Posts Tagged ‘mhpronewws’

Clayton Weathers Storm, Turns $706M Profit in 2015, 2016 Looking Good

May 6th, 2016 Comments off

clayton_knoxnews_shelley_kimel_creditDespite all the criticism aimed at Berkshire Hathaway’s Clayton Homes over allegations of predatory and discriminatory lending through its two finance wings, marketing director Carl Hill said Clayton has had a very good spring and continued year-over-year growth, according to reuters. As MHProNews has reported monthly, manufactured home (MH) production has been on a rebound since Aug. 2011, and is currently up 25 percent over last year at this time.

Noting that nobody wins if an MH has to be repossessed, Hill said Clayton sold over 34,000 homes last year, resulting in revenue of $3.58 billion, producing a pre-tax profit of $706 million.

He also said one-third of Clayton’s borrowers are Millennials, mostly renters and those with lower credit scores. The next largest percentage are retirees looking to downsize. The prices for the MH start below $50,000, but Hill said the “vast majority sell for under $150,000.”

Speaking at the annual Berkshire Hathaway shareholder’s meeting, Berkshire Chairman Warren Buffett, who had praised CEO Kevin Clayton in Feb. during the firestorm of criticism, said only 2.64 percent of Clayton’s MH loans went into default last year, although the company did lose $157 million on 8,444 foreclosures. What percentage of these originated by other lenders was not disclosed.

As MHProNews reported April 29, 2016, Clayton expanded its reach into the site-built home building market by acquiring middle-Tennessee builder Goodall Homes, its second such acquisition following last year’s $50 million purchase of Chafin Communities of Georgia, as reported here Nov. 2, 2015. ##

(Editor’s Note: for a related story on Warren Buffett, click here.)

(Photo credit: knoxnews/Shelley Kimel)

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

Multifamily Starts Still Strong

April 16th, 2013 Comments off

MHProNews has learned from the National Association of Home Builders (NAHB) figures released by HUD and the Census Bureau indicate total housing starts—single-family and multifamily– rose by seven percent in March, propelled by a 31.1 percent increase in new multifamily construction. As we have reported several times earlier, the rental market is currently very strong and growing. Meanwhile, single-family construction fell 4.8 percent from the previous month, and permit issuance dropped 3.9 percent. NAHB Chief Economist David Crowe, calling it a mixed bag because of the opposite directions of the two markets, says, “The three-month moving average for single-family starts remained unchanged at 628,000 units in March – which is right on pace with NAHB’s forecast for a 25 percent gain in new-home production in 2013.” Regionally, the Midwest, South and the West all gained in single and multifamily housing starts, while the Northeast region fell. Conversely, the Northeast posted a gain in issuance activity, while the other three regions experienced a decline.

(Photo credit: bloombergbusinessweek)