Posts Tagged ‘manufactured housing loans’

Joseph Stronks Joins Manufactured Home Industry Lender as Chief Operating Officer

July 24th, 2018 Comments off



Community West Bancshares, (NASDAQ:CWBC), parent company of Community West Bank, announced that T. Joseph Stronks has joined the bank as Executive Vice President, Chief Operating Officer,” said the company via a release to the Daily Business News.

Stronks will lead the Central Operations, Information Technology and Facilities departments of the bank.

It is with great pleasure that we welcome Joseph to the Community West Bank executive team,” said Martin E. Plourd, President and Chief Executive Officer. “His wide range of professional experience and leadership in managing banking operations, information technology, and core application technology will serve our bank very well as we continue to grow our community banking presence throughout Ventura, Santa Barbara and San Luis Obispo counties.”

The principal business activities of Community West Bancshares are Relationship business banking, Manufactured Housing lending and Government Guaranteed lending.

Community West Bancshares is a financial services company with headquarters in Goleta, California. The Company is the holding company for Community West Bank, the largest publicly traded community bank serving California’s Central Coast area of Ventura, Santa Barbara and San Luis Obispo counties. Community West Bank has seven full-service California branch banking offices, in Goleta, Santa Barbara, Santa Maria, Ventura, Westlake Village, San Luis Obispo and Oxnard and a loan production office in Paso Robles.

Before joining Community West Bank, Mr. Stronks most recently was Senior Vice President and Deputy Director of Operations at Rabobank. He also served as Executive Vice President and Chief Information Officer for Heritage Oaks Bank prior to its acquisition by Pacific Premier Bank in 2017. Mr. Stronks is a graduate of University of California at Santa Barbara, the Pacific Coast Banking School, and earned an MBA in IT Management from Western Governors University. He is a Certified Information Security Manager,” said the company. ## (News, analysis, and commentary.)

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War of Words? DC’s The Hill Congressional Blog on Manufactured Housing Finance Reform

July 22nd, 2015 Comments off

Plus1 Properties – original image credit. Cartoon by

While the Corporation for Enterprise Development’s (CFED) Doug Ryan nominally supports manufactured homes (MH) as affordable housing for low income consumers, his response to The Hill  about Rep. Steve Fincher’s call to ease the regulatory burdens on prospective purchasers of MH demonstrably misses the mark. As MHProNews and MHLivingNews publisher L. A. “Tony” Kovach points out in The Hill Congressional Blog today, Ryan said recently that longtime MH finance expert Dick Ernst knows more about MH financing. “Ryan said that weeks after Ernst and a non-Berkshire-Hathaway MH lender privately walked him through the realities of MH financing,” notes Kovach.

Congressman Fincher pointed out that payments on an MH personal property loan are typically less than rent on an apartment or house. Kovach says, “The reason for higher rates on MH is simple business math. The cost to originate a $35,000 loan is similar to the cost of originating a $350,000 loan. Since there are no federal guarantees for conventional MH lending, no real secondary market and thus no risk to tax payers – naturally the rates, points and fees for an MH lender need to be higher to have a chance to profit.” Unlike the traditional mortgage market, interest rates are not kept artificially low via federal supports of the GSEs, FHA or VA loans.

Current CFPB regulations have caused a number of smaller and low rate lenders, as well as huge U S. Bank, to leave the MH finance market because of regulatory burdens. Why aren’t lenders pouring into the market if it was so profitable (i.e. “predatory”)?


Click the image to go The Hill’s Congressional blog post to see and share this time sensitive article. The Senate will take this up again soon. Photo credit, WikiCommons.


While millions of MH loans have been made over the years, consumer complaints reported by the CFPB do not show MH lenders ranking high in originating or servicing. Even when MH consumers are forced by CFPB regulations to turn to 36 percent interest rate payday-style loans, we know of real world examples of their payments on an inexpensive home still being less than rent. So why shut the door on lenders making smaller loans and give a break to consumers on interest charges?

Rep. Fincher’s measure, The Preserving Access to Manufactured Housing Act (HR 650/S682) gives manufactured home owners the opportunity to sell their homes if it has a value that would be financed under $20,000. It also allows MH sales people the ability to help MH consumers in their purchase, much like a realtor does in a conventional mortgage scenario.

Kovach says, “That’s all good for homeowners, consumers and business. That’s good public policy. The Senate should promptly pass the bill, and/or CFPB should change their policies on MH lending ASAP.”   MH associations are encouraging industry members to read and share the article with their Senators and staffs, because it documents and refutes opposition arguments, point by point. The link to the full blog post on the Hill is here. ##

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

The Greenback Boogie – CFPB’s Manufactured Housing Appraisal Rule hits July 18, 2015

July 2nd, 2015 Comments off

cfpb-parody-logo-credit-plus1properties-cartoon-credit-MHProNews-com-(c)2015-all-rights-reserved-“The manufactured housing industry’s professionals are racing to contort themselves into yet another new shape to fit their federal masters.” So sayeth a company official off-the-record to MHProNews, as the new Consumer Financial Protection Bureau (CFPB) appraisal rules hits home on July 18th, 2015. 

State associations and the Manufactured Housing Institute (MHI) have been busily attempting to prepare their members for the implementing of these rules.  But as another industry manager said, “Only a small fraction of the manufactured housing industry’s members have been at a meeting where these appraisal related rules are being discussed.  Many companies remain entirely outside of any association affiliation.  How will they possibly all be prepared in time?  How can there not be some adverse impact of the [CFPB] rules on manufactured housing sales?” 

While the off-the-record comments are often dark, the on-the-record public statements of lenders, NADA and DataComp – who will all be front-and-center in compliance – suggests a higher degree of confidence.   The links below are to official statements by 21st Mortgage and Triad Financial Services, two of the major MH industry’s chattel (home only, or personal property) lenders. 

21st Mortgage’s Statement on the new CFPB Appraisal Rules

Triad Financial’s Don Sharp’s Statement on the upcoming July 18 CFPB Appraisal Rules

The third link is to a somewhat different topic, but also connected with the issue of appraisals.  Cody Pierce, President of Cascade Financial Services – an FHA and VA manufactured home lender –  explains why a percentage of loans fail to meet appraisals.

About Appraisals on FHA and VA Land Home Sales

MHProNews will continue to track and deliver updates on the critical finance-related regulatory and other issues that impact Manufactured Housing. In the mean time, why not share your views on these new rules with your Congressman or Senator? A sugestion on how, linked here. ## 

(CFPB logo parody credit  plus1properties; cartoon credit MHProNews © 2015)

l-a-tony-kovach-daily-business-news-mhpronews-Daily Business News brief submitted by, L. A. ‘Tony’ Kovach.

Sunday Morning Recap–April 5, 2015 to April 11, 2015

April 12th, 2015 Comments off

Sunday_morning_recapIn this week’s news, although we did not cover it, we are reminded of the power of nature as a tornado devastated a small town in Illinois. Otherwise, H. R. 650 may hit the House Floor this week. Can Tiny Homes site in MHCs? Modular housing being weighed in Boston, Australia, and South Carolina. Manufactured homes mean big savings in the Bay Area and Kentucky. MHC review board rules in community owner’s favor in CA. Manufactured Home production rises in Feb.

Monday April 6

Modular Facility to Replace Burned-out Classrooms

Boston Considering Massive Modular Housing

Tiny House in Manufactured Home Community Sparks Legal Debate

MHCV Nudges up; Dow, NASDAQ and S&P Gain Less

Manufactured Homes a Bargain in Bay Area

Tue., April 7

Modular Building Producer Expanding into Northwest

Couple Questions Tax Increase on pre-HUD Code Home

Kentucky Collaboration will Provide ENERGY STAR Manufactured Homes

MHCV Nudges Down; Dow, NASDAQ and S&P also Fall

Single and MultiSection Manufactured Home Production up in February

Wed., April 8

Manufactured Housing Component Supplier expects Uptick

Home Prices have Risen Monthly for over Three Years

M.Scott Welch Joins Patrick Industries Board

Two Financial Titans Have Fingers in the Pie of Manufactured Housing

City Council Tables Voting on Manufactured Home Siting

MHCV Notches Gain; Fed may Extend Brakes on Interest Rates

Potential for Modular Methods Down Under is Growing

Thurs., April 9

Manufactured Home Loans Tough to Find in North Dakota

Modular Building: Front End Savings, but Long Term Sustainability?

Mobile Alabama Sites Two Affordable Modular Homes

MHCV Slips as Investors Push the Dow, NASDAQ and S&P Slightly Up

Resident wants to Challenge Manufactured Home Site Rents

Fri., April 10

Tell your Congressional Representative to Vote Yes on H. R. 650

Executive Change at Manufactured Housing Component Supplier

Opening Day is Manufactured Housing Day

MH Retailer Fairfield Homes and Land High Standards attract local media attention

MHCV Slips as Investors Drive the Dow, NASDAQ and S&P into Positive Territory

Review Board agrees with Manufactured Home Community Owner

Brooklyn’s B2 Modular Tower to Resume Minus Modular

Sat., April 11

South Carolina Town Seeking Affordable Modular Housing ##

(Image credit: MHProNews)

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

TINs and what POTUS Obama’s immigration executive action means for Lenders, manufactured housing

November 24th, 2014 Comments off

julian-castro-housing-urban-development-hud-secretary-posted-daily-business-news-mhpronews-com-Manufactured housing (MH) retail, community and lending professionals know the Hispanic market has long been a strong and growing target audience for the industry. So when National Mortgage News (NMN) gives their 411 on what the president’s controversial executive action last Thursday might mean for housing lenders, MHProNews listened.

NMN‘s Evan Nemeroff stated, “…giving roughly 5 million immigrants at least temporary relief from deportation could conceivably ease lenders’ and borrowers’ qualms about mortgages to undocumented workers who qualify with individual taxpayer identification numbers, or TINs.

Nemoff points to HUD’s recently appointed Secretary Julian Castro – whose clear ties to Hispanics can’t be missed – saying the president’s Thursday announcement is “an important step toward fixing our broken immigration system.”

Even before this immigration reform was announced, nearly 11 million undocumented immigrants were eligible to qualify for mortgages using an individual taxpayer identification number,” Nemoff said, “which is assigned to them by the Internal Revenue Service for tax-filing purposes. However, very few lenders offered this product.

Citibank and Venta Financial Group are among housing lenders who have made loans using TINs. Some in MH finance have done so too.

Republican leaders have vowed to battle the president’s immigration move as a naked power grab, since there is no legislation behind it, as was the case with allegedly similar orders by Presidents Reagan and Bush 41.

The announcements and arguments by pro-Obama Administration sources fits the pattern of seeking to carve out supporters for their move, by offering enticements: in this case, the possible promise of more home loans and sales to Latinos.

Censure by Republicans – who control both House and Senate in 2015 – budget carve outs, holding up the Obama Administration’s judicial and other appointments are among the tools mentioned to foil the hotly questioned executive immigration action.

With the president no longer facing re-election, low poll numbers for him, anemic support among the population at large – even below 50% among Hispanics for the announced amnesty for 5 million illegals in the U.S. – seems of little concern to the president and many top Democrats.

Nor does it seem to be troubling to those favoring the amnesty move that the president himself repeatedly argued since 2009 that he doesn’t posses the authority under the Constitution he now claims to have.  Such statements are captured in the video shown above.

Time will tell if housing lenders – including those in MH – will bite on using TINs more to make more loans for such currently deemed ‘illegal immigrants,’ but Bloomberg and NMN suggest the perceived risks are now lower for those opting to do so. ##

HUD, finance, GSE reform and FHA related story on Julian Castro, linked here.

(Photo Credit: Julian Castro, HUD)


MH Industry Pros Respond to CFPB Report

October 8th, 2014 Comments off

richard_cordray_c-span2__creditWhile the Consumer Financial Protection Bureau’s recent report on financing the purchase of manufactured homes (MH) notes buyers of MH are often poor, elderly, rural and vulnerable to high-cost “chattel” (“home only,” personal property) loans, the bureau wants to ensure consumers have access to “responsible credit.” Their report, comments and the resulting controversies are the subject of a new Industry in Focus report, linked here.

Consumer Affairs reporter Truman Lewis says mortgage lenders generally disregard MH lending because the demand is not great, which leaves the door open to five national MH personal property lenders.

However, smaller regional and local MH lenders exist, but CFPB regulations restrict sales people from referring consumers to them for fear of violating CFPB rules.
Dan Rinzema, president of MHVillage and DataComp says the government regulation is misguided and does not help the market for the resale of manufactured homes, which would help make MH a competitive housing choice. Doug Ryan, Director of Affordable Housing Initiatives at the Corporation for Enterprise Development (CFED), a non-profit that supports affordable MH, echoes CFPB’s claim that borrowers are vulnerable to expensive loan products.

Some Washington insiders say the report stems from the stiff grilling CFPB Director Richard Cordray received Jan. 28, 2014 at the hands of the House Financial Services Committee’s Subcommittee, and point to a video of that hearing.

The 55-page report alleges that 68 percent of all MH purchase loans in 2012 were chattel loans compared to three percent of site-built home loans, and included that two-thirds of MH loans were eligible for traditional mortgages but chose personal property loans instead. Chattel loans are quicker to obtain, says the report, but have lower origination costs. Industry finance expert Dick Ernst, a principal at FinMarkUSA, says while the report notes the absence of a secondary mortgage market for MH, the cost to originate personal property loans is the similar regardless of the amount of the loan.

Meanwhile, the Government Accountability Office (GAO) report, in response to a request from the chairman of the House Financial Services Committee for an analysis of HUD’s implementation of the MHIA of 2000, says HUD has fallen short of encouraging Ginnie Mae to securitize manufactured home loans, which in turn reduces the availability of affordable MH.

The law firm of Bradley Arant Boult Cummings LLC said in a statement the CFPB report indicates the agency is showing interest in the MH industry which may lead to adjustments that could reduce burdens on the lenders and lower costs of credit to borrowers. Robert Williamson, of Hart King Law, says the paper may be a public recognition of the importance of MH to the consumer housing market, and may in turn stimulate a more robust MH market.

The Manufactured Housing Association for Regulatory Reform (MHARR) notes the report may be establishing a jumping off point for future CFPB activity, while the Manufactured Housing Institute (MHI) remarks the CFPB acknowledges the negative impact the Dodd-Frank Act, implemented in Jan. 2014, is having on the manufactured housing market.

Tim Williams of 21st Mortgage Corporation says the statement that 60 percent of chattel customers own their land and are therefore eligible for a conventional mortgage is incorrect, noting it is irresponsible of the CFPB to make such false statement. He says 26 percent of 21st’s borrowers say they own their land, but he is pleased the CFPB admits their regulations restrict credit to manufactured home owners.

When consumers are considering buying a site-built or a manufactured home, the two pieces of crucial information are the down payment and the monthly payment. MH sales people are restricted in what they can offer in response to such a question, while some believe it’s not a violation if a Realtor ® gives such information.

A chart from Fannie Mae demonstrates that even when the interest rate is higher for an MH, monthly payments often make the purchase of a manufactured home the lower cost option. The restrictions on MH salespeople helping consumers find financing can turn people away from even being interested in a manufactured home, further damaging the industry’s chances of offering affordable options, as Jason Boehlert, Senior VP of Government Affairs at MHI notes.

Major MH lenders have told MHProNews they have added staff to deal with the increase of applications being “shot-gunned” to multiple lenders, since the CFPB regulations took effect in Jan. 2014. This is increasing costs, all because MH retailers do not want to be accused of steering customers, which could result in heavy fines.

In addition, the lack of a secondary market for MH loans also limits mortgage lenders from making MH loans, which higher costs of funds makes the loan cost more to the borrower. The CFPB regulations result in lenders not accepting loans for under $25,000 because the cost to originate and service that sized loan makes them unprofitable.

While CFPB Director Cordray says, “Manufactured housing is a critical source of affordable housing for some consumers,” the regulations of the agency work is in the opposite direction—preventing potentially millions of Americans from buying durable, affordable, energy efficient homes that could stimulate the housing market and the jobs that would accompany the stimulus. ##

For the complete commentary, please click here.

(Photo credit: C-SPAN 2)

Freddie Mac to Work with Experienced MHC Lenders

May 16th, 2014 Comments off

Regarding Freddie Mac’s decision to begin purchasing and securitizing manufactured housing community (MHC) loans as posted here May 1, 2014, reports these will be commercial loans made to the community owners. David Brickman, Freddie Mac Multifamily executive vice president, said, “Manufactured housing communities are an affordable housing option for many low-income individuals, especially in rural communities where affordable apartments are less prevalent. Our financing can help to increase debt capital to rural areas and help provide housing options for underserved populations. Nearly half of nation’s manufactured homes are located in rural, non-metropolitan areas.” Initially the government-sponsored enterprise (GSE) will work with experienced MHC lenders and add other lenders farther along. As MHProNews understands, it plans to deal with professionally-managed communities. ##

(Photo credit: TriStar Estates)

LendSmart Open to Manufactured Home Loans in Southwest

April 10th, 2014 Comments off

Expanding into the Southwest, LendSmart Mortgage has opened a branch in Scottsdale, Arizona to service the Colorado, California and Texas markets, as informs The new lending center will offer conventional and specialty mortgages, including manufactured housing, and expects to write $25 million in loans by the end of the second quarter. Manager Brian Seligmiller says, “Our focus is to create stronger community and business partnerships by offering events, professional training, continued education classes and more business opportunities to the Southwest region.” ##

(Image credit:

Will the CFPB Please Stand for Affordable Housing?

October 18th, 2013 Comments off

DJ Pendleton, executive director of the Texas Manufactured Housing Association, says on Oct. 1 the Consumer Financial Protection Bureau (CFPB) clarified the rules defining what is considered a mortgage loan originator and what is not. A retail employee can only provide general information about buying a manufactured home. A more detailed and comprehensive list of permissible activities is expected to be forthcoming. Industry’s efforts to convince the Bureau to alter the APR rate and points and fees caps to avoid the high cost “predatory loan” issue did not succeed. Although the CFPB has agreed to look into the issue further, it will not change the caps before the Jan. 2014 date. For his Industry in Focus report, click here. Mark Bowersox, Executive Director of the Indiana Manufactured Housing Association/Recreational Vehicle Indiana Council (IMHA-RVIC), also noting CFPB’s refusals of MHI’s requests, says it is crucial to contact your representatives in Congress to urge them to pass HR 1779, the “Preserving Access to Manufactured Housing Act.” For his It’s Now or Never article, click here. Both the Oklahoma Manufactured Housing Association (OMHA) and the Wisconsin Housing Alliance (WHA) warn that any lease to buy or other lending related activities could trigger enforcement action by the CFPB. Additionally, the Manufactured Housing Institute (MHI) Retailers Council says remove all the financing signs unless you are licensed, and don’t base a decision on common sense. Meanwhile, Oklahoma and Texas are collaborating on a free lenders seminar for those who sell manufactured homes, probably after the first of the year. MHProNews and ManufacturedHomeLivingNews publisher L. A. “Tony” Kovach offers a 3 Step Plan for Resident Engagement on HR 1779—click here.

(photo credit: Horizon Land Co.)

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)