Archive

Posts Tagged ‘producers’

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.)

 

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.

(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.

Bridging Gap$, Affordable Housing Solution Yields Higher Pay, More Wealth, But Corrupt, Rigged Billionaire’s Moat is Barrier

Duty To Serve, “Complete Waste of Time” per Tim Williams, CEO/21st Mortgage; POTUS Trump, Warren Buffett Insight$

 

Former Manufactured Housing Institute President, Manufactured Home Owners, Urban Institute, and You

New NAMHCO Association Challenges Manufactured Housing Institute on DTS, Financing, and More

Manufactured Home Production Decline Accelerates in November 2018

 

Warren Buffett’s Berkshire Hathaway, Clayton Homes, 21st Mortgage Corp and their “Strategic Moat,” Plus Manufactured Housing Equities Updates

2019 Trade Shows, Next Battleground of the Manufactured Housing Revolution?

Manufactured Housing Institute’s Three Stooges? SECO ‘Leaders’ George F. Allen, Spencer Roane, Tom Lackey and ‘Rent to Own’ Scams?

 

 

 

 

 

 

 

 

 

Fed’s Powell “Remarkably Positive Outlook,” Plus Manufactured Housing Market Updates

October 2nd, 2018 Comments off

CNNmoney10.1.2018ManufacturedHomeStocksMarketsReportsMHProNewsThere is a steady stream of positive economic, consumer confidence, business and investor confidence news. The positive economic news stands in stark contrast to the roughly last 9 years before the 2016 election, when huge borrowing and a series of “QEs” – “Quantitative Easing” – artificially propped up an economy that was being strapped down by heavy regulations and taxes too.  Today, Federal Reserve Chairman Jerome Powell talked at an economic forum about the economic outlook, which will be our focus report for this evening.

 

If you’re new, already hooked on our new spotlight feature – or are ready to get the MH professional fever – our headline report is found further belowafter the newsmaker bullets and major indexes closing tickers.

The evolving Daily Business News market report sets the manufactured home industry’s stocks in the broader context of the overall markets.  Headlines – at home and abroad – often move the markets.  So, this is an example of “News through the lens of manufactured homes, and factory-built housing.” ©

Part of this unique evening feature provides headlines – from both sides of the left-right media divide – which saves busy readers time, while underscoring topics that may be moving investors, which in turn move the markets.

Readers say this is also a useful quick-review tool that saves researchers time in getting a handle of the manufactured housing industry, through the lens of publicly-traded stocks connected with the manufactured home industry.

This is an exclusive evening or nightly example of MH “Industry News, Tips and Views, Pros Can Use.” © It is fascinating to see just how similar, and different, these two lists of headlines can be.

Want to know more about the left-right media divide from third party research?  ICYMI – for those not familiar with the “Full Measure,” ‘left-center-right’ media chart, please click here.

MediaBiasChartSharylAttkissonLeftRightPostedDailyBusinessNewsMHProNews

Full Measure’s Sharyl Attiksson’s media bias chart is useful in sorting out the agendas behind various headlines and news sources. http://www.mhpronews.com/blogs/daily-business-news/no-fire-just-smoke-and-democratic-clinton-supporter-says-enough/

 

Select bullets from CNN Money…

  • Tencent Music plans to go public on US exchange
  • The markets are soaring. How should investors play it?
  • A llama, bagel and frisbee: Apple’s new iOS 12.1 emoji
  • Tesla calms fears with strong sales numbers
  • Uber hires Expedia exec to fill HR role
  • Volkswagen dumps jailed Audi CEO amid emissions probe
  • Can GE’s new boss right the ship?
  • GE unexpectedly removes its CEO
  • Goldman Sachs’ new CEO has a lot of work to do
  • Goldman Sachs slants research to help Democrats, top White House adviser says
  • New York Times says it was a mistake to enlist writer who posted anti-Kavanaugh tweet to report on him
  • Microsoft co-founder Paul Allen is being treated for cancer
  • Stocks pop after new US-Canada-Mexico deal
  • Jemele Hill is joining The Atlantic
  • Don’t fall numb to this Facebook hack
  • There was only one White House press briefing in the entire month of September
  • California has a new law: No more all-male boards
  • Katie Couric: News need more diversity at the top
  • Washington Times settles lawsuit with Seth Rich’s brother, issuing a retraction and apology
  • California just passed its net neutrality law. The DOJ is already suing
  • Elon Musk agrees to pay $20 million and quit as Tesla chairman
  • Facebook hack exposed 50 million users’ info
  • New York DA probing allegations of sexual misconduct at CBS
  • Murdoch family made big money off the Disney-Fox deal
  • SEC charges LendingClub unit with mishandling investors’ money
  • 10 years after the crisis, some investors are still scared of stocks
  • Amazon’s newest physical store has a twist
  • JCPenney now has no CEO or CFO
  • These 3 startups are here to save local news in their communities
  • Ted Turner reveals he has dementia
  • How to catch up on retirement savings in your 50s

Select Bullets from Fox Business

  • Dow continues to rally, climbs to new record
  • Online sales taxes take effect in these states
  • High-tax New York towns to battle IRS over SALT cap workaround
  • What went wrong at General Electric
  • Why these stores will be closed on Thanksgiving
  • Amobee CEO Kim Perell, a self-made millionaire, reveals the secret to success
  • The Air Force is getting a new uniform
  • As a newly-minted US citizen, I did not sign on to the rule of a Democrat mob: Varney
  • C. Penney taps Jill Soltau as new CEO to lead turnaround
  • CEO departures are on the rise. Here’s a list of the big ones
  • New trade deal unites US allies against China: Kevin Hassett
  • The key parts of Trump’s new trade deal with Canada, Mexico
  • Wilbur Ross: New NAFTA deal a ‘win’ for US dairy
  • Auto sales dinged as interest rates spike
  • Musk tells Tesla employees to prove ‘naysayers’ wrong
  • Delta partners with CarePod to improve pet travel
  • Fed reportedly reconsiders standards of a big bank
  • Facebook could face massive fine in Europe after data breach
  • Amazon raises minimum wage to $15 for US employees
  • NASCAR Cup Series race team is a family affair
  • TriStar Motorsports keeps a family tradition alive at the racetrack.

 

Today’s markets and stocks, at the closing bell…

9MarketIndicatorsYahooFinance10.2.2018DailyBusinessNeawsManufacturedHousingIndustryStocksMarketsReportsDataMHProNews

 

Manufactured Housing Composite Value (MHCV)

YahooFinanceManufacturedHousingCompValue10.2.2018DailyBusinessNewsStocksMarketsDataReportsMHProNews

Today’s Big Movers

For all the scores and highlights on tracked manufactured home connected stocks today, see thBloomberg graphic, posted below.

Today’s MH Market Spotlight Report –

Among the points that left-of-center CNBC rarely mentions when it comes to the FED and the economy today vs. the Obama era is this.  QE was a fancy phrase for ‘printing money’ by the FED. It was an artificial way of propping up the economy.  Besides all the positive economic news, often overlooked is the fact that the Federal Reserve has been “unwinding” those holdings that kept the markets artificially higher.

Wolf Street, not CNBC, reported in August that “The plan calls for shedding up to $420 billion in securities in 2018 … Since the beginning of the QE-Unwind, the Fed has shed $129 billion in Treasuries. … In total, $61 billion in MBS have been shed since the beginning of the QE unwind.” 

That’s arguably another example of how a media outlet’s hidden agenda can subtly-to-boldly ‘spin’ the news.  It’s one of several reasons why MHProNews cites headline bullets each evening from CNN Money and Fox Business, which at least provides some balance to the otherwise hyper-partisan way that news is often reported.

That said, let’s look at what CNBC said this evening about Chairman Powell’s comments.

 

  • Federal Reserve Chairman Jerome Powell cited a “remarkably positive outlook” for a U.S. economy enjoying both low unemployment and inflation.
  • A reporter asked Powell after last week’s Fed meeting whether the outlook was too good to be true,” and he said it was “a reasonable question.”
  • In a speech Tuesday, the central bank chief said the jobless rate is running at 3.9 percent and inflation is around the Fed’s goal of 2 percent. Historically, low unemployment has fueled inflation and sometimes has forced the Fed into hiking interest rates rapidly.
  • While these two top-line statistics do not always present an accurate picture of overall economic conditions, a wide range of data on jobs and prices supports a positive view,” Powell told economists at a Boston conference. “In addition, many forecasters are predicting that these favorable conditions are likely to continue.”

Related Reports:

Near All-Time Record, Confidence Means MORE Sales and Business

USMCA: President Trump Announces NAFTA Replacement Promise Made, Kept – Stocks Soar, plus MH Market Updates

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

 

Bloomberg Closing Ticker for MHProNews…

NOTE: The chart below includes the Canadian stock, ECN, which purchased Triad Financial Services.

NOTE: The chart below covers a number of stocks NOT reflected in the Yahoo MHCV, shown above.

NOTE: Drew changed its name and trading symbol at the end of 2016 to Lippert (LCII).

10.2.2018DailyBusinessNewsManufacturedHousingConnectedMarketReportsBloombergMHProNews

Berkshire Hathaway is the parent company to Clayton Homes21st Mortgage, Vanderbilt Mortgage and other factory built housing industry suppliers.

LCI Industries, Patrick, UFPI and LP all supply manufactured housing.

AMG, CG and TAVFX have investments in manufactured housing related businesses.

Your link to industry praise for our coverage, is found here.

For the examples of our kudos linked above…plus well over 1,000 positive, public comments, we say – “Thank You for your vote of confidence.”

SoheylaKovachDailyBusinessNewsMHProNewsMHLivingNewsWe Provide, You Decide.” © ## (News, analysis and commentary.)

(Image credits and information are as shown above, and when provided by third parties, are shared under fair use guidelines.)

Submitted by Soheyla Kovach to the Daily Business News for MHProNews.com.

“Go Big or Go Home” Hoya Capital, Alpha Report-Wakeup-Manufactured Home Sellers, Communities, Producers

January 10th, 2018 Comments off

ManufacturedHousingAlexPetteeCFAPresidentHoyaCapitalRealEstateSeekingAlpha516

Manufactured housing remains, by far, the most affordable non-subsidized housing option.”
– Hoya Capital.

As is often the case, government regulation results in consequences that are exactly opposite of the original intent: a higher concentration of power in the hands of fewer. The implications of this are that while the overall housing recovery will continue to be sluggish, the larger homebuilders should continue to outperform the broader sector.”
– Hoya Capital.

Size and scale have become essential for homebuilders. Stifling regulations, rising construction costs, and sluggish demand have squeezed margins and made it nearly impossible for smaller builders to compete.”

– Hoya Capital.

Access to capital markets (or lack thereof) was the primary reason that the larger builders were able to avoid bankruptcy during the housing collapse.”

– Hoya Capital.

To the victor go the spoils. We remain negative on the homebuilding sector relative to consensus. Restrictive zoning (NIMBY), rising construction labor costs, and buyer affordability issues will continue to hold back the recovery.”

– Hoya Capital.

REITRankingManufacturedHousingHoyaCapitalRealEstateSeekingAlphaManufacturedHomeDailyBusinessNewsMHProNews

Notice: while MHProNews is extensively quoting from some Hoya Capital, and Seeking Alpha reports, that should not be construed as an endorsement. The reports are interesting, and worthy of analysis and commentary, as it applies to manufactured housing.

Analysis of the Quoted Top Lines

While much of the above and what follows applies to manufactured housing, some of the issues that focus on conventional housing could be avoided by manufactured home builders, and retailers.

How? Why? Because a proper understanding and application of enhanced preemption could open up markets and locations that are currently being artificially closed to manufactured housing.

Harper – Thank You Rev Donald Tye, Fighting for Enhanced Preemption of Manufactured Homes

Under Hoya Capital’s Manufactured Housing Research link, one click reveals an article that begins with a report dated Oct 24, 2017 and opens with the following bullets.

2018-01-10_1026HoyaSeekingAlphaDailyBusinessNewsManufacturedHousingIndustryMHProNews595

Hoya Capital Seeking Alpha Manufactured Housing Research Summary
Notes:
Hoya provided graphics are so labeled, others and
related linked reports are from sources as shown.

Manufactured Housing continues to outperform the broader REIT averages in 2017. The sector is up 20% YTD and more than 100% over the past three years.

3Q17 earnings were better than expected. Both Equity Lifestyle and Sun Communities beat earnings estimates and raised full-year guidance. Same-unit NOI rose 7.5% from 3Q16 and 2018 looks promising too.

After fearing the worst, Hurricane Irma and Harvey had only minimal effects on these REITs. Between the two REITs, only five seasonal RV resorts in the Keys sustained significant damage.

No economic segment stands to benefit more from the Trump agenda than the “forgotten” white rural working class. Economic confidence has improved dramatically since election day for this economic segment.

Manufactured housing remains, by far, the most affordable non-subsidized housing option. We caution, however, that residents may choose to upgrade to better housing options if their economic conditions improve considerably.”

While the last paragraph’s second sentence makes a statement that may not be born out by data – such as that produced by Foremost Insurance, in the report linked below – the thrust of the above is spot on.

Foremost Report: Manufactured Home Customer Survey and Market Facts

Per their website, “Alex Pettee, founded Hoya Capital Real Estate in 2015 and has quickly established the firm as a leading voice in the publicly traded real estate sector.”

Their website also states (typos in their original, as of this date), “Hoya Capital Real Estate, LLC is a Connecticut Registered Investment Advisor. We individually advise and manage our client’s commerical real estate allocation through investments in publicaly traded equities.”

2018-01-10_1512HousingContractionSurplusDeficitOversupplyGlutVs2008CrashDailyBusinessNewsManufacturedHousingIndustryMHProNews

Against that backdrop, it’s clear that Hoya Capital is warm and open to manufactured housing (MH), and encourages investments in the manufactured housing REIT sector.

Against that backdrop, is a new report published in Seeking Alpha. Hoya makes their case why “Homebuilders: Go Big or Go Home.”  While the report focuses on conventional housing, several of the points apply to manufactured home construction and scale too.

Homebuilders: Go Big or Go Home.”  – Summary

A decade after the housing collapse, Wall Street is once again feverishly bullish on homebuilders. Homebuilders surged more than 60% in 2017 despite a disappointing 7% rise in new homes.

Size and scale have become essential for homebuilders. Stifling regulations, rising construction costs, and sluggish demand have squeezed margins and made it nearly impossible for smaller builders to compete.

The rapid recovery in home prices since 2012 has made the economics of homeownership unfavorable relative to renting. Tax reform has tilted the scale even further towards renting

Unaffordability and attitudes towards homeownership remain constraints on demand.

To the victor go the spoils. While the overall housing recovery remains lethargic, we expect continued bifurcation as the competitive positioning of the largest homebuilders has strengthened amid continued consolidation.”

HomePricesVsMedianIncomeVsRentYoYManufacturedHousingIndsutryDailyBusinessNewsMHProNews

These statistics are problematic for others in housing, but underscore the potential for manufactured housing, as has been reported by MHLivingNews and MHProNews for several years.

Note, the Daily Business News edited out a statement that reflects an area where contradictory data exists from other sources, as is found in the report below.

NAR’s Yun – No Quick Fixes Spell$ Manufactured Housing Opportunitie$

But the balance of the bulleted statements would draw widespread agreement from a variety of other sources.

2018 Outlook-Crisis Spell$ Opportunity, Per Leonard Kiefer, Freddie Mac Data

Further, what are cautions within the Hoya/SA report exit, they may not apply in the same way to the strategic visionaries among manufactured home retailers, communities, producers, and others in MH –  who think long term, based upon trends, history, and actionable data.

Notable, Quotable from Hoya’s Report Included:

Homebuilding segments can be roughly split into four categories: entry-level, move-up, luxury, and retirement. As construction and regulatory costs have risen, homebuilders have shifted their focus towards higher-end units which command high-enough margins to offset these increased costs. The average new home price was $377k in November 2017.”

2018-01-10_1558AverageSellingPriceHoyaSeekingAlphaManufacturedHousingIndsutryDailyBusinessNewsMHProNews

The constraints for others, are ‘welcome home’ signs for manufactured housing professional who are pro-active, and are willing to navigate the industry’s internal politics and use the laws already on the book to their favor.  See the example, linked below.

“Mobile Home Ban” Suit Win, “Equal Justice Under Law,” Manufactured Home Owners, Buyers, Industry

As we’ll discuss shortly, size and scale are a critical factor for homebuilders. Access to capital markets (or lack thereof) was the primary reason that the larger builders were able to avoid bankruptcy during the housing collapse.”

Even within our index, which only includes the largest builders, the critical importance of scale becomes clear through the wide gap in operating margins, which declines linearly with decreasing size. The smallest builder in our index, MDC Holdings, operates at a measly 4.5% operating margins compared to the 13% average for the largest four builders.”

Following that trendline, it becomes clear that the smallest individual private builders struggle to turn a profit on new home construction.”

Operating margins show similar trends of compression as construction costs, and regulatory costs have shown steady appreciation since the end of the recession.”

From the NAHB: By sharply reducing the number of taxpayers who would itemize, what’s left is a tax bill that essentially eviscerates the mortgage interest deduction and strips the tax code of its most vital homeownership tax benefit. This tax blueprint will harm home values, act as a tax on existing home owners and force many younger, aspiring home buyers out of the market.””

Note to manufactured home investors, enthusiasts and readers.

Killing Off 100s of Independent Manufactured Home Retailers, Production Companies – Tim Williams/21st Mortgage “Smoking Gun” Document 2

Hoya’s interesting data and reports should be a wakeup call to our industry, for both the opportunities it indirectly underscores, but also for the contributing factors to contraction and consolidation in the manufactured housing industry.

“Perverse”–Warren Buffett-Dodd-Frank, CFPB, Manufactured Housing, Loans, Independent Businesses Fact Check$

This and some other points made in the Hoya/SA report might be seen as bad news for conventional housing, but could with the proper education of home buyers, prove to be positives for manufactured home buyers.

Case in point, is the Florida Atlantic University report and exclusive comments to MHLivingNews about their study’s application to manufactured homes, linked below.

Researchers Shake Up American Dream? Rent vs. Buy, Ken Johnson, Florida Atlantic University, Exclusive to ManufacturedHomeLivingNews

Back to Hoya’s quotes:

Zillow estimates that 44% of US homes currently utilize the mortgage interest deduction. Because of the doubling of the standard deduction, less than 10% of homes will now find it advantageous to itemize their deductions, eliminating a key incentive for homeownership.”

D.R. Horton, and Lennar acquisitions, “Clearly indicating that scale is essential in the homebuilding space, these two moves may just be the beginning of a wave of consolidation.”

Again, the combination of strong labor markets and solid wage growth have historically been a good recipe for single-family housing demand.”

“…the subsequent financial crisis of 2008. The financial shock and devastation were particularly acute in the homebuilding sector. As we’ll discuss shortly, hundreds of small private builders went bankrupt during the crisis as credit markets froze up.”

Duty To Serve, “Complete Waste of Time” per Tim Williams, CEO/21st Mortgage; POTUS Trump, Warren Buffett Insight$

“…housing demand is now exceeding housing supply on a rolling 5-year basis.” (That, Daily Business News readers should note, is similar to our reports from NAR and NLIHC reports, linked further above and below).”

NLIHC CEO Responds on HUD’s Worst Case Housing Needs Report, MH Leader Reacts

Residential spending remains 45% below the 2006 peak after adjusting for construction inflation. Considering that the average age of the US housing stock is above 40 years, the higher rate of obsolescence will also act as a limit on supply growth. Overall, even if new single-family home construction surprises to the upside for several consecutive years, oversupply at the national level is unlikely to become an issue over the next decade.”

“…we believe that the bifurcation within the sector will continue as the largest homebuilders expand their competitive advantage over smaller players. Access to capital markets was a key factor in the survival of large builders in the aftermath of the housing crisis. As shown below, the largest builders quickly recovered while smaller builders such as Beazer Homes trade for a fraction of their peak value. Of course, for hundreds of smaller builders, the equity value was wiped out during the downturn.”

2018-01-10_1541MarginsOfBuildersLargerforBiggerBuildersVsSmallerBuildersSeekingAlphaHOYACapitalManufacturedHousingIndustryDailiyBusinessNewsMHProNews

Professor Michael Porter used the homebuilding sector as an illustration of the “Five Competitive Forces” at play in a 2003 presentation. With amazing precision, Porter correctly forecast that the competitive advantage of the largest homebuilders would expand over the coming decades, primarily a result of a regulatory environment that made it nearly impossible for small builders to compete. Land-use zoning and “Not-In-My-Backyard-ism” limits available land and serves to raise the barriers to entry by increasing the cost of construction and limiting margins.

Out of Sequence, from Hoya/SA Report:

A Pew Research study estimated that 12% of the construction workforce is undocumented. A significant reduction or crackdown on undocumented labor can be expected to put upward pressure on construction costs.”

whereIllegalImmigratntsOverrepresentedConstructionManufacturedHousingIndustryDailyBusinessNewsMHproNews595

A NAHB study found that government regulations account for nearly 25% of the final price of a new single-family home, an increase of 30% since 2011. Roughly two-thirds of these costs come during the permitting process and one-third comes from fees, taxes, and ‘unnecessary’ code-related guidelines that do little more than serving to drive up the costs of construction.”

Conclusions From Hoya/SA…

  • As is often the case, government regulation results in consequences that are exactly opposite of the original intent: a higher concentration of power in the hands of fewer. The implications of this are that while the overall.”
  • And….” housing recovery will continue to be sluggish, the larger homebuilders should continue to outperform the broader sector.”
  • And “The financial shock and devastation were particularly acute in the homebuilding sector. As we’ll discuss shortly, hundreds of small private builders went bankrupt during the crisis as credit markets froze up.”

As regular MHProNews readers know, these points by third-party researchers at Hoya, dovetail with many of the reports made about manufactured housing, as it relates to giants and their favored national association.

GSE’s Duty to Serve MH Rigged, Benefits 21st, VMF, Clayton, Buffett’s Berkshire, Harming Consumers & Independents, per MH CEO, Calls for Congressional Investigation

Specifically, how the Manufactured Housing Institute (MHI) – acting in favor of larger firms such as Berkshire Hathaway owned Clayton Homes, Vanderbilt Mortgage and 21st Mortgage –  have per sources consistently worked in ways that allowed regulatory burdens to remain or grow, rather than reduce them.

Warren Buffett, “the Moat,” Manufactured Housing, Berkshire Hathaway, Clayton Homes, 21st Mortgage, Vanderbilt, Wells Fargo, NAI…

These voiced concerns have come politely from some, and pointedly from others, within the industry.

Shake Up at HUD Manufactured Housing Program May Stop Industry Overregulation, per MH State Association

They say one thing, and do another.

FollowTheMoneyPayMoreAttentionToWhatPeopleDoThanWhatTheySayMartyLavin6MillionYachtManufacturedHousingIndustryDailyBusinessNews600

Lavin is an MHI award winner, and a success story in communities, retail and finance.

Or as MHI award winner, Marty Lavin, JD has said, pay more attention to what people do than what they say, and follow the money.

Lawsuits for Triple Damages – Anti-Trust, Anti-Monopoly Law, Manufactured Housing, and You

MHPros, if you believe the implications from the Hoya/SA report, or from others inside and outside of the factory-built home industry, there is a need to “go big, go home.

Or fight back via those methods that are available.  ## (News, analysis, and commentary.)

Note 1: Thousands of MH Pros, Investors, Officials and Housing Experts do it. You, your team, and industry colleagues can sign up to the MH Industry leading headline news/updates – typically sent twice weekly – click here to sign up in just seconds.

SoheylaKovachManufacturedHomeLivingNewsManufacturedHousingIndustryDailyBusinessNewsMHProNews-Submitted by Soheyla Kovach to the Daily Business News for MHProNews.com.

Retailers, Communities, Producers – Floor Planning Homes? NADA Says, Call Your Senators to Support Inclusion of Floorplan Lending in Tax Reform Deductibility

November 30th, 2017 Comments off

SupportSenatorRandPaulAmendmentTaxReformBillFloorplanDeductabilitySenators need to hear directly from YOU about the importance of floor plan financing to your business. Call your Republican Senators and ask them to cosponsor Senator Rand Paul’s amendment to ensure floor plan interest remains fully deductible,” said the National Automobile Dealers Association (NADA).

In a media release, David Regan, NADA, Executive Vice President of Legislative Affairs, said the following.

Senators began voting on the “Tax Cuts and Jobs Act,” which includes a provision that would reduce the current 100 percent deduction of business interest, including floor plan interest, to 30 percent of adjusted taxable income. Sen. Rand Paul (R-Ky.) introduce an amendment to restore the full deductibility of floor plan interest as included in the House bill.  NADA strongly supports the Paul amendment.”

The Senate tax reform bill is on the Senate floor now. Please call your Senators ASAP and ask them to support Sen. [Rand] Paul’s amendment. Senators need to hear directly from dealers, even if calls have previously been placed, to urge support for the Paul amendment. Amendments will be voted on later today with final passage of the bill likely on Friday,” NADA’s Regan said.

https://www.senate.gov/reference/common/faq/How_to_correspond_senators.htm

Or Call:

You may phone the U.S. Capitol Switchboard at (202) 224-3121. A switchboard operator will connect you directly with the Senate office you request.

ConfidentialNewsTipsOKTipsIreportMHNews@MHMSM-comGraphic

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.

Where is MHI on this?

Per sources, the Manufactured Housing Institute (MHI) has not yet taken a position on this, see this link.  A source with the Manufactured Housing Association for Regulatory Reform (MHARR) said this is a post-production issue, one they don’t normally take a position on.

The issue was raised to MHProNews by a retailer, as a news tip.  Our thanks to that reader, and all who share news tips, documents, and thoughtful commentary. ## © (News, analysis, commentary.)

Note 1: For those who want to sign up to our industry leading headline news updates – typically sent twice weekly – please click here to sign up in just seconds.

(Image credits are as shown above, and when provided by third parties, are shared under fair use guidelines.)

SoheylaKovachManufacturedHomeLivingNewsManufacturedHousingIndustryDailyBusinessNewsMHProNews-Submitted by Soheyla Kovach to the Daily Business News for MHProNews.com.

TV Show no help to Manufactured Housing Image

July 29th, 2013 Comments off

The reality TV show “Duck Dynasty” about the backwoods family who started a lucrative duck call business and has now hooked up with Clayton Homes perpetuates the stereotype of people who live in manufactured homes (MH) as “rednecks,” an image the industry is trying to dispel. Kirk Walker of The Home Place, an MH dealer in Pinson, Ala., says, “I have family members that think I’m in the trailer business. And of course they’ve been in and looked and can’t imagine that this is what a manufactured home has come to.” He says while sales have been slow, the new homes are much more energy efficient than the old homes, and a new MH costs about half as much as a traditional home. While business in 2012 increased 20-25 percent over 2010, Sherry Norris, Executive Director of the Alabama Manufactured Housing Association (AMHA), says federal restrictions on loans for MH are still too tight. “We haven’t been able to sell the homes we would like because of the strenuous regulations that have been put on financing,” she says. According to marketplace.org, many people are still lured away by foreclosed homes that may be less expensive, but many of them need a lot of work. MHProNews knows Alabama has many manufactured housing producers throughout the state.

(Photo credit: Deer Valley Homes)

Cavco to Release Financials

July 26th, 2013 Comments off

Cavco Industries, Inc., will release financials for Q1 of fiscal year 2014 after the close of the market Thurs., Aug 1. 2013. The following day senior management will discuss the results in a live webcast Fri., Aug 2 at 12 noon Eastern time. Interested parties will be able to listen to the webcast at http://www.cavco.com under the investor relations link. The call will be archived for 90 days under the same link for 90 days following the webcast, according to globenewswire. MHProNews knows Cavco is one of the largest producers of manufactured homes in the country sold under the Cavco, Fleetwood Homes and Palm Harbor Homes brand names. The company also manufactures park model homes, vacation cabins and modular homes, and provides mortgages and insurance to owners of factory-built homes.

(Photo credit: Stacey Hairston/franklinnews-post–Cavco plant, Rocky Mt. Vir.))

Federal Emergency Management Agency Seeking Emergency Housing

March 19th, 2013 Comments off

The Manufactured Housing Association for Regulatory Reform (MHARR) informs MHProNews the Federal Emergency Management Agency (FEMA)’s “Industry Days” to chart a course for the construction and logistics of emergency Temporary Housing Units (THUs) were largely question and answer sessions. At the March 15 day-long event, however, FEMA did note it wants the units built for use anywhere in the country, will entertain alternatives to taped dry wall because of the potential for separating during transport, and will make only HUD Code dwellings—no park models or trailers or other structures. FEMA also seeks information from producers on a possible production schedule following a catastrophe. While FEMA says it will issue solicitations for bids in the near future, it first will offer a “draft solicitation” to seek additional comment and input from interested parties.

(Photo credit: SmartPlanet–portable shelter)

Tight Credit Choking Recovery?

March 1st, 2013 Comments off

According to the National Association of Home Builders (NAHB), even as the housing market begins to improve, the bottleneck of tight credit for builders as well as for consumers remains an obstacle to a much more robust recovery. Some materials producers closed plants and idled workers, and they are reluctant to expand as long as builders cannot obtain credit and prices are rising fast. As NAHB Chairman Rick Judson says to MHProNews, “Restoring the flow of credit to home builders with viable projects and fixing the residential appraisal process will not only help to put America back to work, it will strengthen communities across the land and provide badly needed tax revenues that local governments need to fund schools, police and firefighters.”

(Image credit: rf123)

Measures before the Texas Legislature

February 15th, 2013 Comments off

MHProNews has learned from the Texas Manufactured Housing Association (TMHA) of the four measures in the hopper of the Texas Legislature that could affect the factory-built housing industry. HB 578 would establish state regulatory authority over modular housing, a bill TMHA supports because of the losses modular producers have suffered over the years. HB 944 would allow an exemption from license requirements for selling a limited number of manufactured homes. Since current law requires an MHC owner to obtain a retail license if he/she sells just one MH in 12 months, HB 610 would provide a limited exclusion to this requirement if manufactured homes were sold in conjunction with the sale of a manufactured home community. In response to a fraudulent MH dealer whose customers may be eligible for compensation from the manufactured homeowner’s Recovery Trust fund, SB 499 would allow either a jury or bench trial to determine eligibility.

(Image credit: City of Pecos, TX)

MHAO Cancels Show

December 14th, 2012 Comments off

In an open letter to the industry, Deanna Fields of the Manufactured Housing Association of Oklahoma (MHAO) says the 2013 Great Southwest Home Show has been canceled. Originally set to run Feb. 28-March 3, 2013 at the QuikTrip Center Expo Square in Tulsa, due to the economic climate, site contract payments due for the show, and response from MH producers and other vendors, the MHAO Board of Directors decided to pull the plug on this year’s show. MHProNews has learned MHAO is planning a show in 2014 when the economic forecast looks brighter. Noting the past four years at QuikTrip have been a great promotion for the industry, MHAO President Bo Radley stated, “We remain committed to providing this forum in the future and will continue the momentum in that direction.” Sources close to the Louisville and Tunica shows expressed their regrets about Tulsa’s Show, but say their outlooks are good for 2013. For example the Louisville Show’s attendee registrations are up, number of manufacturers are up and sold out. Louisville has also expanded their exhibit space. The popular Money Tree Seminars are also expanded. A special pre-show event is planned: Introduction to MH Opportunities day, linked here.

 

(Photo credit: MHProNews–QuikTrip Center)