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Posts Tagged ‘preserving access to manufactured housing’

Nathan Smith, Prior MHI Chair, MHI Gov’t Relations Chair, SSK Communities vs. Lesli Gooch Manufactured Housing Institute SVP Position Statements

September 4th, 2017 Comments off

ManufacturedHousingInstituteMHIIndustryHasntAlwaysBeenForthrightWithItselfNathanSmithSSKCommunitiesPriorMHIChairGovtRelationsChairMHProNewsNathan Smith is often described as a jovial, successful professional.  He has attracted significant attention inside and outside of the manufactured housing (MH) industry. His SSK Communities are large enough to make the top 50 list among manufactured home community (MHC) operators.

So, when Smith speaks, MH industry pros listen.

Smith has become a serious player in the Democratic Party, but has told MHProNews that he has and is willing to support candidates from either the GOP or the Democratic political parties.

Smith has been active in a number of state associations, including Kentucky and Indiana.

But he is best known for his activity at the Manufactured Housing Institute (MHI), as a previous executive committee member, MHI’s Chairman, and as chair of their important Government Relations (GR) committee.

Smith has praised MHI’s staff on several occasions, verbally and in writing.

So, industry professionals will find the numerous disconnects between MHI’s Senior Vice President (SVP) Lesli Gooch, Ph.D. and what Smith said in this exclusive MHProNews video interview noteworthy.

Smith says in his own words that “the industry” – clearly speaking in the context was MHI, and using a common euphemism MHI applies to describe its self-described representation of the industry as a whole – has often not been “forthright” (i.e. honest) with itself.

 

NathanSmithSSKCommunitiesPriorMHIChairMHIGovtRelationsChairmanDailyBuisnessNewsMHProNewsBeProactiveNotReactive

Didn’t MHI fail to be proactive in the issue raised in the latest Masthead blog? See that, linked here. The Preserving Access to Manufactured Housing Act is being discussed in the video, among investment, general industry, and other topics. Still image from video below, credits Manufactured Homes, MHProNews.com.

Specifically, MHI has often not been “proactive” says Smith, in dealing with issues facing the manufactured housing industry.

While a statement like that may seem expected from the independent producers’ trade group – the Manufactured Housing Association for Regulatory Reform (MHARR) – to hear that so candidly from MHI’s then chairman is noteworthy.

Further, the partner in SSK Communities has made a strong statement that Gooch took exception on with respect to a video interview that Marty Lavin did with MHProNews.  Yet, Lavin and Smith made very similar points about the impact of CFPB regulations on manufactured home consumers.

Gooch vs. Smith – Disconnects

Gooch didn’t want to stress the under $20,000 loan point in promoting Preserving Access.  She wanted to promote instead a later revision made by MHI’s GR, to focus on lending in the under $70,000 loan range.

Was that a reactive move by Gooch?  Something that Smith said he wanted MHI to avoid in the future?

Another disconnect within MHI is their promoting their D.C. fly-in, which recently took a reported 60 percent drop in attendance from last year.

Smith advocated for something similar to what MHI/NCC member Frank Rolfe has too, as the video below reflects. Rolfe, as regular Daily Business News readers know, has stated that Preserving Access is a waste of time, based upon what his representative told him.

But perhaps the biggest bombshell in this 2 minute, 16 second video is Smith’s closing statement about manufactured home communities.  Some would call his comment an admission.  While it was delivered as a joke, wasn’t Smith making a point in a humorous way that he clearly believes in?

To see a more detailed review of the issues raised in this video interview with Nathan Smith, and a surprising admission by MHI President and CEO, Richard A. “Dick” Jennison in an approximately 20 second video, please click here.

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Manufactured Housing Institute members react-Allegations of Misleading MHI Housing Alert

June 5th, 2016 Comments off

MHI-MembersReact-MHIlogo-ManufacturedHousingInstitute-postedMHProNews-MHProNews has been fielding industry responses via email, phone and text to the report and analysis linked below.

Why did 4-9-2016 MHI Housing Alert mislead Association and industry members?

Based upon early feedback, MHProNews sent the following inquiry to MHI members for their response. The inquiry included the link above, and asked members of state and the largest national MH association – the Manufactured Housing Insitute – the following:

Q – “Off the record, do you think it appropriate to mislead members on an issue?”

Examples of replies by MHI members:

Never!!  The problem with misleading anyone is they take the “lie” as gospel and they in turn put their individual reputation and credibility on the line.

Taken a step further the person/organization just smashed their own rep & cred and they will bust their hump to ever be trusted again

One well-placed MHI member stated,

I can only guess that they are trying to stay on the “good side” of CFPB and the consumer groups.  Problem is, they don’t have (a) good side. 

This kind of legislation (HR 650/S 682) will never pass with a Democrat administration in place; (parenthetical not in the original, but was implied).

Using an example of a named high school coach, which was edited out to protect the source…

The coach “…had 3 rules for…the team. 

1) always tell the truth. 

2) think before action and finally 

3) lean on the foundation your parents gave you to do the right thing.”

A respected state association leader, replied to the MHI controversy by stating:

MHI is a joke, a bad one. One guy could make a phone call and fix all of the issues with CFPB. He owns 50% of the industry and refuses to lift a finger, they can kiss my ass if they think I am going to waste my time and energy. 

MHARR is a bunch whiny ass crybabies who waste their time seeking subsidies for this industry. We don’t need subsidies, we need to be left alone.”

MHARR & MHI Reactions

MHI and MHARR staff/sources were given a chance to react to these statements. 

A source close to MHARR texted the following Sunday afternoon:

Not sure why someone that’s informed about our industry and association and work would make such a comment? While there are associations that seek taxpayer subsidies, MHARR is not one them.” 

The same source elaborated, stating: 

MHARR fights to maintain the affordability of manufactured housing by opposing unreasonable and discriminatory regulation and by seeking even-handed treatment for MH financing via the statutory duty to serve.

MHI staff and an elected leader asked for reaction/comment failed to reply as of press time; but MHProNews  will bring any follow-up by the association to the industry’s attention.

Another source said in a call that MHI is at a standstill on The Preserving Access to Manufactured Housing Act (HR 650-S 682), and rather than risk a fall in attendance at their upcoming summer meeting, they put out their MHI Housing Alert (attached as a download on the link above) as spin to keep the appearance of momentum on their bill going.

Risking an MHI Profit Center?

Another comment provided a similar viewpoint, saying that MHI meetings have become a profit center for that national MH association. That source stated the key staffers are unwilling to candidly admit the challenges to most MHI members. He elaborated by explaining that in pre-meeting emails, MHI staff feared a drop-off in attendance at the summer meeting would result if the full truth were told to members.

MHProNews  was told members routinely fail to speak out publicly on an issue that the association has taken a stance on, “...you are either inside their circle, or not. As soon as you question leadership in a meeting or public, they’re routinely tagged as an outsider.  There is no question that insiders get better treatment than those who question a path; even if that questioning is with the good intentions of the association and industry in mind.”  

Who authorized the MHI memo?

MHProNews  sought confirmation of an an aspect to who ok’d the original MHI Housing Alert that sparked the linked analysis.  Nathan Smith – prior MHI Chair and partner in SSK Communities – name was raised in a reply, “Nathan…he’s a Democrat and a friend of Elisabeth Warren’s.”  

Elizabeth Warren was a champion of the Dodd/Frank reforms, and opposes on principle any changes to the law. 

Another source pointed a finger at Nathan Smith as being “routinely” involved in reviewing memos that go out to members, without specifically saying that the prior MHI Chair did so on this ‘alert.’

Another industry member stated, “I am glad you wrote this article.  Accountability is key to our industries success.”

Other comments used colorful language not deemed worthy of publishing in pro-Industry trade media.  

Some made a point of defending other MHI staffers, but routinely agreed that President and CEO Dick Jennison would have okayed the housing alert in question, and that it was beyond the pale for he and SVP Lesli Gooch to send that document to members.  

The controversial MHI Housing Alert is linked from the article along with a related video, are found here.

For the record, MHProNews has and still does support passage of Preserving Access  and/or having the CFPB change the regulations themselves, as the link here demonstrates.

An editorial related to this controversial issue is linked here. ##

(Editor’s Note: Typos found in quotes are in their original texted or emailed replies.)

Sunday Morning Recap-Manufactured Housing Industry News Dec. 6-Dec. 13, 2015

December 13th, 2015 Comments off

mhpronews_sunday_morningWhat’s New in public focused Manufactured HomeLivingNews.com

Why Families, Singles and Couples are Attracted to Good Manufactured Home Communities

Police Chief’s Wife is on Town Council and Loves Manufactured Home Living

What’s New in Manufactured Housing Industry Professional News

Homeless Housing in Dublin in Dispute. FEMA CA Wildfire Housing to Seniors. Iowa county allows only multi-section homes. More insider trading at Drew, Patrick and Skyline. Ronnie Richards appointed to Texas board. MH organizations sponsor food drive. New officers at Patrick. MHPros ask industry to contact Congress re: S682. Clayton buying Texas plant. Michigan MHC settles suit. Modular homes mimic Hobbit Holes. And much, more in news and views for you to peruse.

Saturday, Dec.12

Patrick Announces New President, CFO

Friday, Dec.11

Temporary Spending Measure Passes to Keep Government Open

Dow Spirals Downward as Oil Falls, Pulling many Stocks Down

Skyline CEO Florea buys Company Stock

Clayton Manufacturing Closes on New Plant

Trump Gaining Steam, Cruz, Rubio appealing to MHPros

Kovach asks Community to Contact Congress in Support of S 682

Thursday, Dec. 10

One-time Fee would Raise the Cost of a Manufactured Home

Modular Home Offers Life on the Water

MH-related Stocks Relatively Quiet in Today’s Trading

Michigan, Arbor Americana MHC Settle Lawsuit

Manufacturing Housing Pros rallying Troops for More Financing Options in 2016

Modular Homeless Housing in Dublin Hits another Snag

Wednesday, Dec 9

Modular Container Homes in Costa Rica will be Off the Grid

Most MH-related Stocks Slip, as do Dow, Nasdaq and S&P 500

First FEMA Manufactured Homes will be for Seniors Displaced by Valley Fires

Modular Homes Built to Mimic Hobbit Holes

MHC Management Sets Payment Plan for Miscalculated Charges

Tuesday, Dec. 8

Manufactured Home Organizations help Sponsor Annual Food Drive

Jeffrey L. Gendell Continues Unloading Patrick Stock

Sun Stock Rises Alone as Third Avenue Value Fund, UFPI Drop Sharply

Passages: Mary “Irene” Younkin

Sun Lights Up with Distributions

Passages: Darla Blanchard

Monday, Dec. 7

Rural Scott County Iowa only Allows Multi-Section Manufactured Homes

Manufactured Home finally Saved from Creek

More MH-related Stocks Slip than Rise

Texas Gov. Appoints Richards to MH Board

Drew Principals Sell over 40k Shares of Stock

Sunday Morning Recap-Manufactured Housing Industry News Nov. 29-Dec. 6, 2015 ##

(Photo credit: MHProNews)

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

PBS Segment on Manufactured Home Lending; MH Pros Need to Work Together

August 21st, 2015 Comments off

mortgage    andyenstallblog  creditMHProNews has learned PBS News will soon be doing video interviews focusing on manufactured home lending. Sources tell us the interviewer will do a balanced report with views from both sides of the issue.

Dr. Lesli Gooch from the Manufactured Housing Institute (MHI) writes how Dodd-Frank is harming the very people it was intended to help through the regulations imposed by the Consumer Financial Protection Bureau. The fix is not more money or another program or financial assistance. A simple adjustment to legislation would open the door to unsubsidized, affordable housing for millions. Click here for a synopsis.

While Fannie Mae and Freddie Mac have been financing loans to manufactured home communities (MHC), they may soon be providing a secondary market for individual manufactured home loans.

As L. A. “Tony” Kovach says, there is push and pull within and without the manufactured home industry, much agreement and sometimes disagreement. The main objective is to stay involved and stay informed and stay tuned to MHProNews. Click here for more information. ##

(Image credit: andyenstallblog)

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

Dr. Gooch of Manufactured Housing Institute calls for Dodd-Frank Adjustment

August 19th, 2015 Comments off

mhi  photo credit  mh under productionWriting in rollcall, Manufactured Housing Institute’s (MHI) Senior Vice President for Government Affairs Dr. Lesli Gooch says while different Congressional committees are evaluating the five-year-old Dodd-Frank Act, people in many rural communities are being harmed rather than protected.

She writes,The Dodd-Frank Act is preventing everyday Americans from accessing the financing they need to purchase quality manufactured homes they can afford in the communities where they live and work. This is occurring because many lenders had to stop making manufactured home loans when the Dodd-Frank Act classified the loans as ‘high-cost.’ Ironically, the loans receive this negative classification because they are small loans, reflecting the fact that manufactured homes are less expensive and more affordable.

While Dodd-Frank understands the need for different rates and cost thresholds for smaller loans, oddly enough, manufactured home (MH) loans are categorized as high-risk loans.

Additionally, manufactured home retailers are classified as loan originators for simply assisting home buyers find potential lenders—something realtors and homebuilders do routinely— which would require licensing and other fees, additionally raising the cost of what is supposed to be affordable housing. There are few MH lenders as it is, which forestalls potential MH homebuyers, steering them to more expensive housing options. In the midst of a national affordable housing crisis, it is unconscionable that federal rules are limiting access to credit for affordable, quality housing,says Dr. Gooch.

Noting that one in every seven homes in rural America is a manufactured home, and other forms of inexpensive housing are rare, Dr. Gooch documents stories of individuals who nominally qualify for a loan, but are denied MH loans because of misguided federal regulatory policies. Neither a new program, nor more funding, nor housing assistance is needed to solve the problem. H. R. 650, the Preserving Access to Manufactured Housing Act would restore availability of MH financing and protect against predatory lending. This bill passed the House, and the companion bill, S. 682, awaits passage in the Senate.

MHProNews understands adjustments to significant legislation are not terribly unusual. If H. R. 650/S.682 become law, the economy will receive a substantial shot-in-the-arm from manufactured home buyers and home builders.

Dr. Gooch concludes, “After five years of the Dodd-Frank Act, it is important to remain mindful that there are families being denied their American dream because of an unintended consequence. With a simple adjustment, financing for the largest form of unsubsidized, affordable housing in the country will be restored.##

(Photo credit: Manufactured Housing Institute–MH under construction.

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

Former Head of Manufactured Housing at HUD Urges Passage of S. 682

August 7th, 2015 Comments off

william_matchneer__bradley_arant_boult_cummings__housingwire__creditWilliam Matchneer, who once served as head of the Manufactured Housing Program at the Department of Housing and Urban Development (HUD), and from 2011 to 2014 with the Consumer Financial Protection Bureau (CFPB), recounts how implementation of the Dodd-Frank Act directives for High-Cost Mortgages under the Home Ownership and Equity Protections Act (HOEPA) negatively impacts the sale of MH under $20,000.

Now with Bradley Arant Boult Cummings LLP, Matchneer helped write the implementing regulations for the Dodd-Frank appraisal provisions, while other CFPB attorneys wrote the Dodd-Frank lending provisions to establish HOEPA thresholds.

Writing in jdsupra, he states, “Under current law, manufactured housing chattel loans are covered by HOEPA if the annual percentage rate (APR) exceeds the average prime offer rate (APOR) by more than 8.5% for loans of less than $50,000. However, given all the additional requirements for points and fees that come with the new HOEPA rules, chattel loans below $20,000 are simply not economical. As a result, most if not all lenders have simply stopped making these loans.

This hurts some of the most seriously disadvantaged, those with homes valued under $20,000, the very ones the CFPB says it is designed to protect, forcing them to accept cash offers in many case well below market value.

The Dodd-Frank statute does offer to the CFPB the authority to exempt certain loans from HOEPA coverage, but so far CFPB czar Richard Cordray has been unwilling to raise the thresholds.

H.R. 650, the bipartisan Preserving Access to Manufactured Housing Act did pass the House of Representatives in April, and it amends the thresholds in section 103 of the Truth in Lending Act (15 U.S.C. 1602) to APOR plus 10% for transactions under $75,000. This would protect the estimated 1.7 million manufactured homes with a loan balance below $20,000. It still manages to maintain consumer protections from predatory lending practices in Dodd-Frank. The companion bill in the Senate, S. 682, is currently in the hands of the Senate Banking Committee.

These bills would also exclude a retailer of manufactured homes or its employees from being classified as a loan originator and therefore subject to SAFE Act licensing and NMLS registration. Under current Dodd Frank/CFPB regulations, retailers cannot offer one iota of information to prospective consumers about MH financing.

For the MHLivingNews interview with Matchneer, please click here.##

Sunday Recap May 31, 2015-June 6, 2015

June 7th, 2015 Comments off

Sunday_morning_recapIn manufactured housing news, L. A. “Tony” Kovach defines path to revitalize the MH industry, while one MH supplier picks new head, another MH producer closes, HUD Code production continues rising, MHC reverting to stick-built homes, Cavco seeks tax abatement, AZ MHC closing, Sen. Donnelly and MHI’s Jennison defend H.R. 650, MHC refinances, MH industry to target Hispanics, and Sun declares dividends. Meanwhile, students are active building modular homes, homeless gain modular container homes, stick-builder shifts to modular, and container mods become hotels in Canada. Minnesota MHA sets conference, first-time home buyers increase, and interest rates drop.

Saturday, June 6, 2015

Magnolia Manufactured Homes Closing

Friday, June 5, 2015

Realtors ® and Manufactured Home Dealers should develop a Symbiotic Relationship

Skyline Regains Yesterday’s Loss while Drew Drops

Keith Anderson Appointed New CEO at Champion

Drop in Down Payment Signals Uptick in First-time Home Buyers

Sun Declares Dividends on Common and Preferred Stocks

MMHA Sets Spring Conference

Thursday, June 4, 2015

Turning Renters to Manufactured Home Buyers

Technology has Revolutionized Manufactured Homes

Dow Drops One Percent; Most Manufactured Housing Stocks Fall

Manufactured Home Tax Statements have been Mailed

Arizona Manufactured Home Community will be Repurposed under New Ownership

Rio Plaza Obtains Refi Package of $5.9M

Wednesday, June 3, 2015

The Path to the Rebirth of the Manufactured Housing Industry

HUD Code Production of Manufactured Homes Continues Climbing

Nobility Plummets -6.94%; MHCV Again Out paces Dow

Aussie Modular Home is Extremely Green

Burgeoning Hispanic Demographic presents Opportunities for Manufactured Housing

Changing Housing Market Leads Company to Modular Homes

Tuesday, June 2, 2015

Cavco Seeks Tax Abatement to Upgrade Fairmont Homes

Interest Rates, Median Home Price Falls

Cavco Seeks Tax Abatement to Upgrade Fairmont Homes

Shipping Containers will become Modular Housing for the Homeless in Hawaii

Senator Joe Donnelly Responds to Criticism of The Preserving Access to Manufactured Housing Act

Canadian Containers become Modular Motels

Monday, June 1, 2015

Numerous Students Built Cape Cod Modular Home

High School Building Modular Homes for Habitat for Humanity

MHCV Gains more Percent than Dow, Nasdaq, and S&P Combined

MHI CEO Richard Jennison Defends H. R. 650

Manufactured Home Sites Transitioning to Stick Built  ##

(Image credit: MHProNews)

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

Will Matt Drudge, Fox or CNN Spotlight Unfair Challenges Harming Millions of Manufactured Home Owners?

May 20th, 2015 2 comments

 

Mike-Baker-SeattleTimes-Daniel-Wagner-CenterForPublicIntegrity-hr650-s682-preserving-access-manufactured-housing-act-corrected-mhpronews-com-

Correction on this photo, an earlier version did not have the proper image of Mike Baker, left.

The Seattle Times/Center for Public Integrity has allegedly targeted Clayton Homes and Berkshire-Hathaway affiliated finance companies in an attempt to derail much needed reforms to Dodd-Frank which harm millions of manufactured home (MH) owners and thousands of MH businesses.

Mike Baker and Daniel Wagner – writers of the Seattle Times articles, done in conjunction with the Center for Public Integrity – used shock tactics prior to the House of Representatives vote to attempt to derail the now-passed HR 650, which enjoyed bi-partisan support.

More recently, that writing duo turn on Warren Buffett’s firms again, in advance of a Thursday May 21st vote in the Senate Banking Committee that will include industry sought relief (S 682) from the Consumer Financial Protection Bureau regulations. Industry professionals say that The Preserving Access to Manufactured Housing Act, would mitigate the harm done to the value of millions of low-cost manufactured home owners by the unintended consequences of Dodd-Frank.

It might take a link by billion-plus monthly page views Drudge Report, or media mavens like Fox or CNN, to right the imbalanced coverage spawned by Baker’s and Wagner’s questionable journalism.

Writing in the Seattle Times, Baker says that the default rate on manufactured homes is higher than conventional housing, and uses pejorative terms about the loans such as “predatory” and “risky.” But should 97 home buyers be barred home ownership via financing others won’t offer, so that the 3 who fail in a year be spared their loss?

As a comparison, should millions be stopped from working because a small minority might quit or lose their jobs? Should subscribers to the Seattle Times digital or print publications be barred from buying their brand of news, because some every year will stop paying them? Should their publication be barred from selling ads because some advertisers will stop using them every year?

Yet that is kind of reasoning being used by Baker and Wagner. Their self-evident goal is an attempt to stir up enough shock value that blurs their use of faulty or circle reasoning, aimed at undermining support for much needed Dodd-Frank reforms.

Real Harm to Millions of Real Home Owners and Thousands of Businesses

The Seattle Times and the Center for Public Integrity (CPI) fail to balance their report by pointing out that the loss of lending that has taken place is harming the value of the lowest cost manufactured homes.

Some 20% of the homes that 20 million manufactured home owners live in would sell for under $20,000, the mark that 21st Mortgage Corporation set below which they could not safely make a loan and still hope to profit. With 8.8 million manufactured homes and pre-HUD Code mobile homes in the U.S., that 20% would represent about 1,760,000 manufactured/mobile homes (MH).

Since most MH owners live in their homes an average of about 10 years, millions may not yet realize they are harmed.

Comrades in Arms Against Reform?

Organizations like the Center for Enterprise Development (CFED) are ducking tough questions from MHProNews. Meanwhile, CFED’s Doug Ryan willingly comments to the Seattle Times or OZY Media, why? Are his comments made to other media a desperate effort to shock enough people with headlines and stories that don’t stand up well to close scrutiny? Aren’t CFED and Ishbel Dickens led National Manufactured Home Owners Association (NMHOA) harming the very home owners they claim to be advocating for? Is their ideological stance more important to them than the realities on the ground caused by the polices they advocate?

Dickens sent MHProNews an emailed reply, saying she was on vacation, and thus could not answer questions. Her “vacation” ends after the Senate vote. She can email that she is on vacation, but can’t email a simple reply on the impact of current CFPB regulations on the values of millions of manufactured homes? Or how publishers such as OZY Media are arguably harming the value of MH owners, by using improper and derogatory terminology?

CFPB Regulations harms all current Manufactured Home Lenders

By spotlighting Berkshire-Hathaway affiliated companies, Baker and Wagner are allegedly attempting to derail needed reforms of Dodd-Frank, that impact manufactured home owners and every lender in the manufactured housing space.

don_glisson_2Triad Financial Corporation is a competing company to 21st Mortgage. Triad’s President and CEO, Don Glisson Jr., has told MHProNews that his firm’s costs have skyrocketed since CFPB regulations have gone into effect.

Glisson said, “Triad has been the leading lender in the “A” credit market for over 50 years and I have personally been with the company for over 30 years. Regulations have always been a fact of life for us, but our compliance costs have quadrupled in the past 3 years alone.”

Another industry lender, formerly with US Bank, told MHProNews off-the-record that their bank’s manufactured housing loan program was profitable. But the high costs of regulatory compliance, coupled with low loan volume, caused U.S. Bank to end their manufactured housing lending program. That mirrors the official statement made by the bank when they pulled out of manufactured home lending in November, 2014.

A third manufactured home lender said off-the-record that they are glad 21st Mortgage and Vanderbilt Mortgage and Finance (VMF) make the loans they do. Why? Because in the wake of the 2008 financial collapse, loans on manufactured homes originated by 21st and VMF were crucial to the survival of thousands of MH Industry companies, which included hundreds of independent operations not owned by Berkshire-Hathaway.

Doesn’t the dismal failure to report in a balanced fashion – as Jan Hollingsworth did in writing on the impact of Dodd-Frank on manufactured home buyers and professionals – undermine the credibility of a journalist?

Senior management with every major industry lender MHProNews spoke in favor of reforms on Dodd-Frank, even if they don’t make the same kinds of loans 21st and VMF do.

Triad’s CEO elaborated on the challenges faced by their firm and other manufactured housing professionals. “Since we specialize in A credits, we have never had an issue with higher cost loans and the rules that surround higher priced loans have zero impact on us.”

However,” Glisson stated, “the rule that prohibits a manufactured home retailer from advising the customer on finance options is one that we would like to see changed. Currently a buyer of a site built home can receive advice from their realtor or builder on financing options, while manufactured home buyers have no similar ability to seek a seller’s help. This would be like going to a car dealer to buy a new SUV and when you ask for help securing a loan they hand you the phone book and say they can’t help you so just pick one out yourself.”

Glisson explained what impact this CFPB regulation has made on their operation. “This has doubled the amount of applications we are now processing to do the same amount of lending. In the past, before the CFPB regulations, a retailer could pre-qualify a buyer by accessing their credit reports and analyzing their income, just like every Realtor ® in America can do. With that information, they could at least determine what lender NOT to send the application to. We have had to add several full time equivalent team members to handle the crush of applications, as we are now bombarded with applicants who have no chance of qualifying with us.”

This is a pattern of “shot-gunning” applications by retailers to all MH lenders, to avoid the appearance of steering, that other lenders have confirmed for MHProNews.

Glisson went on to say that, “Beginning in 2014, when the rules went into effect, our origination cost per loan has skyrocketed. Pre-2014 we would approve about 50% of the applications we received as they were pre-screened. Currently we approve about 30% of the applications we receive, so our efficiency went down the tubes and we are working harder and spending more to make the same amount of loans.”

These are the kinds of real world problems caused by federal regulations that cause a lender such as U.S. Bank to pull out.

inside_mh__am_landy

As Sam Landy, President and CEO of UMH Properties pointed out in a video interview linked here, it has caused them and others in the community business to stop lending to potential manufactured home owners. They now rent homes to those who before would be qualified by their finance arm to make renters into home owners. How does that regulatory caused impact help those thousands seeking ownership and equity instead of rent receipts to advance in life?

Doing the Math

Finance experts tell us that a community operator like UMH, using a related or ‘captive finance’ company, can afford to make loans at a lower interest rate than a traditional lender because they are only loaning on manufactured homes in their community. In the event of a default, their costs and thus their loses are lower. Additionally, a manufactured home community operator can benefit even if their loan program is only marginally profitable, because they are getting additional revenue from a sold home and filled homesite.

There is no similar benefit to the third party loans made by 21st, VMF, Triad Financial, CU Factory Built Lending or Mountainside Financial. The same holds true for regional or local lenders who must profit on the loan itself, or they won’t make the loan in the first place.

Does Buffett win more than Millions of home owners would from the proposed reforms to Dodd-Frank?

While the Seattle Times’ Baker and his tag team writer Wagner make it sound that Warren Buffett and Berkshire-Hathaway related companies are the big winner from financial reform, they clearly overlook the real world impact on an estimated 20% of those home owners who live in a home that is worth under $20,000.

If those homes averaged $15,000 each, 1.76 million MHs represent an aggregated value of $26,400,000,000. That sum dwarfs the benefits to Berkshire-Hathaway, or indeed, to the entire manufactured housing industry.

Since financing is the key to most big ticket sales, a loss of financing causes the same drop in value that was seen in conventional housing in the wake of the 2008 mortgage collapse.  Just as conventional housing lost value absent lending, the same holds true for manufactured homes.

As the now-retired president of the Manufactured Housing Association for Regulatory Reform (MHARR), Danny Ghorbani, has said, the factory built home industry was not the cause of the 2008 housing/mortgage bubble. So why were manufactured home owners, housing businesses and professionals penalized? Why is manufactured housing owners and buisnesses taking such a direct hit from the impact of CFPB regulations?

eric_powell_and_family

 As Eric Powell told Jan Hollingsworth about the impact of Dodd-Frank and the CFPB regulations on their manufactured home purchase, What were they thinking when they did that?”  Or as Sam Landy told MHLivingNews, the consequences to millions of manufactured home owners and thousands of business may well have been untended, but someone has got to fix this. ##

(Image credits 3 and 4, MHLivingNews; Don Glisson Jr photo and composite photo and graphic of Baker and Wagner made by MHProNews).

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

Twisting Terminology about Manufactured Home Financing

April 1st, 2015 Comments off

mfg home horizon land co creditWhile investopedia sets the record straight in noting “mobile homes” were built before HUD Code standards were established n 1976, it nevertheless uses the term in the article’s title: “Are Mortgages Available for Mobile Homes? It does use the correct phrase in the article.

It says 32 percent of manufactured home households are headed by a retiree, and their median income is half that of other families, without noting that household expenses are also often less in a manufactured home than in a site-built home.

In addition, manufactured homes aren’t always eligible for a traditional mortgage on any terms because the prospective homeowner doesn’t own the land on which they are located.” Not always true.

While it notes residents of manufactured homes are often “older individuals or low income families who tend to be offered less than favorable rates and terms on any type of loan,” it also says chattel loans are for shorter periods of time which reduces the actual amount paid in interest. In addition, closing costs are lower and the time it takes to complete the process is also less.

If you live in a manufactured home that is permanently affixed to the land on which it’s located – and if you own that land or are considering buying it – you probably qualify for a traditional mortgage.” Many manufactured homes are affixed to the land because that is the most secure option, particularly in the face of high winds.

As MHProNews  understands, the Investopedia  article makes no reference to pending legislation in Congress — the Preserving Access to Manufactured Housing Act — that could alleviate some financial challenges of buying a manufactured home.  

Equally important are points made by the Government Accounting Office (GAO) in their report last summer, see the link to that report which shows that MH costs less to own and finance, linked here. ##

2014gao-report-comparing-manufactured-housing-vs-apartments-posted-mhpronews-com-

The GAO chart above demonstrates the MH is the lowest cost form of housing, even considering personal property loan rates, based upon actual monthly payments.

Related finance article, linked here.

(Photo credit: Horizon Land Co.–manufactured home)

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

Affordable Housing not Keeping up with Demand

March 31st, 2015 Comments off

home planning     theatlanticcities  creditMHProNews has learned from nationalmortgagenews a recent report by Zillow states that population growth has outpaced the growth of housing in many areas across the country, especially affordable housing. The cities that are in step have either experienced low population growth or have maintained a steady growth of new housing.

Zillow’s national rent index rose 3.4 percent to $1,355 from Feb. 2014 to this Feb., while the Zillow Home Value Index increased 4.9 percent year-over-year to $178,700.

As an example, in San Francisco residents pay 44 percent of their income on rentals, and 39.2 percent for a monthly mortgage payment. The numbers across the country are somewhat better, especially for homebuyers: Renters spend 30.1 percent of monthly income on housing, while homeowners pay 15.3 percent.

As the economy improves, more Americans are expected to move from shared homes into their own, first as renters and then as homeowners. However, the shortage of affordable housing could feed into more demand for manufactured homes (MH), especially if the Preserving Access to Manufactured Housing Act measures becomes law, easing the path to financing MH. ##

(Image credit: theatlanticcities–home planning)

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