Archive

Posts Tagged ‘manufactured home’

Amidst Controversy, CoreLogic’s Special Report on Investor Home Buying Trends

June 21st, 2019 Comments off

 

AmidstControversyRalphMcLaughlinCoreLogicSpecialReportInvestorHomeBuyingTrendsDailyBusinessNewsMHProNews

What follows is a scenario that sheds light on affordable housing – and thus impacts manufactured home professionals and the home buying public – in several ways.

 

There may be absolutely no connection to the fact that CoreLogic, which received a letter related to an antitrust probe by the Department of Justice, per Inman and the Real Deal, has just published a new special report on investor home buying trends.

 

Posted on the CoreLogic blog on 6.20.2019 by the firm’s Deputy Chief Economist, Ralph McLaughlin, is a report styled a “deep dive into investor homebuying activity” – some 1250 words plus graphics – for the year 2018. DSNews and Newsmax are among the sources that have reported on this study.

 

RalphMcLaughlinPhotoDeputyChiefEconomistCoreLogicDailyBusinessNewsMHProNews

 

McLaughlin says that “By the end of 2018, the investment rate in the U.S. housing market reached 11.3% – the highest rate since CoreLogic started tracking these data in 1999. The investment purchase rate in 2017 was the second highest on record at 11%, which was above the investor buying fury of 2012 – 2014 when purchase rates reached 10.3% – 10.9%.”

 

USInvestorHomebuyingRatesCoreLogicGraphicChartDataDailyBusinessNewsMProNews

To begin to properly understand the manufactured home industry, one must grasp the larger housing market, macrotrends, and the elephants in the room.

 

Smaller investors are responsible for increasing investor homebuying activity. This is in sharp contrast to the rise in large institutional investors in the years following the recession,” per CoreLogic.These so-called “mom-and-pop” investors grew from 48% of all investor-purchased homes in 2013 to more than 60% in 2018. Large investors – those who purchased more than 101 homes – nearly doubled their activity between 2000 and 2013 but have pulled back since the foreclosure crisis and now sit at 15.8% of purchases. Medium-sized investors – those who purchased between 11 and 100 homes – have also seen their share steadily fall, from a peak of 30% in 2010 to 22.7% in 2018.”

 

CorelogicUShomebuyingRatesByInvestorSizeManufacturedHousingIndustryDailyBusinessNewsMHProNews

While purported data from the Manufactured Housing Institute has at times been arguably  tilted to favor certain member firms, there is no known claims against CoreLogic for rigging their data findings.

 

We also found investor purchase rates were much higher among starter-homes. The share of starter homes purchased by investors peaked at over one-in-five homes over the past two years, with a rate of 20.3% in both 2017 and 2018,” wrote McLaughlin.

 

ChartGraphicDataThreeCoreLogicUSInvestmentsByHomePriceCategoriesStarterMoveUpHighEndManufacturedHousingMHProNews

 

That factoid clearly has significance to manufactured home sellers, investors, and affordable housing professionals.  More to the point, given the law of supply and demand, it is part of the reason why ‘starter homes’ are harder to come by for first-time and other affordable housing seekers.

CoreLogic, in their report linked here, also noted that “While there are several plausible explanations, we found investors are attracted to markets where rents are relatively high compared to purchase prices.”

That point coincides with issues that MHLivingNews and MHProNews have previously reported – spotlighted in part by the viral Seattle is Dying video, found in the analysis and report linked from the text-image box below.

 

A bottom-line takeaway from CoreLogic’s research? “…it’s a truism that homebuyers today are more likely to cross paths with investors during an open house than at any other time in the past two decades.” There full report is found linked here.

 

Hurdles, Headaches, and Challenging Opportunities

These facts and trends reflect problems and hurdles for millions.  But it is also an opportunity in disguise for the industry and its professionals, if…

 

 

…but only if, the kinds of problematic behavior that has been previously outlined by MHProNews and our sister site, MHLivingNews, are avoided or managed.  Two examples are linked above and below.

 

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. Why hasn’t Allen told his readers how that cost them money? https://www.manufacturedhomelivingnews.com/bridging-gap-affordable-housing-solution-yields-higher-pay-more-wealth-but-corrupt-rigged-billionaires-moat-is-barrier/

 

These facts and trends also reflect a need for public officials to act to enforce the law on enhanced preemption, the Duty to Serve manufactured housing, and other laws already on the books that could transition millions from renting into a life of greater opportunity and wealth-creation through home ownership.

See our most recent report, linked below the bylines and notices.

ManufacturedHomeIndustry#1HeadlineNewsMHProNews

Be in the know! MHProNews is manufactured housing’s runaway most-read industry news, tips, and views pros can use. 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.

That’s this today’s first episode of “News through the lens of manufactured homes, and factory-built housing,” © where “We Provide, You Decide.” ©. ## (News, fact-checks, analysis, commentary.)

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.

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

ManufacturedHomeIndustry#1HeadlineNewsMHProNews

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.

 

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

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.

SubmitNewsTipsCommentsLettersToEditorMHProNews

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.

Related Reports:

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

New HUD Videos of Secretary Ben Carson, Innovative Housing Showcase 2019, Surprising Manufactured Housing Institute Reveals

MH Community Leader Robert Van Cleef – Public Call – Federal Investigations of Berkshire Hathaway, Clayton Homes, 21st Mortgage, Manufactured Housing Institute

 

Declining Manufactured Home Shipments More Serious Than Retailers, Communities Being Told

“Game On” – “Fighting Discriminatory Zoning” “Moral Obligation” Fix “Worsening Nightmare” – State Associations Entering Spotlight

Dueling Statements, NAMHCO, MHI, MHARR, Weigh In On Controversial MH Bill, “George Allen Pawn Gambit”

MHARRCallsHUDSecretaryCarsonEndDiscriminatoryZoningHUDRegulatedManufacturedHomesCommodoreHomesCorpMHARR

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

 

 

 

 

 

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

June 18th, 2019 Comments off

 

WhatCongressionalRepsSenatorsIndustryProfessionalsShouldBeAskingGSEDutyToServeManufacturedHousingMHProNews

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

 

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

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

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

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

ToadySycophantDefinedDailyBusinessNewsMHProNews

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

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

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

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

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

MHARRlogoMHARRNewsHeaderMHProNews

MHARR REITERATES CALL FOR DTS INVESTIGATION

 

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

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

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

The Manufactured Housing Association for Regulatory Reform is a Washington, D.C.-based
national trade association representing the views and interests of independent producers of federally-regulated manufactured housing.

 

Manufactured Housing Association for Regulatory Reform (MHARR)

1331 Pennsylvania Ave N.W., Suite 512

Washington D.C. 20004

Phone: 202/783-4087

Fax: 202/783-4075

Email: MHARR@MHARRPUBLICATIONS.COM

— 30 —

 

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

MHCommunitiesOfAZNealTHaneyPresidentWhyTheyQuitManufacturedHousingInstituteMHIDailyBusinessNewsMHProNews600

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

KennyLipschutzQuotePoorJobOfLobbyinginMHIndustry-postedMHProNews48thMHINCClist

2018-10-03_1018ManufacturedHousingInstituteHILogoCavcoFleetwoodPalmHarborFannieMaeFreddieMacLogoDailyBusinessNEwsMHProNEws

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

SoTheAssociationMHIIsNotThereFortheIndustryUnlesstheinterestsoftheBigBoysJointheIndustry'sMartyLavinMHIAwardWinnerQuoteMHProNews

 

FollowThe MoneyPayMoreAttentionToWhatPeopleDothanwhatTheySaySpySea72MartyLavinYachtManufacturedHousingINdustryProMHProNews

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

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

(See Related Reports, further below. Text/image boxes often are hot-linked to other reports that can be access by clicking on them. Third-party images and content are provided under fair use guidelines.)

ManufacturedHousingProNewsMHProNewsConfidentialTipsDocumentsNews

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 or Comments or Letter to Editor 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.

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

1) To sign up in seconds for our MH Industry leading emailed news updates, click here.

ManufacturedHomeIndustry#1HeadlineNewsMHProNews

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.

2) To pro-vide a News Tips and/or Commentary, click the link to the left. Please note if comments are on-or-off the record, thank you.

3) Marketing, Web, Video, Consulting, Recruiting and Training Re-sources

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.

Related Reports:

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

Views From Trenches of Manufactured Housing – Factories, Retailers, MHCs, Others Sound Off

 

Real World Economics’ Professor Ed Lotterman says “Playing Monopoly is More Than Just Rolling the Dice”

 

Manufactured Home Communities’ Dodd-Frank Moment Looms, Senator Elizabeth Warren Takes Aim at Several Manufactured Housing Institute Community Members

Dueling Statements, NAMHCO, MHI, MHARR, Weigh In On Controversial MH Bill, “George Allen Pawn Gambit”

 

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

Washington Leak – Justice Department Prepares Major Antitrust Investigation

 

“Have…Giants…Stifled Competition,” Antitrust Battle Lines in D.C., plus Manufactured Home Market Updates

Shocking, True State of the Manufactured Housing Industry, plus Solutions for Profitable, Sustainable Growth – May 2019

MHARRCallsHUDSecretaryCarsonEndDiscriminatoryZoningHUDRegulatedManufacturedHomesCommodoreHomesCorpMHARR

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

 

TimeToInvestigateFannieFreddieMishandlingofDutyToServeDTSMHARRissuesPerspectiveManufacturredHousingAssocRegulatoryReformLogo

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

 

 

 

 

 

 

“Color and Depth,” “Sad,” “Raising Standards,” and Manufactured Housing

June 17th, 2019 Comments off

 

KatyWeldonColorDepthSadRaisingStandardsManufacturedHousingDailyBusinessNewsMHProNews

 

The comment was one of the recent direct messages via LinkedIn – meaning, a privately sent comment – from a company president in a non-MHARR member firm. “Excellent coverage on the dc pr from the dr at hud! Much success to you. You bring color and depth to our industry.”  It was a reference to our extensive coverage of the Innovative Housing Showcase (IHS2019) on the National Mall in Washington, D.C.

 

A very different publicly posted comment reads as follows: “Thank you Tony for presenting this!  As a consultant to this industry since 1995, I too have been in focus groups and listened to home owners talking about the issues and disappointments.  The industry as a whole is way too purchase/bean counting controlled and less quality and customer satisfaction concerned…..sad!” – Katy Weldon, Design Consultant for Developers and Contractors.

As a notice to new readers, MHProNews often turns quoted text bold and brown to make it pop, but otherwise leaves the copy as submitted, typos and all. That disclaimer noted, the above from Weldon was in response to the recent report, which can be accessed via the linked text-image box below.

 

Ongoing MH Headwinds – Angry Manufactured Home Residents, Understanding the Manufactured Housing Industry Dilemma Through Their Eyes

 

In response, our publisher – L. A. ‘Tony’ Kovach told Weldon, “Katy, kudos for having the courage to say that publicly.  Too many are fearful of speaking the truth out loud these days, where MH’s version of Big Brother might see it.  But lest we forget, MHI’s prior president said something similar in his exit message to the industry. Thanks again, MHI’s former president’s comments are Linked below.” 

https://www.manufacturedhomelivingnews.com/former-manufactured-housing-institute-president-manufactured-home-owners-urban-institute-and-you/

Weldon responded later to the former MHI’s president’s comments with, “What a statement! I read the entire thing. If only those ideals were adopted industry wide and nation wide. Mr. Stinebert is right on! Rather than lowering quality and building a cheaper product….raise your standards and marketing practices.

Stop asking “ how much will it cost us?” And instead ask “ what is the profit in doing this?” The market is huge for what manufactured housing can produce, and I have seen first hand the overwhelming positive response to quality manufactured homes. Two of the homes I helped design and furnish won national awards for 2017 & 2018. The public is waiting!!!!!”  In addition to the point Weldon made, Stinebert stressed that customers satisfaction and the value proposition to customers must be a top concern.

There is a method to what some might deem madness on MHLivingNews and on MHProNews to challenge the powers-that-be and the status quo.

But it ought to be self-evident that when the manufactured home industry is now in its 8th straight month of year-over-year declines in new home sales, production, and shipments, that something is going wrong.

April2019ManufacturedHomeProductionShipmentTop10StatesMHARRlogoDailyBusinessNewsMHProNews

To see the full report and analysis, click here.

 

Just last week, a housing economist said that ‘millions of housing units are needed. With the need so great, why is manufactured housing performing so far below its historic norms?

 

RE Focused Economist Says, ‘Millions of Housing Units’ Needed

 

The Omaha-Knoxville-Arlington axis say they are the industry’s leaders. Okay, then for them and their ‘amen corner’ to keep singing as if it was all sunshine and roses in MHVille is arguably the true madness. 

Let’s note anew that quoting a source doesn’t mean that we agree on everything, or even on every nuance of that quote.  Quotes reflect the statement of the person or organization who shared it.  Quotes are cited to gain perspective.

The causes of manufactured housing’s downturn are numerous.  Not everything is the direct result of some specific action taken by a player in the Omaha-Knoxville-Arlington axis.

That said, many issues can be traced directly back to the ‘axis’ and their allies.  Further, their failure to dive into – and correct – the problems that residents or others raise only leaves the industry with a tarnished and all too commonly undefended image.

 

 

 

12 Industry Professionals Could Reverse the Industry Downturn in 30 Days

Frankly 2 people could reverse the long-manufactured home industry downtown. 

But let’s be broader minded. If a relatively small group of vertically integrated firms plus some major community operators decided 9 months ago to cut back on new home orders, that would result in a commensurate industry downturn.

Recall that last year, MHProNews reported a tip that was later confirmed in the fall of 2018 that Clayton Homes was going to cut back on their inventory levels? Given that roughly half of the industry’s production and sales are Clayton product, that alone could account for much of the downturn.

But the reverse is also true. Taking the proper steps, a relatively small number of firms could reverse the industry’s fortunes rapidly.

There has been a change at the helm of two major industry players.  We will focus in the days ahead on some variations that could help or harm the industry’s fortunes.

That’s this Monday, Monday’s first look at News Through the Lens of Manufactured Homes, and Factory-Built Housing,” © where “We Provide, You Decide.” © ## (News, analysis, and commentary.)

 

ManufacturedHousingProNewsMHProNewsConfidentialTipsDocumentsNews

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 or Comments or Letter to Editor 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.

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

1) To sign up in seconds for our MH Industry leading emailed news updates, click here.

ManufacturedHomeIndustry#1HeadlineNewsMHProNews

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.

2) To pro-vide a News Tips and/or Commentary, click the link to the left. Please note if comments are on-or-off the record, thank you.

3) Marketing, Web, Video, Consulting, Recruiting and Training Re-sources

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.

Related Reports:

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

Manufactured Housing Professionals, HUD Secretary Ben Carson, Must Promote These Two Words

Prosperity Now, Nonprofits Sustain John Oliver’s “Mobile Homes” Video in Their Reports

HUDSecretaryBenCarsonSpeechManufacturedHomesManufacturedHousingActiveIngredientMedicationStrongerAmericaMHLivingNews

https://www.manufacturedhomelivingnews.com/hud-secretary-ben-carson-speech-on-manufactured-homes-manufactured-housingactive-ingredientmedicationfor-a-stronger-america/

 

 

 

 

 

 

 

Ongoing MH Headwinds – Angry Manufactured Home Residents, Understanding the Manufactured Housing Industry Dilemma Through Their Eyes

June 12th, 2019 Comments off

 

HeadwindsAngryManufacturedHomeResidentsUnderstandingManufacturedHousingDilemmaThroughTheirEyesNYStateAssemblyGailTraversTrusteeAkronMobileHomeParkMHProNews

Still from NY State video, posted further below. The problem that Gail Travers describes exists in a number of states, as serious and objective observers know. The challenge, insights, analysis, and solutions follow.

HUD Secretary Ben Carson has been promoting manufactured homes as a sustainable private-sector element to the affordable housing crisis since early in his tenure at the Department of Housing and Urban Development (HUD).

 

That acknowledged and saluted, as much as Secretary Carson has been striving to do, his factually grounded theme is largely drowned out by a variety of other voices.

 

Among them?  The angry resident who lives in a pre-HUD Code mobile home, or in a manufactured home built on or after the date that the HUD Code construction and safety standards went into effect on June 15, 1976.

Those angry residents often misuse terminology, much the same as other Americans or much of the mainstream media does.

 

TrailerHouseMobileHomeManufacturedHomeFactoryBuiltHousingEvolution101MHProNews-MHLivingNews

You must meet people where they are. Terminology must be taught and caught. Make a habit of using the correct terminology.

 

With that backdrop, there is no denying that the problem that Gail Travers, a resident and ‘trustee’ in Akron, New York’s “Akron Mobile Home Park Tenants Association” exists in numerous U.S. markets.

As you read this letter below from Ms. Travers, imagine that you have been considering buying a manufactured home. How excited would you read her letter, would you still be ask excited about making that same decision?

The letter is presented neither to either endorse or debate her contention.  There is plenty of evidence for her claim. As our analysis which follows will reflect, our biggest point of departure with Ms. Travers and the thousands of others like her in numous states is the proposed solutions that many such voices advances in the face of the very real and painful challenges they share.

With that backdrop, here is her letter to the editor of the Buffalo News.

 

LetterMobileHomeResidentsNeedProtectionsFromPredatorsBuffaloNewsGayleTraversAkronNYManufacturedHomeIndustryMHProNews

 

I read with interest the May 21 editorial: “NYC Rent Laws Unneeded Here.” New Yorkers throughout the state need safe, affordable housing, like elsewhere across the country.

The people of New York State fear monied investors are stealing our communities and future. We want our legislators to enact laws to protect the decent, affordable housing options that remain. And it is not just in cities.

Look at what is happening to mobile home parks – the largest segment of affordable housing in the country. Parks are being purchased by out of state investors with little interest in the area. Corporate investors like Sunrise Capital from Clearwater, Fla. (who bought Akron Mobile Home Park in Akron in late 2017) are snapping up parks, raising rents, and disrupting the well-being of life for the people who live there, most of them on fixed incomes. Now Sunrise has purchased another park in Lockport and is attempting to do the same as they have tried to do in Akron.

Mobile home owners who rent the land on which their homes sit need protections from these predators, as do apartment renters elsewhere.

This sentence from the editorial is interesting: “There are affordable housing options here, not on every block, but enough that most working people can find a place to live.” Shouldn’t ALL people have a place to live? We need safe, affordable housing free from exploitation. If our legislators are listening to their constituents, they will vote for protections.

Gail Travers, Trustee in Akron Mobile Home Park Tenants Association
Akron

End of Buffalo News letter to editor by Gail Travers.

 

Even a quick Google search reveals that Ms. Travers has been active in engaging the media and legislators. 

For example. You can see Travers’ testimony before the NY State Assembly hearing, starting about the 24:32 time mark, and ending about the 28:42 time mark.

 

 

It must be noted that other manufactured home community residents are also sharing similar stories in that same video, posted above. So for those who are not familiar with this issue, viewing more of this video is sobering. It paints the picture that her letter to the Buffalo News stated.

It may bear mention that Stacey White, noted on the NY State Assembly website as “a leader at MHAction,” also testified at this same session.  Certainly, some of the talking points that Ms. Travers used are like those raised by MHAction in their white paper, videos, talking points, etc.  The letter from the Democratic chair of the committee that held these hearings is linked here as a download.

 

Rent Control?

Rent control is one of the notions commonly floated as a ‘solution’ to such problems as Travers recounts.  But that has been passed in other jurisdictions, and it has routinely proven to not work as it was believed it might. Who said? Another resident activist in Delaware, that said as much, in a statement found in the report linked here.

Rent control, regardless of who promotes it, fails as badly as wage-price controls did when the late President Richard Nixon (GOP) promoted that ploy during his demonstration, and he watched that fail. The free market routinely works better than a command and control economy, so long as the free market isn’t badly distorted.  For those who doubt that, just look at communist-run China, were virtually empty, nearly new high-rise housing buildings stand.  Rent control, as several linked reports further below reveal, simply doesn’t work as its proponents claim.

Indeed, what is occurring is a distortion of the free market, that’s why this problem that Travers describes exists. The good news? Secretary Carson – should he opt to do so – holds in his hands the key that could unlock the solution to this vexing issue.

 

Corporations and Local Officials Distorting the Free Market, and What Secretary Carson Could Do

Secretary Carson is quite right when he repeated said in recent weeks that the heart of the problem for housing is found in increasing the supply of affordable homes. When more affordable housing options exist, then the increasing spike in prices will begin to abate.

Besides Secretary Carson, who else has said as much?  How about Lawrence Yun, Ph.D., Chief Economist for the National Association of Realtors (NAR). Writing in Forbes, Yun said the following.

 

LawrenceYunNARShort8.3MillionHousingUnitsRisingRentsHousingPricesCuredOnlyByMoreBuilding

Collage by MHProNews.

 

But he did more than just say that, per our sources, it was Dr. Yun who encouraged the study of manufactured housing by NAR’s Scholastica ‘Gay’ Cororaton, Certified Business Economist (CBE).

Cororaton made a similar claim to Secretary Carson’s claim of the ‘resilience’ of manufactured homes, as the quote/graphic below reflects.  It bears mention that her 2018 research cited our publisher, L. A. ‘Tony’ Kovach and MHARR’s President and CEO, Mark Weiss, JD, in her first footnote on page 48.  See her insightful research, linked here.

 

CompareMobileHomeTrailersPastManufacturedHomesSaferMoreDurableQuoteScholasticaGayCororationPhotoSmallPercentageDamagedDuringHUrricanesMHProNews

 

The facts that Carson and Cororaton touted complement each other to a significant degree.

But that is not the message that the vast majority of Americans are getting about manufactured homes, because of the image-plagued ‘mobile home parks’ (SIC).  It is from such land-lease communities where millions of pre-HUD Code mobile homes and post-HUD Code manufactured homes are found. 

It is from such land-lease communities where a significant number of ‘bad news’ stories originate.  Note the screen capture from Google news, below, that makes the point.

 

MobileHomesNewsGoogleSearchDailyBusinessNewsMHProNews

The bulk of these stories are from manufactured home land-lease communities, a.k.a. mobile home parks. Street retailers and HUD Code home producers, take note. This impacts you as much as it does community owners.

 

It is arguably from ‘black hat’ operations that Travers and others understandably complain about that are causing significant levels of the blowback that manufactured home (MH) living experiences.

On the one hand, we respect the right of Travers and others to organize and ‘fight back.’ But the reality is that some of what they do arguably undermines their own economic position.  More on that another time, because what the focus should be is how can the issues they raise best be addressed?

Let’s look.

 

Manufactured Housing – White Hats, Black Hats, Investing, Consumers, MH Independents

 

Manufactured Home Residents, MH Investor Reality Checks

If an investor came into a community like Akron, paid a lot to buy what is a commercial property, and then tried to aggressively hike site fees (lot rents), what options does someone like Travers have today?  In her area, and many others, the choices may be very limited.

But if ‘enhanced preemption’ were being aggressively promoted, and/or new communities were coming on-line, the dynamic would shift.

This is what is missing from Secretary Carson’s pro-manufactured home dialogue.  Our sources at HUD, the fact that HUD officials asked about this question declined comment, and the utter lack of any mention of the words “enhanced preemption” on the Manufactured Housing Institute (MHI) website all suggest that the good doctor has been kept in the dark on this subject.

That begs the question, why?

That should also beg the question, why doesn’t the Manufactured Housing Institute (MHI) have that critically valuable phrase on their website? 

 

MHIlogoManufacturedHousingInstitutelogoEnhancedPreemptionNoResults2019-06-12_1203MHProNews

The fact that MHI keeps reportedly nudging Allen into distractions away from the central issues that are harming the industry is itself revealing. Listen to what pro-MHI voices like that say, but consider the opposite. It will often be closer to the truth. Note, Allen calling MHI a monopoly, and blaming MHI members for the problems caused by consolidation are below.

ManufacturedHousingIndustryMonopoly-Oligarchy-GeorgeAllen-PostedDailyBusinessNews

Allen, in the quotes above, is de facto pointing to positions that MHARR correctly took, but that MHI took the wrong stance. The purported choice of Richard ‘Dick’ Jennison, who is said to be communicating with Allen, of him as their surrogate is almost comical, because of Allen’s history of attacking the Arlington, VA based trade group. He’s not a credible surrogate.

GeorgeFAllenCommunityInvestorEducateMHCSECOcoba7MonopolyConsolidationClaytonHomes21stMortgageBerkshireHathawayQuotesManufacturedHomesCommunitiesMHproNews

You can’t make this stuff up. Allen blasted MHI, but was reportedly recruited by Richard ‘Dick’ Jennison for being their surrogate and attack dog. But when his bark or ‘roar’ are examined, there is no bite behind it. Allen contradicted MHI’s new stances several times, publicly, and has never explained his flip flops. Per sources, he is rewarded for his attack dog role.

 

Or why doesn’t the MHInsider – who along with brown-noser George F. Allen – who purportedly routinely regurgitate whatever their overlords in Arlington, VA desire – lack the words on their ‘professional’ blog?

 

DarrenKrolewskiPraisingMHProNewsDailyBusinessNewsMHProNews

 

By contrast, facts, problem, and solution oriented Manufactured Housing Association for Regulatory Reform has numerous articles on the topic of Enhanced Preemption.

 

ManufacturedHousingAssociationRegulatoryReformMHARREnhancedPreemptionDailyBusinessNewsMHProNews

Some pundits, such as blogger George F. (F?) Allen have attempted to mischaracterize the work of MHI and MHARR. MHI clearly says of themselves that they represent “all segments of factory built housing,” that means retail, communities, lenders, suppliers and the like, not just producers. By contrast, MHARR clearly says that their focus is on the interests of the producers of HUD Code manufactured homes. So while MHARR has an indirect interest in lending, communities, or retail, that is not their mission. That said, MHARR members and leaders have voted to support the establishment of new post-production groups that would faithfully represent the interests of retailers, communities, and other segments of the industry. Allen’s characterization is arguably false, erroneous, or deliberately misleading. What is sadder, perhaps, is that Allen and Spencer Roane claim to represent the interests of communities. If so, why don’t they loudly and proudly call out MHI and Omaha-Knoxville for the ways that they’ve harmed other communities, and independents at large? Why does Allen ignore his own role in the SECO dirty laundry?

 

So too here on MHProNews, or ManufacturedHomeLivingNews. See what the Google search done today reveals.

 

EnhancedPreemptionSearchManufacturedHousingMHProNewsNadaMHIbutMHARRhasit2019-06-12_1227

 

This goes back to the argument that the power players behind MHI are posturing efforts to promote manufactured housing, but do so tepidly. Even brown-noser Allen admitted in a recent post that MHI was essentially dragged into the Innovative Housing Summit (IHS). He downplayed the key role that companies played, and made it look like MHI rose to the occasion, as if to save the day. 

 

ManufacturedHousingInstituteInnovativeHousingSummit2019-06-12_1242DailyBusinessNewsMHProNews

 

If so, why was there so little public media coverage of the event from a manufactured housing perspective?  That’s an acid test.  The rest is window dressing for those who will buy whatever the big boys sell.

 

 

Frank Rolfe…

What MHI member and controversial community investor Frank Rolfe referred to as customers being chained to a Waffle House is apt but ugly description of this current environment.

Investors and resident groups like MHAction, NMHOA, or others talk about that point, each from their own perspective.  They agree, for example, that few move homes, and that the cost of such a move of a mobile/manufactured home can be $5,000

 

But the solution is potentially simple. HUD could begin implementing the solution on short notice. It fits a theme that the Trump Administration has repeated many times.

Enforce the law” on “enhanced preemption.”

HUD has oddly used their power of enhanced preemption only rarely, but it has been used, as the screen capture of the top of letter to a local jurisdiction below reflects.

 

HUDLetterCityRichlandMSEmilyGoodeJenHallMMHAFederalPreemptionofManufacturedHomesFederalEnhancedPreemptionMHIA2000DailyBusinessNewsMHProNews

Letter from MHARR to HUD Secretary Ben Carson, with examples supporting Enhanced Preemption is linked here.

 

What is missing is making that kind of letter from HUD to local jurisdictions a routine.  HUD could rapidly start the fix of problems like those Travers raised, simply by enforcing enhanced preemption routinely.  Doing so would open up new options for current and potential manufactured home buyers.

That’s why MHARR has been promoting it for years, and it is the same reason that MHProNews and MHLivingNews has too.  As a disclaimer, note that our trade media support of enhanced preemption predates any ads from MHARR by several years.  In fact, while our firm was an MHI member, our management was mystified that MHI didn’t push it. So as years of articles reflect, our editorial position has been consistent, unlike the ‘cowardly lion’ Allen – who when asked on the record – has not denied that he’s been rewarded for attacking MHARR, and this pro-growth trade platform.  So, he’s purportedly guilty of doing what he accuses others of doing.  How nice.

State association executives who are MHEC members know about enhanced preemption. The letter above was obtained at the request of a state association. But apparently, the word is out that MHI and the powers that be in MHVille don’t want this discussed.

 

 

MHARR has provided notice to HUD Secretary Carson delivered by FedEx and is documented here.  When carefully read, it reflects the intent of Democrats and other legislators who supported the Manufactured Housing Improvement Act (MHIA) in 2000.

The evidence in favor of enhanced preemption is compelling.

Which once more begs the question, if MHARR and congressional representatives who were in the mix are promoting the use of enhanced preemption, then why aren’t MHI and the big boys?

The logical answer, based upon the known evidence, is sad and sobering.  The big boys benefit from the current state of affairs, because it allows them to consolidate more of the industry at a discounted price. Because it is subtle, it isn’t obvious.  This fits Buffett’s ‘strategic Moat’ and other mantras. 

 

UnderstandingWarrenBuffettCastleMoatMetaphorsQuotesDailyBusinessNewsMHProNews

Bad news is arguably part of the moat. A lack of good news serves a dastardly use for someone who wants to consolidate the industry too.  Since Buffett-led Berkshire bought Clayton, the industry is actually smaller today than then. How is that possible, during an affordable housing crisis, unless they wanted it to be so?

ManufacturedHousingSHipmentsBloombergQuintFactoryBuiltRebuidRecoveryDailyBusinessNEwsMHproNEws

 

Rephrased, for the big boys, bad news for the industry is paradoxically useful.  How so?  Because it harms marginal players the most.

 

 

That causes businesses to sell out at a discount. 

Some are silent on this trend, because they think they benefit from it. Others are silent out of fear of a loss of their jobs. But some, like Alan Amy call it out for what it is.

 

 

How Enhanced Preemption Would Make the Difference

If new communities were opening, or the Gail Travers of her area had an option to move to another community or to a development homesite, that would act as a competitive check

there have numerous times in our industry’s history that developers and communities paid to move someone in.

What’s missing, in other words, are options for consumers.  Rent control is a band-aid that will likely cause fewer to want to build a community, than the few that already do.

The solution is to encourage the creation of more home sites.

MHARR’s initiative is potentially part of the solution. More on that at this link here

As a total contradiction of his own arguments, Allen admits to the problems of predatory firms, without mentioning that many of these have clear ties to MHI.

 

WeveGotAProblemGeorgeFAllenQuoteCommunityInvestorEducateMHCSECOMobileHomeParkManufacturedHomesMHProNews

But if MHI and the industry’s powers that be truly wanted to solve the dilemma that faces Travers and others, they would have pressed HUD Secretary Carson, or Brian Montgomery at HUD, to ‘enforce the law’ on enhanced preemption.

Since many of the problematic news stories that are reported in the mainstream media are about issues related to the concerns raised by those like Ms. Travers, logically, the number of ‘bad news’ headwinds would abate as more options would come online.  ICYMI, or need a referesher, see the article linked from the text-image box below.

 

Spreading City Ban on Individual Lot Placements Threatens Independently Owned Manufactured Home Communities, Retailers, Residents, and HUD Code Producers

 

Buffett’s Gift to Manufactured Housing Industry, Media Coverage…

Letters and news like the gut-wrenching woes of Gail Travers drive down interest in our industry and sales. To reverse the trends, one must get to and resolve the root issues.

For MHI or state association members with the cojones, don’t forget to write a letter and thank Warren Buffett for contributing via the Novo Foundation to the Tides nonprofit, which in turn supports MHAction. It is MHAction that has been generating more bad media for the industry than MHI claims to generate good media.  Coincidence?

Or is it a coincidence that Berkshire Hathaway owned BH Media Group assets failed to cover IHS2019.

 

WAVY, Mainstream TV – HUD Secretary Ben Carson, Innovative Housing Showcase – Clayton Homes, and Berkshire Hathaway Revelations

 

These are professionals.  MHI has a professional public relations person on staff. What was that PR person doing prior to IHS2019? Why didn’t Kevin Clayton, or Tim Williams at 21st Mortgage Corp, ask Berkshire to have their media assets robustly cover Secretary Carson’s positive comments about manufactured housing?

The pattern is there to see, for those with open minds.

One must wonder if Last Week Tonight with John Oliver’s viral video misnamed “Mobile Homes” would ever have been made without Buffett’s support of MHAction? Oliver shows a screen shot of the MHAction co-branded white paper.

MHActionPrivateEquityGiantsConvergeManufacturedHomesLastWeekTonightJohnOliverMobileHomesVideoStillMHProNews

You build a case, by laying out the evidence, one fact at a time.

 

Whenever you see MHAction at work, are you thinking of Warren Buffett? Of Clayton Homes and 21st Mortgage Corp?

 

Prosperity Now, Nonprofits Sustain John Oliver’s “Mobile Homes” Video in Their Reports

WarrenBuffettTidesNoVoFoundationMHActionGeorgeSorosManufacturedHomeLivingNews

 

Conclusions – The Solution for Residents and Independents

Without supply and demand coming into better balance, the manufactured home industry is logically heading into a blind alley. Communities will slowly return to capacity, after years of being artificially depressed as evidenced by the documented machinations like the one linked here. When asked, MHI, Clayton, 21st and their attorneys have repeatedly declined comment on those documents.

What happens when existing communities reach capacity?  What impact will that have on independent producers of HUD Code homes that supply communities?

TonyGetsItAlColeOxfordBankTrustManufacturedHousingIndustryDailyBusinessNewsMHProNews

DearTonySoheylaNoGreaterResourceSpeakstoIssuesOpportunitiesWeFaceAsIndependentRetailersGusRodriguezTejasHomesTX

Sure, there will be replacements of older mobile homes or earlier manufactured homes even when a community reaches effective capacity.  But for the long-term health of the industry, and the benefit of consumers, it will require more #HousingChoice for consumers.

Enforce the law, as stated in the Manufactured Housing Improvement Act of 2000.  That must be part of the savvy, long-term mantra of industry professionals, especially independents.  It is on that point that consumer groups and industry independents could come together.

ManufacturedHomeIndustry#1HeadlineNewsMHProNews

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.

That’s this edition of News Through the Lens of Manufactured Homes, and Factory-Built Housing,” © where “We Provide, You Decide.” © ## (News, analysis, and commentary.)

 

ManufacturedHousingProNewsMHProNewsConfidentialTipsDocumentsNews

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 or Comments or Letter to Editor 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.

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

1) To sign up in seconds for our MH Industry leading emailed news updates, click here.

ManufacturedHomeIndustry#1HeadlineNewsMHProNews

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.

2) To pro-vide a News Tips and/or Commentary, click the link to the left. Please note if comments are on-or-off the record, thank you.

3) Marketing, Web, Video, Consulting, Recruiting and Training Re-sources

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.

Related Reports:

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

“Results vs. Resistance,” Cutting Fog with Facts for MHVille

Tim Sheahan, NMHOA President, Controversial Points of Agreement with Marty Lavin, George Allen on Communities

 

HUD Secretary Ben Carson Address to Innovative Housing Showcase, Complete Official Speech Text

Secretary Ben Carson’s, Julian Castro’s Manufactured Housing, “Trailer,” “Mobile Home” Revelations, 2020 Battles Ahead

“Cribs with Carson,” Tiny House, Manufactured Homes, Innovative Housing Showcase, National Mall, Washington, D.C. Video Report

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

George Orwell, All Issues Are Political Issues, Manufactured Housing Challenges, and You

President Donald J. Trump Visit to Manufactured Home Community, Video, Hurricane Florence Update

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

President Trump Spotlights Factory Home Builder in Speech, Proven Promotion, Support of Industry Advancement

George Allen Blasts MHI, NCC Ignoring Own, Spencer Roane, SECO, COBA7, Tom Lackey Controversies

Hundreds of New Manufactured Home Communities Opened, But How Many Have Closed? Industry Research Result$

MH Communities, Owners, MH Independents Alert – NMHOA and MHAction Next Steps? – Part 1

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

 

 

 

 

 

 

Manufactured Housing Professionals, HUD Secretary Ben Carson, Must Promote These Two Words

June 6th, 2019 Comments off

 

ManufacturedHomeIndustryProfessionalsHUDSecretaryBenCarsonNeedGetBehindTheseTwoWordsDailyBusinessNewsMHProNews

There are times that simplicity is useful. Consider these facts.

 

·        There is an affordable housing crisis.

·        HUD Secretary Ben Carson and thousands of others say that local zoning and placement (barrier) issues are harming the nation.

·        Conventional builders (National Association of Home Builders, factory builders, others) say that zoning, regulatory, and placement issues are harming the nation and affordable housing.

·        But the simple application of two words that are already law could solve much of this almost immediately.

 

What are those two almost magical words?

Enhanced preemption.

Under the Manufactured Housing Improvement Act of 2000, there is a provision that ‘enhanced’ federal preemption. That provision has been used on occasion, but not routinely.

If HUD Secretary Ben Carson ordered the Office of Manufactured Housing Programs (OMHP) to fully implement enhanced preemption on HUD Code manufactured housing, local barriers that so complicate the issue of manufactured housing could melt away.

The Manufactured Housing Association for Regulatory Reform (MHARR) is already behind this concept.

The Manufactured Housing Institute (MHI) was part of the coalition that made enhanced preemption part of federal law.

 

 

There are state association executives that already know about this provision of the current manufactured housing law, believe in it, and want to put that provision to work.

There are HUD Code producers that of course know about enhanced preemption.

Implementing those Two Words = Enhanced Preemption = under the MHIA of 2000 could change the fortunes of potentially millions of Americans over time.  It would boom the production side of the industry.  Others could enter the industry and tap into the millions of affordable housing opportunities that those two words would unlock.

 

 

To learn more, see the reports linked above and below.  More on this simple yet-profound topic tomorrow and in the days ahead. No politics, just 311 words that boil down to two words.  Enhanced preemption. “We Provide, You Decide” © ## (News, analysis, and commentary)

(See Related Reports, further below. Text/image boxes often are hot-linked to other reports that can be access by clicking on them. Third-party images and content are provided under fair use guidelines.)

LATonyKovachQuoteManufacturedHousingIndustryWontReachPotentialAddresscoreIssuesArtificallyholdingitback466By 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:
http://www.linkedin.com/in/latonykovach

Sign Up Today!

ManufacturedHomeIndustry#1HeadlineNewsMHProNews

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.

Click here to sign up in 5 seconds for the manufactured home industry’s leading – and still growing – emailed headline news updates.

Related References:

The text/image boxes below are linked to other reports, which an be accessed by clicking on them.

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

 

 

 

 

 

 

 

 

 

Patrick Industries-Manufactured Housing Supplier-PATK Investor Relations Spotlights Manufactured Home Industry Challenges, Opportunities

May 30th, 2019 Comments off

 

PatrickIndustriesLogoPATKirManufacturedHousingSupplierSpotlightsManufacturedHomeIndustryChallengesOpportunitiesMHProNews

It has been some times since the Daily Business News on MHProNews took a look under the hood at Patrick Industries.  Patrick (PATK:NASDAQ) is a supplier to the RV, Marine, Manufactured Housing, and other segments of the broader Housing Industries. Their Investor Relations (IR) package is a useful resource in understanding that firm.  But it is also useful in understanding the true picture of the state of manufactured housing, in the context of a broader view of the economy, and other industries, as they compare or relate to manufactured homes potential.

 

This report will be done primarily through slides, from the Patrick IR package.  Some commentary are on select slides, with more below and linked.

PatrickIndustriesPATKnasdaqCompanySnapshotDailyBusinessNewsMHProNews

PatrickIndustriesPATKCompany2018SnapshotManufacturedHousingIndustryMHProNewsMarketPlatformsPatrickIndustriesRVsMarineManufacturedHomesIndustrialHousingMHProNews

MarketPlatformsPatrickIndustriesRVsMarineManufacturedHomesIndustrialHousingMHProNews

Patrick has facilities positioned close to most major manufactured housing markets. Note that MHProNews has no position in PATK, and is not commenting on them as an investment per se. PATK is one of the companies MHProNews tracks in its evening market report.

USEconomicFundamentalsPatrickIndustriesManufacturedHousingIndustryMHProNews

Patrick is not alone to point to the robust economy, notably taking off since the election of President Donald J. Trump. These are positive background facts that ought to point to far more robust manufactured home (MH) sales. Why isn’t MH doing better?

DemograhicTrendsAcrossEndMarketsPatrickPATKirManufacturedHousingIndustryMHProNews

RVindustryPatrickPATKmanufactruredhomeindustryMHProNews

PatrickPATK-RVRetailInventoryShipmentsDownturnProjectedManufacturedHousingIndustryMHProNEws

LeveragingMomentumCreationNewClassofManufacturedHomesManufacturedHousingInstituteMHILogoDailyBusinessNewsMHProNews600

PatrickPATKIndustryOutlookRVWholesaleShipmentsmanufacturedhousingIndustryMHProNews

While RVs and automotive have both taken a dip, there are factors at play in those industries that don’t always apply to manufactured homes. RVs are a ‘luxury’ item for most. Manufactured homes are more commonly purchased as primary housing, or as a secondary home. During an affordable housing, why would RVs outperform MH?

PatrickPATKirMHContentPerUnitManufacturedHousingIndustryMHProNews

PatrickPATKir-GrowingHousingDemandManufacturedHousingIndustryHousingStartsMHpercentageNewHomeStartsMHProNewsIndustryTrendsFavorableOpportunitiesButManufacturedHousingIndustryLeadersFailtocapitalizeMHProNEws

PatrickPATKirManfuacturedHousingWholesaleShipmentsManufacturedHomeProductionShareofSingleFamilyHousingIndustryUnderperformingMHProNews

 

 

Note that Clayton Homes, 21st Mortgage, other Berkshire Hathaway connected brands, and the Manufactured Housing Institute (MHI) have been repeatedly invited to comment on, clarify, or refute concerns we have raised in reports like the one linked below.

 

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. Why hasn’t Allen told his readers how that cost them money? https://www.manufacturedhomelivingnews.com/bridging-gap-affordable-housing-solution-yields-higher-pay-more-wealth-but-corrupt-rigged-billionaires-moat-is-barrier/

PatrickPATKirHousingStartsWarrenBuffettBerkshireHathawayManufacturedHousingIndustryMHProNews

PatrickIndustriesPATKWikiMHproNews

 

While the video below doesn’t mention antitrust, it does specify several other federal issues that Clayton Homes, 21st Mortgage Corp, and Vanderbilt Mortgage and Finance (VMF).  Views on this video have more than tripled since it was first promoted by MHProNews.

 

 

Those in the Knoxville metro and Arlington, VA have routinely declined doing so in the past two years, although prior to that, they used to reply promptly to MHProNews inquiries. Why the change?  Were the questions too uncomfortable?

MHIlogoMonopolisticHousingInstituteLogoManufacturedHousingInstituteLogoMarch2019ProductionShipmentReport

3ErasMobileHomesManufacturedHomesManufacturedHousingImprovementActEraSkylineChampionShipmentProductionGraphicMHProNews

In 1998, manufactured homes (MH) outsold RVs by some 3 to 2. In 2017, RVs outsold MHs by some 5 to 1. RVs recovered far more quickly from 2008. The facts raise questions. One, is the effectiveness of MHI as the post-production or ‘umbrella’ association in the country. The other question is more sobering. Has Buffett-Berkshire “Moat” strategies kept manufactured home production at historically low levels to allow a few big boy brands to consolidate others at a discounted ‘value’ by MHI insiders?

MHARR Launches “Fighting Discriminatory Zoning Mandates” Manufactured Housing Project

MHARRshipmentProductionMarch2019ManufacturedHousingReportMHProNews

While MHI in their monthly shipment report doesn’t deny the decline, neither are they addressing the underlying causes, nor have they proposed a remedy via their messages to the industry. Why not?

ManufacturedHousingInstituteLogoMHIVideoStillMHIPromotionalClaims

 

From the early days of this publication, MHProNews featured content from state associations and both national trade groups.  These sources did not always agree with each other.  That was part of the origin of our phrase, “We Provide, You Decide.” MHProNews provided the comments of MHI, the Manufactured Housing Association for Regulatory Reform (MHARR), and members of MHEC – the Manufactured Housing Executives Council, made up of the bulk of state associations.

 

MHIMHECMHARRlogosWeProvideYouDecideManufacturedHOusingMHProNews487

 

MHI, and Berkshire brands were among those that once sponsored this website.  Perhaps due to our questions and reports, they stopped sponsoring and advertising on MHProNews, which is their right. What is not their right are allegations that they obliquely organized a boycott to discourage sponsorship of this site, if true, that could be an antitrust violation.

But as or more important is why would the Arlington, VA based MHI trade group do so, when we were a multiple year MHI member? Why did those who previously praised our work, turn against us? Given that the thrust of our effort for years has been focused on practical solutions for sustainable, ethical manufactured home industry growth, does that provide an insight on the motivations for the Omaha-Knoxville-Arlington axis’ efforts to marginalize MHProNews?

Why doesn’t MHI have this video below, first shown on Fox Business, prominently on their website?

 

 

Rephrased, are these additional pieces of evidence that Berkshire, Knxoville metro based Clayton Homes, 21st Mortgage, and some key MHI members working to suppress the industry’s performance?

That is a logical conclusion is that our reports could led an open-minded researcher to conclude.

Quotes that often come from past or present MHI members – like those that follow – would support that contention.

 

MHCommunitiesOfAZNealTHaneyPresidentWhyTheyQuitManufacturedHousingInstituteMHIDailyBusinessNewsMHProNews600

MarkWeissDTSQuoteManufacturedHousingAssocRegulatoryReformMHARRDailyBusinessNewsMHproNews

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. Our coverage has been based upon our LLC’s own research and work, without favor.

SoTheAssociationMHIIsNotThereFortheIndustryUnlesstheinterestsoftheBigBoysJointheIndustry'sMartyLavinMHIAwardWinnerQuoteMHProNews

MHProNews looks at the facts, considers the sources, and follows the evidence. MHI earlier last year, and for years before, MHI routinely replied promptly to all inquiries. But since we’ve spotlighted the problems and concerns, they’ve gone silent. Why? If the facts are on their side, why not make offer a cogent explanation?

FollowThe MoneyPayMoreAttentionToWhatPeopleDothanwhatTheySaySpySea72MartyLavinYachtManufacturedHousingINdustryProMHProNews

Ask yourself. Do these Marty Lavin dictums apply in the case of concerns that MHI is posturing effort, but failing to deliver what they claim, in order to promote industry consolidation that benefits a few at the expense of the many?

UnderstandingWarrenBuffettCastleMoatMetaphorsQuotesDailyBusinessNewsMHProNews

Never forget that even during medieval times, castles and their moats were in fact breached.

DannyGhorbaniFormerMHIVpQuoteFoundingMHARRPresidentQuoteDailyBusinessNewsMHProNews

The full Patrick presentation is available as a download from this link here.

 

LATonyKovachHenryFordQuotesPrettyPicturesAchieveGoalsDailyBusinessNewsProNews

News has been described as the first draft of history. That’s today’s latest edition to the manufactured home industry’s turbulent history, what we’ve dubbed: “News through the lens of manufactured homes, and factory-built housing” © where “We Provide, You Decide.” © ## (News, analysis, and commentary.)

 

ManufacturedHousingProNewsMHProNewsConfidentialTipsDocumentsNews

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 or Comments or Letter to Editor 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.

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

1) To sign up in seconds for our MH Industry leading emailed news updates, click here.

ManufacturedHomeIndustry#1HeadlineNewsMHProNews

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.

2) To pro-vide a News Tips and/or Commentary, click the link to the left. Please note if comments are on-or-off the record, thank you.

3) Marketing, Web, Video, Consulting, Recruiting and Training Re-sources

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.

Related Reports:

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

Manufactured Home Communities’ Dodd-Frank Moment Looms, Senator Elizabeth Warren Takes Aim at Several Manufactured Housing Institute Community Members

John Grissim Guides Author Finger Pointed at 21st Mortgage Corporation, Notorious Tim Williams Letter Cutting Off Retailers

Representative Ilhan Omar’s Bill Would Regulate Manufactured Home Community Owners

 

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

Dramatic, But Misleading? Manufactured Home Marketers Eye-View of Recent Tornado Deaths in Oklahoma, Alabama

“Game On” – “Fighting Discriminatory Zoning” “Moral Obligation” Fix “Worsening Nightmare” – State Associations Entering Spotlight

 

Shocking, True State of the Manufactured Housing Industry, plus Solutions for Profitable, Sustainable Growth – May 2019

“Lead, Follow … Or Get Out of The Way”

“The Illusion of Motion Versus Real-World Challenges”

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

 

 

 

 

 

 

 

Wheel Estate – Manufactured Home Consumer – Special Shopping Report

May 27th, 2019 Comments off

 

WheelEstateManufacturedHomeConsumerSpecialShoppingReportDailyBusinessNewsMHProNews

While there are arguably market-manipulations afoot that impact manufactured housing, it would be inaccurate to pin the responsibility for all lost sales on a ‘rigged system.’  Retailers and communities can make a difference in their local market. Rephrased, we believe that individual companies do have a level or responsibility for doing what they can in their market, as this teaser will outline.

 

 

An investor recently called MHProNews to get some tips on shopping for a new HUD Code manufactured home or a modular home. Tips were duly provided, along with suggested reading.

That investor is planning to buy one or two homes initially for property owned, which will then be resold. As stated, that investor will pay cash, no financing necessary.  This isn’t hypothetical, or a mystery shopper, it is a real and serious buyer.

He checked in earlier to say that he’s since shopped 7 different manufactured home locations. He’s made and is making notes. Some of those who he’s shopped are independents, others are vertically integrated chain retailers of one of the big 3 or other companies.

Initially impressed with some retailers, that shopper said he discovered that some did not return follow up calls for more information.

Others, who asked him to ‘register’ upon arrival at their retail sales office, never followed up by phone or otherwise – even though they had completed contact information.

 

2 Upcoming Special Reports

There will be a series of special reports on manufactured home marketing and selling. That manufactured home shopper plans to provide a detailed, written report in June, which MHProNews will feature.

We will also provide a report tomorrow on manufactured home marketing and sales. Stay tuned for both.

ManufacturedHomeIndustry#1HeadlineNewsMHProNews

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.

That’s today’s ‘almost midnight’ edition of manufactured home “Industry News, Tips, and Views Pros Can Use” © where “We Provide, You Decide.” © ## (News, analysis, and commentary.)

 

ManufacturedHousingProNewsMHProNewsConfidentialTipsDocumentsNews

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 or Comments or Letter to Editor 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.

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

1) To sign up in seconds for our MH Industry leading emailed news updates, click here.

ManufacturedHomeIndustry#1HeadlineNewsMHProNews

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.

2) To pro-vide a News Tips and/or Commentary, click the link to the left. Please note if comments are on-or-off the record, thank you.

3) Marketing, Web, Video, Consulting, Recruiting and Training Re-sources

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.

Related Reports:

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

 

“Lead, Follow … Or Get Out of The Way”

Shocking, True State of the Manufactured Housing Industry, plus Solutions for Profitable, Sustainable Growth – May 2019

 

 

 

 

 

 

 

Dramatic, But Misleading? Manufactured Home Marketers Eye-View of Recent Tornado Deaths in Oklahoma, Alabama

May 27th, 2019 Comments off

 

DramaticMisleadingManufacturedHomeMarketersEyeViewRecentTornadoDeathsOklahomaALMHProNews

Still from ABC News video, further below.

The manufactured home industry will arguably not achieve its potential until education becomes a core element of the industry’s ‘marketing.’

 

This column won’t go into the de facto challenges caused by a lack of proper engagement from the industry’s post production sector with the mainstream media to debunk misconceptions, other than to link to a summary report on that topic from earlier today.

There are a variety of marketing and sales methods, which yield a range of results. They are utilized because someone thinks them worthwhile, and likely believes that it is producing enough business to meet their goals and desires.

This report will spotlight an issue that live audiences from the east to west, from north to south have told our publisher is one of the biggest fears that cause someone from buying a manufactured home.  It’s fear of storm-related deaths.

 

 

Indeed, if you watch reports like the one above, and here comments like a ‘mobile home park was leveled,’ it makes the public’s concern understandable.

Which is why one report every so many years by MHI isn’t enough.

What’s worse is our follow up on reports by media and researchers routinely reveal that MHI has not contacted them to correct the record or provide a factual and evidence-based context for losses.

 

ManufacturedHousingInstituteTornadoDailyBusinessNewsMHProNews

TimWilliams21stMortgageCorpGoodArgumentsQuoteRespondEveryStoryDailyBusinessNewsMHproNews

 

So, once more, MHLivingNews has issued a new report that specifically deals with this issue, based upon facts, evidence, third-party research, and common sense. See that, linked below.

 

 

While this can be successfully addressed at the local level, the industry nationally will not break free of its lethargy until such issues are routinely addressed and repeatedly corrected, so that the public grasps reality instead of the fear that ‘if it bleeds, it leads’ headlines engenders. With 7 months of declining new manufactured home shipments during an affordable housing crisis, isn’t it time for state and MHI association members to ask for a shakeup in how things are being handled?

By the way, the report linked here and above has a far more responsible mainstream news video from CBS News, plus a broad fact check that addresses the concerns of millions, head on with the evidence.  It is produced for sharing with the general public.  By the way, note who is leading the way on reports that debunk the tornado concerns?

TornadoDeathsMobileHomes2019-05-27_1437SearchResltsManufacturedHomeProNews

Hint. It’s MHLivingNews. We do, while others posture.

That’s tonight’s edition of “News through the lens of manufactured homes, and factory-built housing” © where “We Provide, You Decide.” © ## (News, analysis, and commentary.)

 

ManufacturedHousingProNewsMHProNewsConfidentialTipsDocumentsNews

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 or Comments or Letter to Editor 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.

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

1) To sign up in seconds for our MH Industry leading emailed news updates, click here.

ManufacturedHomeIndustry#1HeadlineNewsMHProNews

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.

2) To pro-vide a News Tips and/or Commentary, click the link to the left. Please note if comments are on-or-off the record, thank you.

3) Marketing, Web, Video, Consulting, Recruiting and Training Re-sources

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.

Related Reports:

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

 

“Lead, Follow … Or Get Out of The Way”

Shocking, True State of the Manufactured Housing Industry, plus Solutions for Profitable, Sustainable Growth – May 2019

 

 

 

 

 

 

 

City Permits Some Manufactured Home Replacements for Tornado Ravaged Conventional Housing

May 23rd, 2019 Comments off
BattleInCityOverPermittingManufacturedHomeReplacementsforTornadoRavagedConventionalHousing

Still from video posted below.

A month after tornadoes ripped through Alto, Texas, many were left homeless as their residences were damaged or destroyed.

 

Last week, in a special city council meeting, the Alto city council voted to allow manufactured homes to be used as replacement homes for residents living there.

The homes were being provided by a local church, and dozens have signed up hoping to obtain one of those homes.

But that doesn’t mean that the decision was popular with numbers of Alto’s citizens, as the video report posted here from CBS 19 reflects.

 

 

In this situation particularly, we had a family that lost their home and we were able to purchase them a two bedroom, one bath HUD-manufactured mobile home,” said Ann Henley, employee of the River Church. “And we’re trying to replace it on their lot here in Alto.”

Henley said the church was been gifted with money to assist families impacted by last month’s natural disaster. They have purchased 6 manufactured homes, and at that time had already placed three of the homes on designated lots.

We have three more that they’re trying to get their lots cleaned up,” Henley said. “We’ve replaced about seven or eight roofs so far and we have about five or six lined up to replace the roofs in the next week or two.”

It’s one of those notes of positive irony. Conventional housing was sadly reduced to rubble in many cases, and manufactured homes were the quick and positive solution.

 

AltoTXmanufacturedhomeStreetNextToOlderConventionalHousingMHProNewsMHIMembersChangingPerceptionOfManufacturedHousingMHILogoClaytonHomesLogoBerkshireHathawayLogoMHProNewsBloombergShipmentProductionDataManufacturedHousingMHProNews2019-05-16_1057

 

But the resistance in that town council meeting was present, and slinging the ‘t-word’ was part of the process.

You can pull onto Putman Avenue and the trailer is the biggest thing on the road there now,” one resident in the news video said. “I don’t think that’s what we want, certainly I don’t in that neighborhood and I don’t think that’s what we want for the city.”

 

TrailerHouseMobileHomeManufacturedHomeFactoryBuiltHousingEvolution101MHProNews-MHLivingNews

You must meet people where they are. Terminology must be taught and caught. Make a habit of using the correct terminology.

 

I think our biggest concern are basically the people that have been misplaced and that are basically homeless and getting them into a house as quick as possible,” Henley said. “Unfortunately, there are a lot of people in Alto who are very low-income and even if they did own their home, they weren’t able to afford home owner’s insurance. They’re just in a bad situation and we’re just trying to help them as best as we can.”

This scenario of manufactured housing being the obvious solution, but encountering local resistance, is playing out in various ways from coast-to-coast.  It will be part of an upcoming special report on MHProNews. Watch for it.

That’s tonight’s last look at “News through the lens of manufactured homes, and factory-built housing” © where “We Provide, You Decide.” © ## (News, analysis, and commentary.)

 

ManufacturedHousingProNewsMHProNewsConfidentialTipsDocumentsNews

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 or Comments or Letter to Editor 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.

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

1) To sign up in seconds for our MH Industry leading emailed news updates, click here.

ManufacturedHomeIndustry#1HeadlineNewsMHProNews

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.

2) To pro-vide a News Tips and/or Commentary, click the link to the left. Please note if comments are on-or-off the record, thank you.

3) Marketing, Web, Video, Consulting, Recruiting and Training Re-sources

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.

Related Reports:

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

 

GregSchoorSevereStormsServicesCoordinatorNationalWeatherServiceManufacturedHomeLivingNewsDailyBusinessNewsMHProNews

“The Illusion of Motion Versus Real-World Challenges”

MHARR Launches “Fighting Discriminatory Zoning Mandates” Manufactured Housing Project

“Lead, Follow … Or Get Out of The Way”

 

 

 

 

 

‘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.)

 

ManufacturedHousingProNewsMHProNewsConfidentialTipsDocumentsNews

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.

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

1) To sign up in seconds for our MH Industry leading emailed news updates, click here.

ManufacturedHomeIndustry#1HeadlineNewsMHProNews

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.

2) To pro-vide a News Tips and/or Commentary, click the link to the left. Please note if comments are on-or-off the record, thank you.

3) Marketing, Web, Video, Consulting, Recruiting and Training Re-sources

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.

Related Reports:

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

Multibillion Dollar Opportunities Knock in Solving Affordable Housing Crisis

Joe Stegmayer, George F. Allen, Manufactured Housing Institute Slogans, Slump, Slurs, Solutions

Clayton Homes, 21st Mortgage Corp, Vanderbilt Mortgage and Finance – Investor Lessons Learned

Manufactured Home Community Case Study, UMH Properties, Lessons for Independent Community Owners, Investors

Nathan Smith, SSK Communities, Manufactured Housing Institute Leader, Profitably Correcting the Record

 

“Lead, Follow … Or Get Out of The Way”

HUD Code Manufactured Home Production Decline Continues, May Updates