Machiavellian. Or for those who love gangster movies, it’s a dramatic yet tragic scene that could come out of “The Godfather” series. If Alan Amy in the video above and others in MHVille  are right, Buffett’s lieutenants in MHVille want to “make you an offer that you can’t refuse.”

We’re told by thoughtful attorneys that RICO and antitrust issues are among the concerns they see.

It’s past time for:

  • a law-and-order minded Trump Administration,
  • state attorney generals,
  • private businesses,
  • and specialized civil attorneys,
  • to rise up and stop a corrupt ‘hiding in plain sight’ scheme.

Ending that’s monopolistic “Moat” could revive manufactured homes, and would be part of the affordable housing solutions that would collectively yield to Americans trillions of dollars.

For more details, see the related reports, above and below. “We Provide, You Decide.” © ## (News, Commentary, and analysis.).

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

LATonyKovachGoodBipartisanshipShouldalwaysBepredicatedBenefitallhonestindustrymembersnotslectfewquoteBy L.A. “Tony” Kovach – for MHProNews.com.

Tony is the multiple award-winning managing member of LifeStyle Factory Homes, LLC, the parent company to MHProNews, and MHLivingNews.com.

Office 863-213-4090 |Connect on LinkedIn:
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Related References:

Seattle Times -Federal Investigations-Berkshire Hathaway’s Clayton Homes, GuruFocus Spotlights Buffett’s Clayton’s “Unethical,” Monopolistic Moat

Affordable Housing, the Visible, Yet Mysterious Struggle for an Obvious Solution, Case Examples

Realtor University, Journal for the Center of Real Estate Studies, Makes Corrections– “The Market for Manufactured Homes,” by Scholastica ‘Gay’ Cororaton, CBE

Urban Institute Ask for Correction in Analysis of their Manufactured Housing Research, “Follow the Facts,” “Follow the Money”

Bloomberg “New Home for $90,000? Manufactured Housing Is Making a Comeback” Reveals MH Media Challenge

Due Credit, Warren Buffett, Media, and Manufactured Housing’s Historic Achievement

MostMenAppearnNeverConsideredWhatHouseIsNeedlesslyPoorAllTheirLivesHenryDavidThoreauManufacturedHomeLivingNews

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

 

 

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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Related Reports:

Rising Prices and Rates Cool Housing Sales, MH Industry Pro Sounds Off, New Data & Video

Warren Buffett Would be Okay With Clayton Homes Losing Money, Says Kevin Clayton – But Why?

 

 

Canadian and American Financial and Banking Systems Compared, Infographic

May 16th, 2018 Comments off

CanadaUSTaleofTwoBankingSectorsVIsualCapitalistLogoManufacturedHousingIndustryDailyBusinessNewsMHProNews

The Daily Business News reports every day on Canadian based companies as well as U.S. based firms in our evening market report.  But it’s been a while since we’ve taken a broader look at the Canadian market, or done a comparison with how U.S. and Canada are similar and differ.

 

So, the following interesting Visual Capitalist infographic is a step toward providing a look at life north of the longest peaceful border on planet earth.

As is widely known, Canada avoided much of the turbulence that was experienced in the U.S. during the run up to and since the 2008 mortgage/housing crisis.  But like the U.S., affordable housing is an issue north of the border.

Manufactured housing regrettably experiences resistance on either side of the 49th parallel.

Against that backdrop, per RBC Global Asset Management and VC:

General Differences:

Historically, the Canadian banking system favors a limited quantity of banks, and many branches. It also carries the British influence of valuing stability over experimentation. Meanwhile, U.S. banking is more decentralized and localized, and more open to experimentation. This has led to trial and error, but also the world’s largest bank system.”

 

Regulatory Focuses

Canada’s banking system tends to promote safety and soundness, while the American system keys in on privacy, anti-money laundering, banking access, and consumer protection measures.”

 

Market Environment
The Canadian market is worth C$142 billion (US$111 billion) per year, while the U.S. market is over 10x bigger at US$1.4 trillion. Interestingly, these market sizes explain why Canadian banks often seek growth opportunities in the U.S. market, while U.S. banks just focus on the massive domestic sector for growth.”

Number of Banks

There are 85 banks in Canada, and 4,938 in the United States.”

Market Share
Canada’s five biggest banks hold a whopping 89% of market share, while America’s five biggest banks only hold 35% of market share.”

 

CanadaUSBankingFinancialSystemVisualCapitalistComparisonsDailyBusinessNewsMHProNewsRBCGlobalAssetManagement600

To see of download the full sized version of this infographic, click here or the image above.

MHProNews will also take this as an opportunity to link up under related reports below of some of the previously published Canadian-connected manufactured housing news. ## (News, analysis, and commentary.)

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ECN Triad Financial Services – Fascinating Facts, Manufactured Home Industry Professionals, Investors

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Tricon MH Community Stock Insider Trade, Plus Manufactured Home Market UPdate$

UPDATE: MHC Future in Doubt, the Other Side of Rent Control

 

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DTS Manufactured Home Lending – Views to FHFA NAFCU, an Innovative MH Community Operator, and MHARR

March 24th, 2017 Comments off
fhfa-logo-house-cash-scott-lewis-flickrcreativecommons-posted-daily-business-news-mhpronews-

Credit: Scott Lewis, Creative Commons.

Back in January, The Federal Housing Finance Agency (FHFA) issued a request for input (RFI) on its duty to serve (DTS) underserved markets ‘pilot program’ to finance manufactured homes, with a deadline of March 21st.

According to commentary from the Manufactured Housing Association for Regulatory Reform (MHARR), the request was an adjunct to its December 29, 2016 final rule implementing the Duty to Serve Underserved Markets provision of the Housing and Economic Recovery Act of 2008 (HERA), seeking public input on considerations that Fannie Mae and Freddie Mac should include in their determinations of whether to include manufactured home chattel loan pilot programs in their Duty to Serve Underserved Markets Plans.  And if so, how such pilots could be designed, taking into account policy, safety, and soundness considerations.

DutyToServeManufacturedHousingMMarkWeissJDPresidentMHARR-MHProNews-

Text and image credit, MHProNews.com

As the deadline arrived, there was no shortage of commentary and feedback from the industry and interested parties.

I am writing to you in regard to the Request for Input on Chattel Financing of Manufactured Homes. Overall, NAFCU supports the steps the Federal Housing Finance Agency (FHFA) has taken to increase the liquidity of the mortgage market and improve the distribution of investment capital available to very low-, low-, and moderate-income families,” said Ann Kossachev Regulatory Affairs Counsel for the National Association of Federally-Insured Credit Unions (NAFCU).

DTSManufacturedHomeLendingViewtoFHFANAFCUanInnovativeMHCommunityOperatorandMHARRcreditLinkedIn-postedtothedailybusinessnewsmhpronewsmhlivingnews

Ann Kossachev. Credit: LinkedIn.

Nonetheless, NAFCU’s members have expressed concerns regarding the entrance of Fannie and Freddie into the chattel loan market given the history of manufactured housing loans in the secondary market.

Kossachev continued with a cautious tone to the FHFA.

Therefore, NAFCU requests that the FHFA diligently evaluate the chattel loans market prior to requiring the GSEs to decide whether they should pursue a pilot program, thereby extending the time allotted for the GSEs to make such a decision,” sais Kossachev.

NAFCU also requests that the FHFA continue to be transparent in the implementation of the chattel loans pilot program through regular updates and opportunities for stakeholders to provide feedback so the industry may closely follow the progression of the program.

Kossachev also shared that there is, potentially, very serious danger in moving forward too quickly, and that more time was the key to permit GSEs to evaluate the chattel loans marker.

There is serious trepidation among NAFCU’s member credit unions that the implementation of the FHFA’s chattel loans pilot program will cause a negative disruption in the mortgage market. Namely, credit unions are worried that lenders will increasingly enter the chattel loan market because of the associated higher interest rates, ignoring the fact that there is typically a higher rate of delinquency for manufactured housing loans,” said Kossachev.

Delinquencies in the chattel loan market often occur later in the life of the loan, such that the manufactured home is worth much less than the outstanding unpaid loan balance. This type of circumstance creates a risky environment susceptible to a crash.

The full response from the NAFCU is linked here.

It should be noted that NAFCU references the same documents that MHProNews published earlier this month in a feature story on DTS, linked here.

 

A Response From an Innovative Community Operator

Brian Gallagher, COO, CPA, JD, MBA, of Santefort Real Estate Group in Westmont, Illinois, and owner/operator of 11 manufactured home communities located in Illinois and Indiana, comprising 3,000 home sites, also provided commentary to the FHFA.

DTSManufacturedHomeLendingViewtoFHFANAFCUanInnovativeMHCommunityOperatorandMHARRcreditLinkedIn2-postedtothedailybusinessnewsmhpronewsmhlivingnews

Brian Gallagher. Credit: LinkedIn.

We are very confident that the Enterprise’s support of a secondary market for manufactured home community (MHC) chattel loans would be a win-win-win,” said Gallagher.

Secondary Market Investors (SMI) would receive higher yield investments with mitigated risk characteristics. Consumers would have access to more lending sources which, among other key benefits, would lower borrowing costs and unlock the equity value in their manufactured homes. MHC chattel home loan originators would have a source of funds to replenish their lending pools, leading to greater activity, jobs, and more Quality Affordable Housing for a presently unsubsidized and underserved consumer market.

Gallagher continues, stating that he sees a particular, innovative, method leading to success.

The Enterprises could bring this about through leading the development of ‘template transactions’ – standardized documents, PMI, and ‘Park Agreements’, pursuant to which the MHC’s in which the loan collateral is located agree to cooperate with originators and SMI to mitigate the risk of loss arising from borrower default. In sum, the Enterprises’ promotion of a chattel loan secondary market would satisfy their ‘Duty to Serve’ the lower economic classes which are disproportionately dependent upon manufactured home community living for their quality affordable housing needs.

The full response from Gallagher is linked here.

 

PimpleOnElephantsAssGSE-FHFA-ManufacturedHomeLending-MHProNews

To see the related news story linked above, please click the graphic.

For a deeper dive into understanding GSEs, Duty to Serve, and manufactured home lending, including Eagle One Financials Titus Dare and his “4S’” of good lending, click here. ##

(Editor’s Note: a special review of MHI’s comments is planned after the Tunica Manufactured Housing Show.

(Image credits are as shown above.)

rcwilliams-writer75x75manufacturedhousingindustrymhpronews

RC Williams, for Daily Business News, MHProNews.

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

MH Industry Lender, Change Pending

February 10th, 2017 Comments off

BankVault$100sDailyBusinessNewsMHProNewsMHProNews has been told by an informed source that an announcement for a change is coming with a manufactured housing industry connected lender.

That announcement, our source says off-the-record, will be coming as soon as Monday.

This comes on the heels of another announcement, that Clayton Bank could be acquired by FB Financial Corp., a holding company of Nashville-based FirstBank.

That change of ownership must clear regulatory hurdles.

Follow up reports on each of these industry-connected lending stories will be found on the Daily Business News soon. ##

(Image credit, MHProNews graphic stock photo.)

SoheylaKovachManufacturedHomeLivingNewsManufacturedHousingIndustryDailyBusinessNewsMHProNews-Submitted by Soheyla Kovach for the Daily Business News on MHProNews.com.

Legal and General Reveals Secret for Modular, Prefab Lending

February 9th, 2017 Comments off
LegalandGeneralRevealsWhatsNeededforModularPrefabLendingcreditLegal&General-postedtothedailybusinessnewsmhpronewsmhlivingnews

Legal & General factory. Credit: Legal & General.

The survey arm of insurance giant Legal & General believes it has the answer for bringing the mortgage market on board with prefab and modular home lending.

An industry-wide guarantee would help bring everyone to the market but, of course, their appetites will differ according to the requirements of their own lending policies,” said a Legal & General spokesman.

There are many ways of reassuring mortgage lenders that homes constructed offsite are reliable enough to lend on.

But not least is the need to establish an industry kite mark such as Build Offsite Property Assurance or the National House Building Council which offer independent assurance around the design life of the homes.

britishgianteyescavcoindustriesholdingscreditlgcavcoopenclipart-postedtothedailybusinessnewsmhpronewsmhlivingnews

Credits: Legal & General, Cavco, Open Clip Art.

Legal & General, which owns a modular housing factory capable of building 3,000 homes per year in Leeds, U.K., has been active in the manufactured, modular and prefab industries, including increasing its stake in builder Cavco Industries.

Speaking on the Farmer Report by Cast CEO Mark Farmer in November, which called out modular housing as a solution to the U.K. housing crisis, Paul Stanworth, managing partner at Legal & General, commented on the company’s plans.

paulsanworthcreditukinfrastrcutreinvestment-postedtothedailybusinessnewsmhpronewsmhlivingnews

Paul Sanworth. Credit: UK Infrastructure Investment.

This review sets out a clear way for the construction sector to reinvent itself in order to meet the ever-growing demand for homes and infrastructure,” said Stanworth.

Legal & General is helping to address this problem by investing in a modern factory to produce homes using manufacturing processes seen in the production of cars and other consumer goods.

This construction method is safe, clean, and fast, providing a high level of consistency and durability. We sincerely hope that Farmer’s review galvanizes the entire sector to invest in innovation and secure its future.

According to Mortgage Introducer, Legal & General Surveying Services has been helping lenders understand risks and opportunities with visits to development sites that use modern methods of construction and by having speakers talk to property risk managers. It has also invited lenders to its factories.

The government also supports offsite construction and hints that a soon to be published housing white paper may increase that support,” said the spokesman.

The government will be keen to use these homes to fulfill the need in our cities as well as new towns. We see offsite construction as part of the wider solution to the housing crisis, and these buildings are particularly well suited to delivering affordable homes – the very kind of property we need most.

LegalandGeneralRevealsWhatsNeededforModularPrefabLendingcreditMortgageIntroducer-postedtothedailybusinessnewsmhpronewsmhlivingnews

Credit: Mortgage Introducer.

While critics of prefab homes in the U.K. often negatively compare them to ones built after World War Two, Legal & General says that the modern construction is very different.

Post-war, the key was to house people. Now the materials used must come with quality assessment so the properties can be mortgaged from the outset,” said the spokesman.

Also the quality of build and the features and specifications available are light years away from previous incarnations. New techniques are likely to be higher quality than traditional techniques because they are precision engineered.

Much like the automotive industry, the technology and features available now are unrecognizable to the post-war period.”

ChineseSpanishPowerPlayerstoBuildPrefabFactoriescreditcompaniesEnglandnet-postedtothedailybusinessnewsmhpronewsmhlivingnews

Credits: Companies, England Net.

For more on modular and prefab housing in the U.K., including China National Building Material Company (CNBM), Barcelona Housing Systems and U.K. housing association Your Housing Group (YHG) joining forces to build six prefab factories that will deliver 25,000 energy efficient homes per year, click here. ##

(Image credits are as shown above.)

rcwilliams-writer75x75manufacturedhousingindustrymhpronews

RC Williams, for Daily Business News, MHProNews.

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

Free Manufactured Housing Finance, Business Seminars and Forecast

March 24th, 2014 Comments off

standing-room-only-2014-louisville-manufactured-housing-show-seminar-room-masthead-blog-mhpronews-com-Some 2100 +/- manufactured housing industry professionals from all segments of the industry are expected at the 2014 Tunica Manufactured Housing Show. Registrations have come in from states coast to coast.

The Tunica Show features more homes and exhibitors than any other industry trade show in North America. Networking and free luncheon’s are part of the show line up.

Popular finance and business building seminars are offered free to industry attendees. General information about the finance and business building seminars are found linked here.

Tunica offers popular free manufactured and modular home finance panels, which features top industry lenders as well as MH Community commercial lending panels, both moderated by MH finance expert, Dick Ernst..

Business Building CRM, Marketing and Sales building programs and a Manufactured Home Community Lesson’s Learned panel discussion are on the schedule. A guest column by Brad Nelms on Why Retailers and Community Operators should Go Tunica, is linked here.

A possible program change may occur in the MHC Lessons Learned panel, which is being moderated by the National Community Council’s VP, Jenny Hodge. Rick Rand has advised seminar management that he may not be able to attend, but seasoned veteran and MHC-MD.com consultant, L. A. “Tony” Kovach will be available as an alternate panelist for that session. Featured MHC panel experts include Tammy Fonk with CBRE who has years of experience in a family owned community, as well as Maria Horton, a respected executive from west coast MHC powerhouse Newport Pacific. Seminars will be held in the Harrah’s Convention Center exhibit hall.

Video interviews are planned at the show, such as the ones linked here.

The current forecast for the Tunica Manufactured Housing Show is a sunny on Wednesday 3/26/2014 with a low of 43 degrees and a high of 55. Thursday’s forecast is partly cloudy, with a 10% chance of rain, low of 54 and a high of 63. Friday’s forecast is mostly sunny, but 40% chance of rain, with a low of 43 and a high of 69.

This is an industry trade show, and is not open to the general public. Industry professionals are reminded that they can typically gain free admission by bringing their photo ID and business card. ##

(Image Credit: MHProNews)

 

MHARR, MHI and GSE Reform, Background to Danny Ghorbani’s release and George Allen’s Planned “Story”

March 18th, 2014 4 comments

mhpronews-mharr-mhi-associations-graphic-manufactured-home-marketing-sales-managementOn Sunday, March 16 at 4:47 PM ET, a news release was received from the Manufactured Housing Institute (MHI) on the topic of the highly-charged issue of a Government Sponsored Enterprise (GSE, “Fannie and Freddie”) reform plan.

Some 3 Hours and 43 minutes later, at 8:30 PM on the same day, the first message came in from the Manufactured Housing Association for Regulatory Reform (MHARR) on the same topic. MHI’s full release on the topic of GSE reform is linked here, while the link to MHARR’s full release on the topic is found here.

In his message, MHARR’s President, Danny Ghorbani, claimed their “…calculated risk by MHARR that has now…” quoting their headline …achieves major victory.

While most industry professionals who follow these events would agree that this is certainly promising for consumers and the industry, the GSE reform legislation has a long way to go before it is becomes law. This is a one step along a longer path, as Ghorbani’s own statement from MHARR later acknowledges.

That fact begs the question, what makes this a bigger success than HR 1779 or S 1828, both of which are well underway?

It also raises the question, what was the “calculated risk” that Ghorbani’s message refers to in his release? Where is the “risk” in MHARR sending a position paper to the Senate Banking Committee?

Could it be that the “risk” Ghorbani refers to is that MHARR has not publicly supporting HR 1779 and S 1828? Isn’t it risky for their member-manufacturers and customers to not cover all possible legislative and lobbying bases, as MHI’s team has been doing on the finance and other issues?

MHARR claims MHI had a Single Focus

MHARR CEO Ghorbani’s message included this paragraph,

At a time when much of the industry was pursuing a singular focus on unsuccessful legislative modifications to the loan originator compensation and high-cost loan provisions of the Dodd-Frank finance reform law — and was unwilling to join MHARR in an  initiative on the much farther-reaching issue of GSE reform — the MHARR Board of Directors chose to advance the inclusion of all types of manufactured home loans and definitive action to end the discrimination that has dogged the industry’s consumer financing for decades, as part of the GSE reform process in Congress.”

As the numerous items that follow below demonstrate, the first part of this statement cited above is demonstrably in error. Namely:

At a time when much of the industry was pursuing a singular focus on unsuccessful legislative modifications to the loan originator compensation and high-cost loan provisions of the Dodd-Frank finance reform law –…”

Furthermore, as this Congressional legislative session is not yet over, none of these efforts – GSE Reform or Dodd-Frank reform – can be called a failure or a success.

So why is there a need for MHARR’s CEO to paint MHI’s efforts as a ‘failure,’ when the GSE effort is not as far along as HR 1779 or S. 1828?

Some MHARR officials and allied industry commentator in the dark?

Messages and calls from MHARR members, those aligned with MHARR and others outside of that camp to MHProNews seem to be unaware – or in some cases, won’t acknowledge – the fact that MHI has demonstrably been engaged on this topic of GSE reform for years, along with a variety of other issues in Washington. DC. Some examples will be shown in a down-loadable attachment, later below.

Agenda of Making MHI look bad, as a way of Making Ghorbani and Allen look more important?

broadside-darius-danny-ghorbani-president-mharr-george-allen-allen-letter-community-i ... actured-housing-institute-manufactured-housing-association-for-regulatory-reformOn Monday, after allegedly communicating with Danny Ghorbani, President and CEO at MHARR, George Allen sent an email to Rick Robinson, Vice President and General Counsel at MHI.

Robinson forwarded that email to Senior Vice President Jason Boehlert for response.

Allegedly, this email exchange has been shared with Ghorbani, Jim Visser, Ken Rishel and others linked to MHI and MHARR; and seems to accuse MHI of grabbing credit for work done by MHARR.

While sensational, the problem with this accusation by Allen against MHI, is that it flies in the face of the facts. But doesn’t this fit Allen’s self-description on his own blog of his activities? The word Allen used about himself, “agitate” includes the following definition from Google: “1) make (someone) troubled or nervous.”

The Google definition of agitator, is also insightful:

1. a person who urges others to protest or rebel.

synonyms: troublemaker, rabble-rouser, agent provocateur, demagogue, incendiary;

The Facts Say Differently

While some in the mix seem to take the position, ‘Don’t confuse me with facts, my mind is made up,’ a simple Google search demonstrates to the truth seeker that MHI has issued numerous updates on their activities in the GSE Reform arena.

A search of the articles published in the MHI News module demonstrates the same, and for those who attended the 2014 MHI Winter Meeting and Legislative Session, a briefing was given to attendee/members that coveted all of MHI’s lobbying and legislative initiatives, including GSE reform.

Clearly, MHI’s engagement on the GSE issue is a matter of public record and is no secret.

As MHProNews has documented in a series of articles, linked at the end of this report, George Allen has in his own words:

  • describes himself as one who agitates,

  • has gone from opposing Danny Ghorbani and calling him a flawed writer and leader, to now lauding him as a leader others should follow. The difference between recent and prior statements by Allen on Ghorbani?   Is it the MHARR paid ad and factories who Allen himself says are now paying Allen?

  • Allen has blasted MHI off and on for some two years for not buying him out when Allen wanted to retire.

Don’t such flip flops, contradictions, slanted ‘coverage’ and motivations beg a reasonable person to question the motivations and accuracy of Allen’s commentaries?

The Emails Between Allen and MHI – “We Provide, You Decide” ©

The exchange below is in a first-to-last message time sequence. They are word-for-word as the respective parties sent them, save the removal of the ‘signature (contact/disclaimers/resource)’ info at the end of each email and what amounts to ads from each of the respective emails. The typos in George Allen’s emails are in the original. The first message, as shown below, is to Rick Robinson at MHI.

Start of George Allen to Jason Boehlert at MHI Email Exchange

From: <gfa7156@aol.com<mailto:gfa7156@aol.com>>

Date: March 16, 2014 at 5:43:35 PM EDT

To: <info@mfghome.org<mailto:info@mfghome.org>>

Cc: <rrobinson@mfghome.org<mailto:rrobinson@mfghome.org>>

Subject: Re: MHI Housing Alert –  Senate Banking Committee Leaders Unveil GSE

Reform Plan – MHI Successfully Stakes out Ground for Manufactured Housing and

Personal Property Loans

Rick

When did MHI switch its’ primary legislative focus from Dodd-Frank regulatory
reform to GSE Reform? Didn’t seem to be that much of a priority during the
annual Legislative Conference last month in Arlington, VA. Here quoting directly
from this afternoon’s HOUSING ALERT from MHI:


“MHI Successfully Stakes Out Ground for Manufactured Housing and Personal
Property Loans” and “As advocated for by MHI, the legislative draft released by
the Committee includes language that would provide manufaturd home loans secured
by personal property with key access to a newly envisioned secondary market
mechanism.”

As exciting and hopeful as this news is, I’m wondering whether we’re indeed
reading/learning of a pure MHI effort to this much desired result, OR is there
more to this now quickly unfolding story, i.e. Is there someone else more
intimatly involved ‘in the mix’ who is NOT getting credit, in this email alert,
for drafting the language and lobbying for this legislative draft?

Frankly, I sense a story here….

GFA

George Allen


—–Original Message—–

From: Jason Boehlert <jBoehlert@mfghome.org>

To: GFA7156 <GFA7156@aol.com>

Cc: Richard Jennison <rjennison@mfghome.org>; Rick Robinson <rrobinson@mfghome.org>

Sent: Mon, Mar 17, 2014 11:32 am

Subject: RE: MHI Housing Alert – Senate Banking Committee Leaders Unveil GSE

Reform Plan – MHI Successfully Stakes out Ground for Manufactured Housing and

Personal Property Loans

George,

Thank you very much for your email.  However, I am unclear what you mean by “Is
there someone else more intimatly(sic) involved ‘in the mix’ who is NOT getting
credit, in this email alert, for drafting the language and lobbying for this
legislative draft?” We do not comment on the activities or actions of other
national organizations—that is not our role. Nor do we believe it serves the
interests of the industry or our members to do so.


Since MHI represents every facet of the industry—including builders, community
owners, lenders, supplier, retailers—our policy priorities are reflective of the
totality of our membership.  Dodd-Frank is a priority.  As are housing
finance/GSE reform, energy efficiency, tax, HUD Code and environmental issues
and we would never focus on one issue so persistently that it would be to the
detriment of the others. I know you did not attend, but GSE reform was
reaffirmed as an association policy priority during our legislative conference
and winter meeting and was discussed at length during the meeting of our
newly-formed government relations committee. The new government relations
committee has multiple representatives from each MHI division.


Expanding secondary market access for manufactured home loans, including those
secured by personal property has been a long-standing priority of MHI—dating
back to at least the duty-to-serve requirements that were included in the
Housing and Economic Recovery Act (HERA) in 2008.  We have, and continue to,
work with FHA, FHFA, Fannie Mae, Freddie Mac, Ginnie Mae, HUD, and the House
Financial Services and Senate Banking Committees to improve the availability of
financing options in the manufactured housing market, both from a residential
and commercial standpoint.

MHI represents every significant manufactured home lender in the industry and we
work hard to see that the totality of their interests—which are not limited to
Dodd-Frank/CFPB rule makings—are served.  Our efforts on GSE reform extend well
beyond the Senate Banking Committee’s recent legislative draft. If you are
suggesting that we have not been an active player in this regard, you are
mistaken. GSE reform has been an issue that has received very close attention
from our internal and external lobbying teams on an ongoing basis for several
years.

A sampling of our most recent activities include (but certainly not limited to):

· working with drafters of the underlying Corker-Warner bill (S.
1217)—which serves as the blueprint for the Senate Banking Committee bill—to
garner their approval for modifications of their measure that would expand
access for personal property loans

· communicating—both our internal and external lobbying teams—on an
ongoing basis with Democratic and Republican senior staff to the Senate Banking
Committee to include specific manufactured home/personal property language

·         providing key industry lending data to Senate staff to underscore the
need for specific statutory language

· facilitating an industry lender roundtable for Senate Banking
Committee staff—this panel of lenders, which represented the vast majority of
personal property manufactured home lending—provided the key information and
feedback needed by  committee staff to include manufactured home lending
provisions (which took place at our recent legislative conference)

· working to develop a consensus coalition position with consumer group
that are also seeking to expand personal property lending options for
manufactured housing

·  outreach to the Federal Housing Finance Agency (FHFA)—the
administration’s voice on GSE reform—to support legislative provisions expanding
manufactured home lending opportunities

· engaging an external lobbying firm whose principals include the most
recent Democratic Staff Director to the Senate Banking Committee (working
directly for Chairman Tim Johnson) and provided significant access to committee
staff drafting the legislation

As I hope you are aware, MHI’s involvement has not only been limited to the

Senate Bill. Our work also includes:

· facilitating the first-of-its-kind lending conference, sponsored by
then Rep. Joe Donnelly, in Elkhart, Indiana (which I believe you attended)

· improving the FHA Title I &II programs and opening Ginnie Mae to new
issuers (a work in progress)

· coordinating more than 1,000 comments in opposition to FHFA’s
duty-to-serve rule, which would ignore secondary market access for personal
property loans

· working to provide equal access for all mortgages in the House version
of GSE reform –the Path Act (which also includes specific MH relief from the
Dodd-Frank Act)

· testifying before Congress on three separate occasions over the past
three years on the need for secondary market access for manufactured home loans
secured by personal property—this does not include testimony provided prior to
2010 on the need to improve the FHA Title I & II programs for manufactured
housing

· more than 300 meetings conducted over the past three years with
Members of Congress specifically on the lack of credit access provided by the
GSEs for manufactured housing

· working directly with Fannie Mae and Freddie Mac to develop new
lending options for manufactured housing

I can only speak to the involvement of MHI, which has been continuous and
ongoing and substantial. Looking at the history, I think it is fair to say MHI
and its members have been leaders in working to expand manufactured housing
financing options for quite some time.

Best,
Jason


Jason Boehlert
Manufactured Housing Institute (MHI)
Senior Vice President of Government Affairs

________________________________________

From: gfa7156@aol.com [gfa7156@aol.com]

Sent: Monday, March 17, 2014 1:20 PM

To: Jason Boehlert

Cc: news@journalmfdhousing.com; ken@rishel.net; Rick Robinson

Subject: Re: MHI Housing Alert –  Senate Banking Committee Leaders Unveil GSE

Reform Plan – MHI Successfully Stakes out Ground for Manufactured Housing and

Personal Property Loans

Jason

You, in behalf of MHI did NOT answer the lead question in my email
correspondence dated 3/16/2014, to wit; “When  did MHI switch its’ primary
legislative focus from Dodd-Frank regulatory reform to GSE Reform?” You can
blather all you want about ‘A sampling of our most recent activities include
(but certainly not  limited to)’ to  cloud the issue – which I’m getting to –
but the fact remains, throughout the Fall of 2014 MHI had tunnel vision relative
to effecting Dodd-Frank regulatory reform.


The tenor of your sentence,”We do not comment on the activities or actions of
other national organizations – that is not our role. Nor do we believe it serves
the interests of the industry or our members to do so.” tells me you well
understand what I was referring to in the above-referenced email  message, i.e.
Quoting MHARR’s Press Release dated 3/16/2014:  “…MHARR today lauded the
inclusion of specific  MHARR-proposed language in the bi-partisan GSE housing
finance reform bill (S.1217)…(containing) “langaguage submitted to the Senate
Banking Committee in Septermber and October 2013….” There lies the crux of
this whole issue of giving credit where credit is due!


Being as new as you are to MHI’s staff, you can be forgiven for not knowing how
often in the past, MHARR and MHI have ‘worked together’ to effect federal
legislation, e.g. Manufactured Housing Impovement Act of 2000 is but one
example. And how both national advocacy bodies have, in the past, ‘commented
(appropriately &/or positively) on the activities or actions of other national
organization’ YES, that should be one of the rolls taken on by MHI even if it’s
not as commonplace today as it has been at times in the past.


Furthermore; speaking as a 35 year entrepreneur businessman in the manufactured
housing industry and land-lease-lifestyle community asset class, and 20+ year
direct, dues-paying member of MHI, I disagree with you! Interadvocacy body
cooperation/praise (as should have been in this instance!) does serve the
greater interests of the industry, and certainly its’ members!


I think it entirely appropriate, that sometime this week, MHI take steps to
right the  misunderstanding couched in the subtitle & text:HOUSING ALERT, i.e.
“…MHI Successfully Stakes out Ground for Manufactured Housing and Personal
Property Loans”, before someone else does it for you….


Need someone to do this  public relations magic for you? I can recommend
someone, if asked.

GFA
George Allen

—–Original Message—–

From: Jason Boehlert <jBoehlert@mfghome.org>

To: gfa7156 <gfa7156@aol.com>

Cc: news <news@journalmfdhousing.com>; ken <ken@rishel.net>; Rick Robinson <rrobinson@mfghome.org>; Richard Jennison <rjennison@mfghome.org>

Sent: Mon, Mar 17, 2014 3:05 pm

Subject: RE: MHI Housing Alert – Senate Banking Committee Leaders Unveil GSE Reform Plan – MHI Successfully Stakes out Ground for Manufactured Housing and Personal Property Loans

George,

I am sorry to hear you found my response to your original inquiry,
unsatisfactory. I believe I answered in an honest and thorough fashion. But, to
try and further clear things up:

1) MHI is a multifaceted trade association.  This requires us to multitask and
pursue multiple policy priorities at the same time. Our focus is not solely
limited to Dodd-Frank. It also includes GSE reform, HUD-MHCC issues, tax, energy
and environmental policies.  This does not require us to shift our focus, but to
add to it–and GSE reform has been a focus of MHI now for several years.

2) I do not work for MHARR. Therefore, I have no real knowledge of their
lobbying activities. As such, it would be wholly inappropriate for me to comment
on MHARR’s activities. Just as it would be wholly inappropriate for MHARR to
comment, with any real knowledge on MHI’s policy activities.

3) Had you been able to attend MHI’s legislative conference, you have
undoubtedly learned that MHI’s GSE reform activities have been substantial and
ongoing.  MHI’s GSE efforts have been significant and have unequivocally led to
this positive outcome.  I am sorry you are unable to see yesterday’s news as a
positive development for the entire industry.


However, if you feel additional clarification is needed please feel free to
contact MHI’s CEO Dick Jennison at 703.558.0678.

Jason

———-

From: <gfa7156@aol.com>

Date: March 17, 2014 at 3:47:48 PM EDT

To: <jBoehlert@mfghome.org>

Cc: <news@journalmfdhousing.com>, <ken@rishel.net>, <rrobinson@mfghome.org>

Subject: Re: MHI Housing Alert –  Senate Banking Committee Leaders Unveil GSE Reform Plan – MHI Successfully Stakes out Ground for Manufactured Housing and Personal Property Loans

Jason

You can dance around the issue all you want, but truth be told, GSE reform was not a primary focus for MHI during the last half of 2014. I am an MHI member read what little is sent my way these days.

Amazing. You & MHI claim no prior knowledge of the source of the language used in this bi-partisan GSE housing finance reform bill (S.1217), yet are bold to state: “MHI will continue in its’ role as the leading advocate for the manufactured housing industry to ensure that manufactured home finance opportunities are expended to the greatest extent possible in forthcoming housing finance reform measures.” By the way, in this sentence, did you intend for the word choice to be ‘expended’, rather than ‘expanded’ or some other appropriate non-dissipating word?

Of course I see yesterday’s developments to be of value to the entire HUD-Code manufactured housing industry. And I see MHI’s HOUSING ALERT, in the manner in which it was written, to be unequivocal grandstanding, when it’d have been highly appropriate, and much appreciated by ‘the entire HUD-Code manufactured housing industry’, if credit had been given where credit was truly do!

Thank You for fleshing out my story for this week, if nothing more newsworthy doesn’t come along.

GFA.

George Allen

—- end of emailed messages on this thread —-

An impartial reading of George Allen’s messages suggests is a either a lack of objective research into the ongoing efforts and engagement by MHI on the subject of GSE reform, or perhaps an effort to “agitate” (Allen’s word about himself) against MHI, and/or some other motivations.  Allen clearly implies his intent to write about this topic, which is certainly his right, but after reading this exchange, does an objective person believe that Allen will right about it in a fair and balanced fashion?  Or will Allen use this once more to “agitate” against MHI?

As noted previously,

  • a simple Google search revealed numerous links dating back several years regarding MHI engagement on the topic of GSE reform. Please see below.

  • A search on the MHProNews website proves the same point of MHI engagement on GSE reform that Jason’s replies state.  So does a review of MHI’s typically weekly reports, that go out to members like Allen, and as did the update briefings during their 2014 Winter Meeting and Legislative session that all referenced efforts by that national trade association on GSE reform.

Why Does Allen seek to Manufacture a new Controversy?

It should be noted that MHARR has indeed made GSE reform an issue they have pursued.

But what is lacking from MHARR’s President and CEO, Danny Ghorbani is the same credit to MHI’s efforts, that Allen allegedly seeks on Ghorbani’s behalf from MHI as a tip of the hat to MHARR.

Thus Allen and Ghorbani seem to want from MHI what they are unwilling to give themselves. On MHI’s part, Boehlert’s responses to Allen are polite and professional.

Prior to issuing this report, MHProNews reached out once more for comment to Messrs. Allen and Ghorbani. For those anxious to share their views to their select group of readers, they have opted not to state reasonable replies to our questions for the record to the largest professional audience in the industry.  Why are they ducking replies?

A copy of the questions sent to MHARR’s President and Vice-President are below, as are the questions sent to George Allen.

A download of the search results from Google on this date for “Manufactured Housing Institute” = “GSE Reform” produced the results shown in the attachment linked here, which also reflects search results found on MHProNews, both of which pre-date by months or years the MHARR initiative ballyhooed by Danny Ghorbani.

The initiatives in the Senate both MHARR and MHI reference provide reasons for hope for all in the industry.

By contrast, this apparent manufactured controversy detracts from what ought to be one of many joint steps forward by MHARR, MHI and state associations, who all should be working in concert on issues vital to the manufactured housing industry.

Inflammatory messages may help a pair of ‘leaders’ posture themselves as tough, but do such missives advance or harm the manufactured housing industry’s agenda, and the interests of their own followers?

Industry voices cited in the articles found in the links below question if Danny Ghorbani – with or without the aid of George Allen – can effectively deal with regulators and politicos, without major changes in his modus operandi…or will real leadership by MHARR’s CEO come from Ghorbani’s successor, should Ghorbani depart or retire? ##


Appendix

Questions provided to George Allen for response by MHProNews:

1) Will you publish the unedited reply from Jason this upcoming weekend on your blog, or will you continue on your allegedly pro-Danny Ghorbani/MHARR, anti-MHI public stance?

2) As a self-proclaimed MH Communities owner advocate, how do you defend Danny Ghorbani’s embrace of Ishbel Dickens and her anti-MHC owners organization, when Dickens has reportedly said in public that community owners are “the enemy…”?

3) You’ve described on your blog your activities in part as an “agitator. ”  You’ve described Danny Ghorbani as a “leader.” Yet in the past, you decried Ghorbani for very similar stands to his current one, and after your own analysis, described in the article and links from the post here,

http://MHProNews.com/blogs/tonykovach/mharr-after-danny-ghorbani-and-more-manufactured-housing-issues/

you concluded Danny was mistaken in his writing that you then cited.  Where you wrong then? How do you answer your own rejection of Danny’s views  then, what has he practically accomplished since then which has caused you to change your stance? How much has payments for ads or other money received from MHARR factories influenced  your new found admiration for Danny?

4) Why do you not show remarks opposing your views on your blog?

5) We’ve invited you and Danny to debate MH Industry related topics; why have you not done so?

6) As an industry commentator, did you know that GSE reform was on the MHI legislative agenda?

7) You are fine with asking questions, so why do you not provide the courtesy of replying to questions when you are asked?

Questions provided to Danny Ghorbani and M. Mark Weiss at MHARR

1) We’ve asked many times, and ask again, what are the achievements of your last last 5 years at MHARR?

2) Why is it necessary to undermine MHI to make yourself look better?

3) Specifically what did you do – apart from MHI – that makes this advancement in GSE Reform your sole victory?

4) And how is this bill – not yet a law – more of a victory than HR 1779 or S 1828?

Previous Reports, Posts and Articles on this or Related Topics

Some Related Story Links:

Downloads and Attachments:

Commentary on MHARR ad from a cross section of MHPros in the Industry are found here.