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Sobering Federal Report on Manufactured Housing Lending – Retailers, Communities, Producers, and Finance Companies – Take Note

January 17th, 2019 Comments off

 

SobertingFederalReportOnManufacturedHOusingLendingRetailersCommunitiesProducersFinanceCompaniesTakeNoteBCFPDirectorKathleenLKraningerMHProNews

The rebranded Bureau of Consumer Financial Protection – formerly the CFPB, now the BCFP – has produced a January 2019 report that contains new data regarding manufactured housing lending.

 

There are over 200 pages. We’ll simplify that for busy readers.

MHProNews will hereby provide the entire document here as a download, while give readers like yourself the most relevant pull-quotes for manufactured housing.

After the quoted sections and tables, the Daily Business News on MHProNews will provide a brief and relevant analysis for manufactured home industry professionals, investors, affordable housing advocates, plus public elected or appointed officials.  The graphics are from the name of the report, that included the following quoted items.

 

BureauConsumerFinancialProtectionJan2019AbilityRepayQualifiedMortgageRulesAssessmentReportDailyBusinessNewsMHProNewsMessageFromKathleenLGrningerDirectorBureauConsumerFinancialProtectionAbilityToRepayQMReportDailyBusinessNewsMHProNews

 

7.2.1 Data and methods

Figure72CountyLevelMarketShareofSmallCreditorsin2014HMDABureauConsumerFinancialProtection

2014…

This analysis uses the non-public HMDA data described in Chapter 1.350 In the context of this chapter, any reference to “lender(s)” or “creditor(s)” only refers to HMDA reporting lenders. Estimates of small lenders in this analysis are not the complete universe of mortgage originators. The Bureau estimates that there are over 4,000 depository institutions which originate mortgages but are not HMDA reporters. Most, if not all, of HMDA non-reporters would qualify as small creditors due to their small size…

Figure73CountyLevelMarketShareofSmallCreditorsin2016HMDABureauConsumerFinancialProtection

…2016. Fewer lenders, ‘consolidation.’

Table 38 reports mortgage originations by small and non-small creditors in rural counties.366 Among small creditors, the share of total originations occurring in rural areas is much larger than for non-small creditors. This appears to be consistent with the higher likelihood that small creditors operate only or predominantly in rural or underserved areas compared to non-small creditors. The 2016a columns suggests that without the 2016 threshold amendments, the rural share of small creditor originations would have stayed the same instead of decreasing to 21…

—–

Foonote 366) The Bureau publishes a yearly list of rural and underserved counties that are exempt from certain regulatory r equ irements of the Truth in Lending A ct. Bureau of Con sumer Fin. Prot., Rural and Underserved Counties List, available at https://www.consumerfinance.gov /policy-compliance/guidance/implementation-guidance/rural-andu n derserved-counties-list/ (last v isited Dec. 31, 2018) (for the current and previous y ear’s lists).

EstimatedNumberHMDAReportingMOrtageLendersOriginationsRuralCountiesJan2019BCFPReportDailyBusinessNewsMHProNews

…percent in 2016 with the amendments. The 2016 amendments did however increase the share of small creditors operating in rural areas due to being more inclusive of larger lenders. The amendments in 20

Table 39 reports manufactured housing mortgage originations by small and non-small creditors. Manufactured housing loans make up a larger share of small lenders’ originations compared to non-small lenders. Similar to rural loan originations, these patterns are consistent with small creditors being more likely to provide access to mortgage credit for manufactured housing compared to larger creditors although the share or manufactured originations that make up a small creditor’s lending has been declining since 2012.

 

Table39EstimatedNumberHMDAReportingManufacturedHousingMortgageLendersBCFPJan2019

What Does This Reveal for MHPros, Policy Wonks, and Advocates?

Lenders in the manufactured housing space has declined during the period reported.

Put differently, manufactured lending has contracted, just as the number of retailers have shrunk.  Here is the key line.

“…small creditor’s lending has been declining since 2012.”

This has occurred in the aftermath of Warren Buffett led Berkshire Hathaway’s acquisition of Clayton Homes, other producers, retailers, and associated lenders, notably 21st Mortgage Corp and Vanderbilt Mortgage and Finance (VMF).

While making noise for several years about making the Duty to Serve by the Government Sponsored Enterprises (GSE) a reality, what the BCFP data reflects is that the opposite is taking place.

Manufactured housing professionals, investors, and advocates? This is another wake up call.  For more details, see the related reports, linked below the byline and notices.  That’s this afternoon’s Manufactured Housing “Industry News, Tips, and Views Pros Can Use,” © where “We Provide, You Decide.” © ## (News, analysis, and commentary.)

 

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SoheylaKovachDailyBusinessNewsMHProNewsMHLivingNewsSubmitted by Soheyla Kovach to the Daily Business News for MHProNews.com. Soheyla is a managing member of LifeStyle Factory Homes, LLC, the parent company to MHProNews, and MHLivingNews.com.

 

Related Reports:

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Proposed Changes to Dodd-Frank in New Federal Budget Offers Hope to Manufactured Housing Industry

December 15th, 2014 Comments off

u-s-capitol-building-credit=dc-shpo-posted-daily-business-news-mhpronews-com-For awhile, it seemed doubtful that any changes to the Dodd-Frank bill governing financing for residential or manufactured housing (MH) might pass. Now, there seems to be a ray of hope for the MH industry. The evidence is a rider attached to the 2015 federal budget passed late on the evening of Thursday, December 11, that reversed the Dodd-Frank rule concerning the purchase and sale of derivatives.

According to Paul Krugman, writing in the New York Times, “Dodd-Frank forbid banks from dealing in exotic securities, the kind that played such a big role in the financial crisis. In itself, last week’s action wasn’t decisive, but it was clearly the first skirmish in a war to roll back much, if not all of the financial reform.”

This should give hope to supporters of a bill such as HR 1779 and S 1828, the Preserving Access to Manufactured Housing Act, might be passed in the upcoming 2015 legislative sessions.

Krugman points out that “it’s hard to find Republicans expressing major reservations about undoing reform.” However, he says that few Democrats actually believe that undoing Dodd-Frank is a good idea.

That opinion was vociferously expressed by Senator Elizabeth Warren who tried to block the Dodd-Frank revision from being included in the new $1.1 trillion federal spending bill. Warren’s high-profile budget move failed, but dramatically raised her standing among the Democrats’ left-of-center party base, and it couldn’t have come at a worse time for Hillary Clinton’s anticipated 2016 presidential candidacy.

According to the New York Post, This Warren thing puts Hillary in a horrendous position.” The Post continued by saying a prominent New York Democratic consultant involved in presidential politics stated, “Wall Street money has always been Hillary’s bread and butter, and she’s been counting on it for 2016. Now, because of the Senate debate, she’ll be forced to say where she stands on things like the derivatives rule and Wall Street’s continuing effort to repeal Dodd-Frank.”

The debate concerning Dodd-Frank continues. Although some Democrats oppose any changes, with the Republicans gaining control of both the House and the Senate, the prospect of more changes to that bill is promising.

Thus the outlook for a manufactured housing backed reform of parts of Dodd-Frank in 2015, ala the Manufactured Housing Institute led HR 1779 and S. 1828, now looks brighter. ##

(Photo credit: Photo courtesy of the DC SHPO and NPS.gov)

sandra-lane-daily-business-news-mhpronews-com-75x75-Article submitted by Sandra Lane to – Daily Business News – MHProNews.

“Fearless” Senator Elizabeth Warren, the CFPB’s ‘Mama’ buttresses potential 2016 presidential cred

December 1st, 2014 Comments off

senator-elizabeth-warren-credit=ap-abcnews-posted-daily-business-news-mhpronews-com-ABC News tells MHProNews that Massachusetts Democratic Senator, Elizabeth Warren is admired by liberal loyalists and doesn’t mind taking on anyone – including President Obama – when she thinks they are wrong.

Warren is known as a key supporter – or Mama – of the agency that became the Consumer Financial Protection Bureau (CFPB).

As most MH pros know, the CFPB has harmed access to lending on manufactured homes. Some sizable firms, such as Yes! Communities, exited their own ‘captive lending’ program over concerns surrounding the ability to comply. They and giant U.S. Bank’s recent exit from direct lending on MH, are but two examples of the harm done by CFPB regs to MH consumers and sellers.

But Warren and die-hard CFPB champions remain undaunted.

Massachusetts Democratic Party chairman Philip Johnston said Warren is “absolute fearlessness” in the face of opponents. “CEOs of banks usually intimidate members of the Senate because they speak a different language,” Johnston said. “Elizabeth speaks that language … and she calls them out.

In spite of denials, a possible signal that Warren is preparing for a possible presidential run is her first overseas trip as a U.S. Senator. She made a trip to Israel, the West Bank and Jordan, meeting with Palestinian President Mahmoud Abbas and Israeli Prime Minister Benjamin Netanyahu.

While some think Hillary Clinton is unstoppable, the same was thought in 2008 when she was upset by Barack Obama for the Democratic nomination for president. Manufactured housing professionals are wise to keep an eye on this rising star in the Democratic Party as the 2016 campaign for president is unofficially underway. ##

(Photo credit: AP)

LA Credit Unions looking at Manufactured Home Lending

August 22nd, 2011 Comments off

Terri J. Fowlkes, Director of Community Development Investments at the National NATFEDCUInsight reports that the economic downturn continues to challenge financial institutions nationwide, but credit unions in Louisiana can take advantage of the opportunities to expand mortgage lending. This is particularly true among low- and moderate-income populations, says Terri J. Fowlkes, Director of Community Development Investments at the National Federation of Community Development Credit Unions. “With interest rates holding steady at rock-bottom levels, credit unions need to diversify their portfolios by continuing to make mortgages and increase their operating income,” Fowlkes stated. “Responsible loans made to qualified members provide credit unions with a much better yield than they’ll get from most other investment vehicles, and helps members build wealth through home ownership.” Fowlkes acknowledged the difficulty many credit unions have in making loans where no secondary markets exist, particularly for non-traditional loans such as Individual Tax Payer Identification Number (ITIN) loans, manufactured housing loans, and coop loans. The Federation and the Louisiana Credit Union League are exploring ways to increase credit union mortgage lending through utilization of the Federation’s CDCU Mortgage Center Secondary Market. “The Federation is the only credit union organization offering secondary (alternative) capital to credit unions nationwide,” Fowlkes stated.

(Photo credit: NATFED)

MHARR officially supports Dodd-Frank and SAFE Act reform by MHIndustry

August 5th, 2011 Comments off

Danny Ghiorbani photo courtesy of MHARR posted MHMSM.com MHProNews.com MHARR President Danny Ghorbani spoke with MHProNews.com exclusively this morning to make the following ‘on the record’ statement. “We (MHARR) fully support all the efforts that retailers, communities, finance companies and state associations are trying to do to modify the Dodd-Frank and SAFE Act legislation that harms our industry’s post-production sales efforts. Conversely, we expect the other segments of the Industry to fully support all that we are trying to do to implement the Manufactured Housing Improvement Act of 2000 (MHIA 2000).” MHARR will be releasing information soon on their analysis of the latest June shipment numbers, which have once again slid lower. Ghorbani thanked MHProNews.com for our balanced coverage of Industry issues, including Industry news analysis.

(photo credit: MHARR)