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Posts Tagged ‘Star Parker’

Consolidation? Not just Manufactured Housing, Look at Banking – Similar Causes?

June 19th, 2017 Comments off

BankManufacturedHousingIndustryCompressionConsolidationRegulatoryPressureResearchDataChartsDailyBusinessNewsMHProNewsWhile manufactured housing “consolidation” is on the minds of thousands of MH industry professionals, a result of recent Daily Business News reports – or due to this manufactured home industry overview (click here) – it’s happening in other U.S. industry sectors too.

Since finance is a routine hot topic among industry professionals, MHProNews looks today at what has been transpiring – and why – in the U.S. banking sector.

The graphic below from Visual Capitalist (VC) charts the consolidation that’s been taking place in the banking sector for the last two decades.

Per VC, “The “Big Four” retail banks in the United States collectively hold 45% of all customer bank deposits for a total of $4.6 trillion.”

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They also note that, “The fifth biggest retail bank, U.S. Bancorp, is nothing to sneeze at, either. It’s got 3,151 banking offices and employs 65,000 people. However, it still pales in comparison with the Big Four, holding only a mere $271 billion in deposits.”

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Note that regulatory pressures under the Obama/Dodd-Frank/CFPB era are part of that trend. That’s why Star Parker’s recent comments – see the report, linked here – are relevant and insightful.

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Star Parker, credit, Wikipedia.

What Parker critiqued, VC described like this, “Of particular importance to note is the frequency of consolidation during the 2008 Financial Crisis, when the Big Four were able to gobble up weaker competitors that were overexposed to subprime mortgages. Washington Mutual, Bear Stearns, Countrywide Financial, Merrill Lynch, and Wachovia were all acquired during this time under great duress.”

They also point to a 2014 Federal Reserve study that showed that only 7 new banks had been chartered between 2009 and 2013.

FewNewBanksBeingFormedManufacturedHousingIndustryDataResearchReportsDailyBusinessNewsMHProNewsTo sum up, big banks and Wall Street are resisting changes to Dodd-Frank.  So apparently, they like the fact that regulatory pressures have pushed smaller companies out of business.  In a similar way, regulatory pressures have been a key part of the forces pushing manufactured home related companies into selling out or closing up – by the thousands, over the last decade.

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While manufactured housing is growing in new home shipment numbers, there is still consolidation taking place. There are new plants opening, including the recent story, linked from the image above.  Note too that regulatory pressure was part of what forced the closure of U.S. Bank’s otherwise profitable MH lending, and other industry lending, during the Dodd-Frank era.  Click here for one example of consolidation in MH Lending.

While there are new manufactured home communities (programing note: watch for an upcoming report) and HUD Code manufactured home production centers opening, the rate is miniscule. Regulatory, zoning, as well as other pressures are among the factors that point to that reality. ##

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

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

Star Parker, Draining the Dodd-Frank Swamp

June 16th, 2017 Comments off

StarParkerCUREdrainingDoddFrankSwampFMNT97PostedDailyBusinessNewsMHProNews647Wikipedia says that, “Star Parker is an American syndicated columnist, Republican politician, author, and conservative political activist. In 1995, she founded the Center for Urban Renewal and Education (CURE), originally the Coalition on Urban Renewal and Education. In 2010, she was the unsuccessful Republican nominee for the United States House of Representatives in California’s 37th District.”

The manufactured home industry and its consumers are widely seen as having suffered since the enactment of the so-called Dodd-Frank reforms.  While the Seattle Times and CFED were among those who have defended Dodd-Frank as it is currently being enforced by the Consumer Financial Protection Bureau, the industry’s lenders have all had to pay a price for this well-intended, but nevertheless harmful regulation.

U.S. Bank, several other smaller lenders, UMH Properties and others have been among those who were forced out of the lending arena, not because they weren’t successful.  Rather, they say, it’s because the regulatory risks were too great for the relatively low volume of loans being done. See the interview and article, linked here.

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As one of our sources in Washington, D.C. tells MHProNews, Dodd-Frank isn’t the only problematic issue that faces the industry.  There is also to this point a failure by the Government Sponsored Enterprises (GSEs) to do a meaningful level of chattel or other lending on manufactured homes.

Nevertheless, Dodd-Frank has driven up costs, said Triad Financial Services President, Don Glisson, Jr. While they were able to adapt, consumers and businesses alike suffer from an otherwise depressed level of sales.

Against that backdrop are the thoughts of columnist and conservative pundit, Star Parker.

Parker on the Dodd-Frank “Swamp”

“…The 2,300-page Dodd-Frank Act was passed to fix what supposedly was broken in our financial system that led to the massive financial collapse in 2007,” says Parker, in a new column published on sites like GOPUSA and many others.

The potential economic impact of the sweeping reforms of the Financial CHOICE Act are as far reaching as anything going on in Washington today. But you probably haven’t heard about it.

The press is filled with news about Russia, James Comey, Jeff Sessions. Yet hardly anything about this. Why?”

What Parker doesn’t mention is that there is no evidence for collusion between the Trump campaign and the Russians, as several Democrats and every intelligence service head has stated, on the record.

Instead, she points to an article on the Wall Street Journal, and then says, “Guess Who’s Defending Dodd-Frank? The answer is the nation’s biggest banks.”

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Star Parker, credit, Wikipedia.

She continues, “The full title of the Dodd-Frank law is The Dodd-Frank Wall Street Reform and Consumer Protection Act. The website of the Obama White House explained the law as “Holding Wall Street Accountable.

It attributed the crisis to the major financial institutions in New York,” states Parker.

 

You would think those same institutions, the nation’s largest banks, would be unhappy about all the new regulations that they now have to live with.

But, as the Wall Street Journal points out, these same banks are defending Dodd-Frank and opposing the Republican reforms.

This is really about the “swamp” that this new Republican administration is supposedly now in Washington to drain.

The “swamp” is about Washington business “special interests” working with Washington political “special interests” to make law that makes them both happy.”

Parker points to another expert, and then tosses a thunder-bolt, “As American Enterprise Institute scholar Peter Wallison points out, the Dodd-Frank Act was not produced after a serious investigation about what really caused the crisis. It simply was an opportunity for Democrats to take advantage of the crisis for major expansion of government.

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In news, commentary, and analysis, MHProNews was alone among industry news sources saying weeks before the U.S. Bank closure of their MH Lending program, that low volume sales were a risk factor for the industry, along with the regulatory burdens caused by Dodd-Frank, and other federal, state and local policies.

Given this reality, Wall Street gladly worked with Democrats to build a new regulatory structure that would provide them a nice, new feathered bed.”

She draws to a close saying, “Unfortunately, the small community banks, whose market share is now shrinking because of the Dodd-Frank regulations, have always been a major source of loans to small business. The arteries carrying capital to the grass roots of America have been clogged. According to Wallison, and other economists, this is a major reason why our economy is growing so slowly.

The House has done its work to fix this problem with the Financial CHOICE Act.

Now its [sic] up to the Senate, including the 11 Democrat senators up for re-election in states carried by Donald Trump in 2016, to step up and do the nation’s business and pass these critical reforms.” ##

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

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