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

June 25th, 2019 Comments off

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

 

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

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

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

 

SmokingGunEvidenceOfAntiTrustMonopolisticCollusionMoatClaytonHomesKevinClayton21stMortgageTimWilliamsWarrenBuffettMHLivingNewsMHProNews

In a series of direct quotes in context, a document from 21st Mortgage signed by Tim Williams, and video recorded comments by Kevin Clayton, these all line up to demonstrate how independent retailers, communities, and producers – among others – where purportedly harmed by action that could be deemed an antitrust violation. 21st, Clayton, and their association mouthpiece, MHI, and their outside attorney have all been asked to comment on these facts and allegations.  They’ve repeatedly declined comment.  https://www.manufacturedhomelivingnews.com/bridging-gap-affordable-housing-solution-yields-higher-pay-more-wealth-but-corrupt-rigged-billionaires-moat-is-barrier/

 

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

 

21stMortgageCorpHMDAData

 

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

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

 

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

 

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

 

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

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

 

FollowThe MoneyPayMoreAttentionToWhatPeopleDothanwhatTheySaySpySea72MartyLavinYachtManufacturedHousingINdustryProMHProNews

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

 

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

 

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

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

 

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

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

 

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

 

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

 

 

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

 

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

 

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

 

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

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

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To see a sample of our emailed news update, click here. To sign up for the factory-built home industry’s #1 headline news, click here or the graphic above.

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

Related Reports:

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

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

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

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

 

 

 

 

 

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.

Veterans Administration Offers Manufactured Home Loans

June 23rd, 2013 Comments off

The Veterans Administration (VA) Home Loan allows qualified veterans the opportunity to purchase a home, including a manufactured home, with or without a site, or to buy and improve a site, with no down payment. Although the veteran is required to live in the house, the borrower’s spouse also satisfies the occupancy requirement. The VA will protect a private lender of a manufactured home loan up to 40 percent of the amount (no more than $20,000) if the veteran or a later owner of the home fails to make good on the loan. As military.com tells MHProNews, a veteran may also buy income property, up to four units, providing the borrower occupies one of the units.

(Photo credit: Horizon Land Co.)

Guidelines for Buying Factory-built Homes

May 30th, 2013 Comments off

The Napa Valley Register in Calif. offers definitions of mobile, manufactured and modular homes and the appropriate financing. Mortgage banker Chris Salese notes that fateful day of June 15, 1976 when manufactured homes came under the jurisdiction of the Department of Housing and Urban Development (HUD) and the regulated production included “key components such as the quality, durability, safety and affordability of the home,” now known as HUD Code. Manufactured homes are constructed on to a non-removable steel chassis and likely sited on a concrete pad, at which time the wheels and axles are removed The local building inspector is not required to do an inspection because it (presumably) was checked out at the factory. Modular homes arrive in sections that are joined and finished on site, and must be approved by local and state building ordinances, which puts them in the same loan pool as site-built homes. He says for a manufactured home loan, proof must be provided that the home has been converted to real property and is covered by a title insurance policy. MHProNews has learned you will need an appraisal and possibly an inspector to confirm the structure is sound. If you pay cash for a manufactured home, do remember if you intend to later re-sell the home, tighter lending requirements and higher interest rates prevail for this type of property.

(Photo credit: Wikipedia–MH chassis)

Rep. Fincher’s Remarks Regarding HR 1779 in the Congressional Record

May 3rd, 2013 Comments off

Rep. Stephen Fincher (R-Tenn.), Rep. Bennie Thompson (D-Miss.), and Rep. Gary Miller (R-Calif.) sponsored The Preserving Access to Manufactured Housing Act, HR 1779, which will amend the provisions in Dodd-Frank that curtail the availability of manufactured housing loans. In remarks in the Congressional Record of April 26, 2013, Rep. Fincher, while noting the importance of manufactured homes as affordable housing that many families rely on, states the housing turndown resulted in an 80 percent reduction in the production of MH, the closing of 160 plants, and the loss of 200,000 jobs. He says the Consumer Financial Protection Bureau (CFPB) issued guidelines as required under the Dodd-Frank Act that will classify many manufactured home loans as predatory and high-cost under the Home Ownership Equity and Protection Act (HOEPA). He says, “ Simply put the cost of originating and servicing a $250,000 loan and a $25,000 loan are the same in terms of real dollars, but the cost as a percentage of each loan’s size is significantly different. This difference causes the smaller-sized manufactured home loan to potentially exceed the new HOEPA thresholds set by Dodd-Frank and be categorized as a high-cost mortgage and stigmatized as predatory, even though there is nothing predatory about the features of the loan. The liabilities associated with making and obtaining a HOEPA high-cost mortgage will likely prevent lenders from offering loans to low and moderate-income homebuyers, denying families access to necessary credit for new and existing manufactured homes.” Noting the business model for buying manufactured homes differs from a traditional mortgage, he adds the measure would also remove manufactured home retailers and salespersons from being classified as loan originators, providing they do not receive compensation from a lender. As MHProNews reported April 27, the Senate will be considering a similar bill. For the entire entry into the Congressional Record, please click here.

(Photo credit: Champion Homes)

MH Field Hearing Yields HUD, MHI, Industry, and Resident Viewpoints

November 30th, 2011 Comments off

At the “State of the Manufactured Housing Industry” Congressional Field Hearings in Danville, Virginia, Nov. 29, members of the House Congressional Subcommittee on Housing, Insurance, and Community Opportunity heard from a variety of persons in the MH arena.

Henry Czauski, Acting Deputy Administrator for the Office of Manufactured Housing programs, noted the affordability aspect of Manufactured Housing (MH) to moderate and low-income families. He stressed the importance of federal regulations in ensuring MH is built to standards that enhance the safety and security of the structure, and the involvement of the Manufactured Housing Consensus Committee (MHCC) in that process. Noting that the “certification” fees HUD collects on each MH section has declined with the decrease in sales, he said Congress has appropriated funding to supplement these fees in three of the last four years.

Kevin Clayton, president and CEO of Clayton Homes, and secretary of the Executive Committee for the Manufactured Housing Institute (MHI), testified that 72 percent of all new homes sold in 2010 under $125,000 were manufactured homes. While noting that the industry as a whole provided 75,000 full-time jobs in 2010, 200,000 jobs have been lost as the industry has declined. Clayton said provisions of the Dodd-Frank Act will disparately impact manufactured home lending, that the SAFE ACT, now under the auspices of the Consumer Financial Protection Bureau (CFPB) needs clarification in its implementation, and that HUD’s outdated building codes and guidance on preemption have left the industry vulnerable to state and local regulators.

Tyler Craddock, of the Virginia Manufactured and Modular Housing Association, said manufactured housing comprises 5.6% of all the housing in Virginia, but in many rural areas where construction labor is not readily available, 15-20% of the housing is MH. Craddock said factory-built housing sales are moving more in the direction of modular in his area, and blamed the lack of affordable financing for consumers wanting to purchase manufactured housing.

Adam Rust, research director of the Community Reinvestment Association of North Carolina, noting the difficulty in obtaining financing for MH, said a person applying for a manufactured home loan is three times more likely to be turned down than someone applying for a site-built home loan. Rust said GSEs could be restructured to make financing more available to persons buying manufactured homes, because interest rates are too high and consumer protection is too low. He also suggested making funds available for community groups to buy MHCs.

Stanley Rush, of MHD Empire Service Corporation, says SAFE Act implementation is hurting MH salespeople who are only helping consumers with paperwork, not with lending decisions. With so many sources of lending drying up because regulators are encouraging lenders to stay away from MH loans, the industry is being further crippled, Rush stated.

J. Scott Yates, president of Yates Homes of Pittsylvania County in Virginia, testified his company has dropped to five employees from 19, and from selling 180 homes a year to only 30. Yates said he is now selling modular homes to keep his company alive because the codes are the same for site-built homes and financing is easier to obtain. He said the big loser is the American consumer of more modest means.

MH Virginia resident Carla Burr said she could only afford her $113,000 home because she had sold her condo and had the cash. Her other option was to finance the home at 10 percent, despite a good credit rating, a figure she says prevents many people from being able to afford MH. She said not only does the government need to promote manufactured housing through the myriad of programs already existing, but it also needs to protect community residents who sometimes are at the mercy of unscrupulous community owners.

MHARR provided written testimony for the committee.

(Editor’s Note: The full written portion of the statements from each of the above are available for your download and reading here below).

Mr. Henry S. Czauski, Acting Deputy Administrator for Manufactured Housing Program, U.S. Department of Housing and Urban Development

Mr. Kevin Clayton, President and Chief Executive Officer, Clayton Homes, Secretary for the Executive Committee of the Manufactured Housing Institute (MHI)

Mr. Tyler Craddock, Executive Director, Virginia Manufactured and Modular Housing Association

Mr. Stan Rush, Account Representative, Haylor, Freyer and Coon, Inc.

Mr. J. Scott Yates, President, Yates Homes

Mr. Adam Rust, Research Director, Community Reinvestment Association of North Carolina

Ms. Carla Burr, Manufactured Housing Resident

Written Testimony submitted by Danny Ghorbani for the Manufactured Housing Association for Regulatory Reform (MHARR)


(Graphic credit: Wikipedia  U.S. House of Representatives)

Niche lender will include manufactured homes in their lending mix

August 2nd, 2011 Comments off

G:\MH Merchandiser.com\Marketing the MHMSM concepts\Ads, Graphics + Images\Cedar_Exterior_Sectional_wikimedia_commons_posted_on_Manufactured_home_marketing_sales_management_MHMSM.com_MHPRoNews.pngHousingWire reports that First Guaranty Mortgage Corp (FGMC) is moving more into correspondent lending. This is a lending arena hit hard following the housing bubble burst in recent years. FGMC plans wholesale and retail originations under one umbrella, dubbed the Correspondent’s Edge. This niche-focused lending initiative will include manufactured housing loans along with rehabilitation loans. This will include the Department of Housing and Urban Development 203k or Fannie Mae HomePath loan. FGMC plans to compete with larger lenders in these arenas. “Many of the correspondents we speak with have found themselves limited to fairly vanilla loans, limiting them to a fairly narrow range of potential borrowers,” said FGMC Senior Vice President Andrew Peters. Peters added that “Correspondent’s Edge should provide them with additional tools and offerings, and widen the market for many of the newer correspondents making the transition from third party originator to correspondent lender.”

(stock photo courtesy of Wikimedia Commons)