Industry Voices

Manufacturers and other industry professionals I've spoken with often echo MHARR President, Mr. Danny Ghorbani's, concerns as outlined in the message above and the detailed attachment.

This important topic is worthy of your time to understand, and your interest or concerns should be addressed by posting here or by emailing Mr. Ghorbani at mharrdg@aol.com

As a matter of editorial policy, we gladly share a variety of viewpoints here at the http://www.MHMarketingSalesManagement.com trade journal. This and other topics of industry interest are welcome, please email latonyk@gmail.com thank you.

Tony Kovach – editor http://www.MHMSM.com

latonyk@gmail.com

Tony…thanks for showing our latest communication packet to the industry in your publication in toto. Please rest assured that MHARR is fighting back hard and these are all for good cause…these people in Washington are hell-bent to destroy this great industry…and the sad part of it is that some in the industry are actually, but unknowingly financing their own destruction by going along to get along.

I am on the Virginia state association board VAMMHA and have been trying to gather together lenders, investors, titling insurance, and other interested parties to meet and discuss the delimma we now find ourselves in. Manufactured housing has almost no place to go for mortgages unless it is 80% conventional financing and then the reguolations are sometimes prohibitive.

I am baffled by HUD's refusal to appoint a non-career Administrator for the HUD manufactured housing program as provided by Congress. My understanding was that just prior to his untimely passing, the North Carolina state association Executive Director, Steve Zamira, was on the verge of being officially named to that post. Since then I have have not even heard any rumors.

Last Friday, AP writer Carly Everson, writing in the online edition of the Washington Post, posted “Push to send FEMA trailers to Haiti stirs backlash.” While discussing both sides of the issue, Ms. Everson notes that there is a significant perception that this would be a “crass and self-serving attempt to dump inferior American products on the poor.”

There have also suggestions that empty shipping containers be sent to Haiti to provide shelter, although I've never seen a clarification of whether this would be an attempt at a temporary or permanent solution. Shipping containers have been used in these situations before, just dumping them without significant upgrading wold provide subsistence living at best.

There is also discussion in Congress to to consider newly manufactured housing units, made by American manufacturers in the relief and rebuilding effort. Now would be a good time for those interested in seeing the American manufactured housing industry take part in this effort – bring housing to Haiti and jobs to America – to contact their Senators and Representatives and make their feelings known.

Haitians could be trained to PROPERLY install a manufactured home and do finishing work, providing jobs for some of them as well.

You can read the Ms. Everson's Washington Post story at:
http://www.washingtonpost.com/wp-dyn/content/ar…

Your Senator or Rep. can be contacted vis;
http://www.usa.gov/Contact/Elected.shtml

Now is the time to have your voice heard on this issue.

Right on, Bob. I've got a new Industry Voices message in earlier on this topic from a manufacturer/builder who understandably would like to this discussion advance.

If, IF the Industry pulls together and sounds off to Congress
http://www.usa.gov/Contact/Elected.shtml
to move this ahead, there is a realistic opportunity for U.S. factory home builders to get orders for this cause. Failure to act in an organized fashion could result in some other option – such as steel containers – to be advanced instead.

While the Industry needs to have a multi-pronged approach to rejuvenating sales, it only makes sense to have 'American built homes for Haitians' as a possible component.

Inaction is the enemy.

[...] http://www.mhmarketingsalesmanagement.com/blogs/industryvoices/legal-and-legislative-update-very-imp... [...]

[...] http://www.mhmarketingsalesmanagement.com/blogs/industryvoices/intime-time-management-video/ [...]

[...] http://www.mhmarketingsalesmanagement.com/blogs/industryvoices/building-a-community/ [...]

Thanks Marc for sharing this, will do.

Great post, Suzanne. Thanks for taking the time to write it.

Your idea of industry representatives using Facebook and Twitter to tell the world what a great product manufactured housing offers is right on the money (literally).

And linking into a huge Facebook and Twitter network to spread the word could go a long way toward changing the public's perception of manufactured housing. If the network grows to a sufficient size, with all members touting the quality of mfd housing, the momentum of public opinion could be swayed in our favor.

To start the ball rolling, I suggest that everyone who reads this post start by clicking your links above and following you on Twitter and becoming a fan on Facebook.

Next, follow us at http://twitter.com/mhmsmcom and become a fan of our Facebook page at: http://www.facebook.com/pages/Manufactured-Hous…

Then, come back here and post your twitter id in a clickable format like this:
http://twitter.com/yourtwitterid

and let us know if you have a Facebook fan page that we can subscribe to.

They're called SOCIAL networks for a reason. Once we all begin to asSOCiate, we'll start building a network to revitalize the industry's public image.

Do it right now. Tomorrow is just around the corner and we want to make tomorrow our's.

Very exciting! I love the idea of our industry being able to do an image campaign without a huge cost. Count me in! See you at Congress-

This is a huge issue for all community owners and dealers who offer in house and outside financing for manufactured homes as part of the day to day business plan. As if we need anything to make the job of moving housing inventory and harder? My business Creative Financial Solutions with with dealers in supplying wholesale, pre owned inventory in the Mid West. Most of these folks offer seller financing because they have to inorder to keep communities and acceptable levels of occupancy. We also trade in pools of loans secured by manufactured homes allowing sellers to free up capital trapped in these loans. With financing so hard to come by these days it is important that our industry members voice opinions about these rules and how they are applied before it is to late!

Our time has been spent researching the best product for the dollar available on the market today! We found an amazing Amish Built product that nails the bullseye of our markets demand in quality and pricepoint!
3be. 2ba. log sided dbl. for $49,995…Highly energy efficient and built for the cold climate!!
http://www.rockymountainhomes.us

Additionally, post high quality photos and videos of products on sites (such as Youtube) hen post those to you Twitter and Facebook and Linkedin accounts
It's a great idea that takes just a little time and no $$ – but amplified by thousands could create an awesome community of MH pros sharing

Well said John-
Having been a factory rep for a number of years, and interacted with hundreds of retail salespeople myself, I would challenge each one to do these 3 things EACH day for the rest of the year, track and measure. I bet it will pay off- and cost $0
First- Sign up for a Youtube, Twitter & Facebook account -then,
1- Follow 5 people on Twitter & Friend request 1 person on Facebook
2- Post 1 video or photo (promoting MH) to YouTube or other media site linked to your Twitter & Facebook account
3- Read 3 blog posts from any source (local schools, NASCAR, cooking, MH industry, it just doesn't matter) each day and comment
These 3 steps are all about building YOUR brand – as THE home consultant to work with.
Try it- it's can't hurt- and may succeed beyond you expectations!

Exactly, Scott. Great point. Flickr is also a great place to post photos and properly captioned photos on Flickr can get great SE ranking as well. Linking to YouTube videos and Flickr photo sets from your Facebook and Twitter accounts can produce good results. My YouTube videos and some FLickr photos are watermarked with my website information. I also often allow watermarked photos posted on Flickr to be used by others with a Creative Commons attribution license- let others use the photos while advertising my website.

Hey John,

It's nice to see your expertise back in circulation with the MHMSM. I missed your monthly articles from the Merchandiser days. You always have good insight and provide a positive direction.

The number of on-site training days you spent with our organization a little over a year ago continues to influence the way I conduct my personal sales efforts and the success I have in managing the sales process. Your comments in this article ring true in a retail setting. Your experience is proven beyond theory as it works for me everyday.

I'm happy to read that you will be a regular contributor in this great publication!

Best regards,

Great work ethics spelled out by the best sales trainer to have ever been to our sales center. The material that John Underwood provides here while basic is often overlooked and will reward our industry's retail outlets if practiced. Even headed into my 40th year in the industry, I look forward to the future articles John indicated he will provide as I know I will learn more or be reminded of things I need to do. John's article is excellent and retailers across the should appreciate his willingness to share his knowledge. John was also recently interviewed for Builder Radio's weekly Monday Morning Sales Meeting. More great advice from John Underwood and it can be found in Builder Radio's archive section in the month of February.

Update From Donna Bauer of http://donnabauerblog.com

Hey! I’ve got new information for you on the HUD SAFE Mortgage Act. Word has been going around that some states have successfully circumvented the proposed HUD rule that would require all sellers who offer seller financing on non-owner occupied properties to obtain a loan originator’s license (unless they are an attorney or licensed real estate agent). This is not true! States cannot supersede HUD’s Proposed Rules!

Here’s what I got direct from HUD today:

“HUD will determine the minimum standards for SAFE compliance once the comments are reviewed and decisions made. States cannot exempt individuals that HUD determines must be licensed but can require additional categories be licensed.”

That means that states cannot supersede HUD by passing their own legislation. In other words, it is absolutely critical that we stop this at the source by continuing to flood HUD with comments objecting to this blatant violation of our property rights.

http://donnabauerblog.com/2010/02/25/update-on-…

Many potential buyers of manufactured housing, specifically in rural areas, are not willing to take the time to sit down and figure out how to fill out the application for financing on their own. Many consumers are not aware of how much of a downpayment is needed to purchase a particular home or to qualify for a particular loan type. Also, we have heard potential buyers comment that the customer “should not have to fill out the credit application personally” since that is the main reason that they are dealing with the salesperson, in order to receive assistance in all aspects of the homebuying experience. It has been expressed on several occassions in the past week at our store that the task of filling out the application according to what information the borrower provides is a service that the prospective buyer expects to receive. The burden of figuring out how to successfully complete a credit application without any guidance has had a negative impact on many potential buyers and they have voiced this opinion.

In a reply to correspondence with President Barack Obama by our editor, here is the message that came in from the White House.

In a reply to correspondence with President Barack Obama by our editor, here is the message that came in from the White House.

Suzanne,
Kudos on your new contracts! You and your work certainly deserve it and more.

Thanks for sharing this story. Did you also run across another magazine article online you'd like to ad below? Please keep up ALL your fine work on behalf of the Industry!

[...] As Tim Connor says, What is your lost business costing you? As John Underwood says, you can Flourish or Perish in 2010. As Mike DuPure – a gent who knows first hand how to close double digit sales in a month [...]

[...] about Time. How will you use your time? The next 60 seconds? The next hour?  The next day, week, month or year? Tick-Tock. [...]

Bill,

What will probably be my last contribution prior to retiring at the end of this month, I might as well add my thoughts to your request for feedback on ASTM or ISO certifications for inspectors. Keep in mind my opinion is based upon what happens in the northwest and may not apply to all. The thoughts also reflect my 36 years in the industry, 15 years in all aspects working for a factory and 22 years as an IPIA and SAA.

First, with a little of my cynicism, Toyota is a Tier 1 ISO 9000 client. So are some of the other automobile manufacturers. That should tell you something. I am not in agreement that the situation requires increased inspector certifications.

To use an old axiom, “Quality is Built In, Not Inspected In.” There is much truth to this. Inspectors can hold a factory accountable but they cannot make the quality any better when the inspections occur as they do under the current inspection system. It is up to the factories to produce a quality, conforming home. In the northwest, I do not see the problem stemming from production.

Many years ago my observation was that there were three main problems our industry creates. How the home is sold, how it is set, and how it is serviced. Notice that production was not and still is not the problem. Nearly every homeowner I have met has told me they expect to have a few problems when the home arrives but they expect the problems to be resolved quickly and professionally.

In the northwest, about 20 years ago, we took on problem number two, how the home is set. Through licensing laws, code development, and holding people accountable for the installation, Idaho, Washington and Oregon were able to get a handle on installations.

The two remaining problems, how it is sold and how it is serviced are what we should be focusing on, not inspector certifications. I have been involved in probably 10,000 or more consumer issues during these years. The majority of the time the problems relate to the sale of the home or the delayed or debated service activity.

How a home is sold relates to promises by the dealer, changes in specifications, purchaser misunderstanding or expectations, contractual issues, and how long it takes from sale to move in. This is probably not in the HUD arena but could be better addressed at the state level. I could have done better with this during my career and certainly the dealerships could have done better.

The other issue is how a home is serviced by both retailer and manufacturer. Again, I could have been better at this with the tools we have available. The problem, however, has been that by the time the regulator is aware of the problem, it is a problem. If states, SAA's and HUD focused more on the mentality that, “OK, we messed a few things up during construction or installation but let's get it fixed quickly and properly…” we would not have as much of the consumer dissatisfaction that we hear from time to time. Industry would shine.

I certainly disagree with the assertion that our “reputation” is what has caused the decline in sales. As Mike Zieman observed, it's the economy and the lending issues that have hurt our northwest industry. That coupled with zoning and planning restrictions and you have the loss of sales. It is in no way related to whether or not our inspectors have an ASTM or ISO certification.

We can all do better and we should do better. If HUD is really going to start some additional certification program requirement I would defer to Dave Tompos' suggestion that we have a certification that relates directly to the industry and how we do things. Have industry and one of your agents help HUD develop a training/certification program that trains both industry and inspectors on how to make this industry better, not on having an ISO certification or the time spent on the total QA assessment paradigm.

So, ladies and gentlemen, it has been a great industry for my career. For those of you who I have worked with or against, I have enjoyed it all. Best wishes to all of you and please help this industry by staying out of the way and helping where and how best you can.

Albert Endres, Chief
Manufactured Structures
Oregon IPIA/SAA

Albert:

Thanks for both your comments and long service as a compliance agent for HUD. The fact that you have been involved in so many service issues over the years makes me wonder how many fewer issues there might have been if we had all been focused on quality systems in the plants rather than simply identifying production defects. Now that we’ve turned that corner, we simply need to know that the IPIA inspectors are capable of evaluating quality systems.

All the best for your retirement.

Bill

well, i think there are more seo tips i like this site!

A home is not a car. Construction costs that are a third or half as much as traditional, site-built homes because the parts used are of the lowest quality and the people building them are unskilled and have no pride in the end product.

People refer to these as mobile homes or trailers. A rose by any other name is still a poorly constructed home. Price is the only selling feature. If price was not a factor no one would select a manufactured home. The industry has sold price since its beginning.

Manufactured homes in parks continue to depreciate. Their value drops every time the landlord bumps the lot rent. Manufactured homes on land tent to appreciate like the properties around them. Unfortunately they are surrounded in most location by other mobile homes and so become less desirable over time

John,
You are right, a home is not a car. However, you are not accurate on a number of the points you made. MH homes today are federally regulated and required by law to perform the same as conventional construction. Quality and components are federally regulated – no getting around it! The article posted was actually intended for industry professionals, perhaps you are not from our industry? The point is that the media can and does give positive reports on our industry when the reporters/editors do a fair job and do their home work.

I would agree that some misuse the 'names' for the home you mention, but that doesn't make it accurate. I'd lightly agree that while you can get an 'entry level' home that isn't as fancy, the construction itself is still solid, well insulated and safe – that's the law! So you can get everything from a fine basic home to the huge modular mansion.

Manufactured Housing Association for Regulatory Reform would do better to teach its memebers about customer service instead of working so hard to build a cheeper product by way of deregulation.

Chrissy, welcome to the http://www.MHMSM.com writing team! We look forward to sharing your articles in the issues ahead. Happy Easter to you and yours, Tony

[...] Chrissy Jackson [...]

John appears to be seriously misguided. Asserting that construction costs for manufactured housing are 1/3 or even 1/2 of conventional is absurd and to then assert that the difference is due to the use of inferior materials even further demonstrates a disconnect with reality. I guess John has never figured out what Henry Ford discovered about 100 years ago. An efficient assembly line process significantly reduces labor costs. The process saves money and increases efficiency and quality control whether it is a car coming down the line or a house.

The over reaching claim that the parts are low quality and workers have no pride is a baseless statement just totally pulled out of the air. Having recently toured 81 homes on display at the Tunica Show, the overall feeling that I developed was that every manufacturer there had built great homes (materials and workmanship) that they could take an enormous amount of pride in. Having spent almost 15 years in code development and enforcement through both the NFPA and the Manufactured Housing Consensus Committee, I have first hand experience of the demanding performance standards of the only Federal building code in existence and in the the stringent role the government takes in enforcing those standards.

All construction depreciates when separated from real estate and it will do so regardless of how it was initially constructed. Numerous studies done by organizations outside the industry have shown repeatedly that the the placement of manufactured housing does not depreciate surrounding properties and in some cases such as the original project done Cincinnati's Potterhill Homes. The surrounding stick built homes increased dramatically after the installation of even just the original 15 manufactured and modular homes.

Of course the industry sells price. Our method of construction can give us a price advantage that we would be foolish to ignore. Henry Ford also focused on his price advantage. John is obviously not a fan of our industry and we will never make one of him. Our assembly line method of construction does allow our industry to provide quality affordable housing to many who could not otherwise own a home. Those are the ones we speak to.

Suzanne has written very well articulated observations. As a fellow attendee I think Suzanne has expressed the flair of the Tunica Show to a T. I thought all of the manufacturers brought great looking houses but agree with Suzanne that a few stood out. We look forward to Suzanne's (and hopefully you other readers) visit to The Great Southwest Home Show (the only indoor show in the nation) in Tulsa on April 29th and 30th.

I would like to see the mobile home communities start filling up. If homes are being built where are they going? We used to have a waiting list because we are a very beautiul senior community. The price of new homes are limiting our clients to buying used homes not new, and good used homes are hard to find.

Finally , a piece written that must be required reading for every newbie to the industry and the seasoned that have lost thier way.

Remember, Nero fiddeled as Rome burned ! Did they sell Buffet puppets after the concert ?

I would like to know how reliable are these type of houses against earthquake and hurracans.

[...] MHARR and MHI have in their own ways come out with statements on the pressing needs in our industry, and financing tops the list of both associations. Leaders from both national associations assure our readers that they have and will focus on issues such as finance, implementation of MHIA 2000 and work to protect pre-emption. [...]

[...] can or will work is a recipe for business closure. Don Westphal passed along a timely message for Industry Voices this week that I think we all should take a few minutes and follow up [...]

[...] week, Don Westphal sent us an Industry Voices Guest Blog post on the topic of HR 5019. The bill past the House and is now headed on to the Senate [...]

Great photos. As in Tunica, the houses at the Great Southwest Home Show were top notch. Our industry should be proud of what we are building.

[...] done reports for us on the Tunica and Tulsa manufactured housing shows this year.  Great write ups, well thought of replies from our [...]

[...] Danny Ghorbani has been on the Manufactured Housing scene for something like 2 decades.  As the head of the Manufactured Housing Association for Regulatory Reform or MHARR for short, Danny is a newsmaker and reports from MHARR and MHI alike are showcased on our pages every day. [...]

[...] done reports for us on the Tunica and Tulsa manufactured housing shows this year.  Great write ups, well thought of replies from our [...]

[...] has written for the INdustry Voices Guest Blog includng a report on the Great Southwest Home Show in Tulsa, OK.  He also did a very popular “A Cup of Cocoa with Doug Gorman” and a well [...]

When is the MHI and its constituents going to understand they need to get out of the chattel business and into land/home deals. THe majority of homebuyers today are wanting a “real home” that will appreciate it value.

It is time HUD Code producers gave more than a casual thought about converting to fully code compliant modular products.

Mods0844, I agree with you that the majority of homebuyers want a home on land of their own. And many HUD code producers also make fully code compliant modular products as well.

But there are a LOT of Land Lease Communities out there and more coming. That is a significant market and it is only served by the HUD-Code housing industry. It might be a minority of homeowners but it is a minority too large to ignore.

Great post, Greg. This measure effects homeowners in communities as well as the community owners. They need to be alerted to the impact of these decisions on the biggest investment of their lives. It's important that this angle was brought out into the light. Thanks for bringing it to our attention.

Dear FHFA officials,
Congress in its wisdom gave us the Duty to Serve provisions for manufactured housing financing. I live in a manufactured home in Sunset Village, Glenview IL. I can tell you first hand how important it is to have this sort of workable home only financing. We live in a home that looks and lives like a conventional house, it is less than 5 years old. We are in a neighborhood that is being updated and improved by the owners of the community. To make some area housing comparisons: to the south are condos 45 years old that sell for 3 times the price of the home we live in. To the north are townhouses that are less than 10 years old, they sell for 5 to 10 times the price of the home we live in. They have home owner association fees, we have site lease fees. We pay less in taxes and fees than they do. But they have a financing advantage that we do not have! FHFA regulations that would make the playing field level with conventional financing for conventional housing would make it easier for millions to buy and sell their manufactured homes.

Across the street from where my family lives are two story HUD Code homes. They are stylish, beautiful, safe and durable – it is required by federal law! Why should they – or we – have to suffer under financing terms that are unequal to conventional financing?

Let's not forget that manufactured housing is made in the USA! We need to protect and grow this vital job segment.

Sometimes officials say that manufactured housing loans 'don't perform as well' as conventional housing. In the aftermath of the sub-prime real estate meltdown, I'm not sure that is a valid argument any more. There are and will be households that don't make as much money as others, and they will be more vulnerable to economic issues. In other words, it isn't the house, it is a question of the income levels of those served. But if the government gave the same treatment to Manufactured Home owners that it has to those caught in the subprime mess, if MH owners had the same bail out programs and 'let's keep people in their homes' programs as those who get conventional financing, don't you think it would be easier and better for manufactured home owners too? Of course it would!

Equal treatment under the law! That is what manufactured housing deserves! The federal government regulates this industry and form of construction. Manufactured Housing is designed to perform the same as conventional housing, but at a lower cost, by the terms of the federal law known as the HUD Code. If you give unfair/preferential treatment in financing to 'conventional housing,' you are penalizing some 20 million manufactured home owners and the millions more who could or would buy if the homes had absolutely equal footing in financing.

You can't discriminate against races, religions, ethnic groups and a host of other groups. Why should the federal government tolerate any type of discrimination against a housing type it regulates?

I'm asking you to level the playing field for manufactured home owners and residents like myself.

I would observe that modern manufactured housing compared to conventional building – according to insurance and other studies I've seen – is as more energy efficient, as or more safe against a fire, lower maintenance costs, etc. Even if these home loans didn't perform as well, think about the billions of dollars the economy saves in the cost of buying and owning these homes!

Finally, and a topic I don't here mentioned often. If people can't buy manufactured housing that is affordable, what do they turn to instead? Many will have no choice but to rent in subsidized housing! That is silly public policy! Why give billions to rental property owners, that often have older, less energy efficient houses, when much less money could go to supporting a greener, more energy efficient home that will create home owners and American jobs!

Thank you.

Soheyla Kovach

Good stuff.

My suggested talking points for Congressional Representative, your US Senators and the FHFA

You can use a format like what MHI or your state association has provided, or you can write your own message. MHI and Kovach are right, the key is volume! Don't put this off, we have 3 days to act, so write now and then tell your friends and co-workers to do the same.

1.Congress has already required this Duty To Serve (DTS) Manufactured Housing. It is the law.
2.The intent is to make financing easier for manufactured homes.
3.There are about 20 million manufactured home owners. All of them are impacted in terms of resale ability when financing isn't readily available.
4.A lack of financing hurts retailers, community operators, manufacturers and suppliers.
5.All this means without proper financing, it costs jobs, with financing it creates or protects jobs.
6.There are excuses that can be given 'not' to comply by the FHFA, but they are just that – excuses. Chattel lenders and private money lenders make these loans profitably and successfully, so can the government.
7.Equal treatment of manufactured housing and conventional housing ought to be sound public policy, and it is de facto the law.
8.The DTS and easier financing will save the government money in the long run, because subsidized rental housing can be avoided.
9.It is worth saying again, Jobs and Economic benefit! But also greener building, energy savings, the government and media love hearing those words!

Modular builders may not realize it, but this matters to them too. Like it or not, the HUD Code product influences Mods, and vice-verse. Everyone involved in factory built housing is impacted, suppliers, insurance companies, lenders, customers, everyone! Everyone should write and get their cousins and associates to do the same.

http://www.mhmarketingsalesmanagement.com/blogs…

gives you the links you need to write FHFA and Congress.

Having served the Manufactured Housing industry for over 20 years as a speaker and trainer I can tell you that the Federal Government is not looking out for homowners, communities or Manufactured Housing manufacturers and that their decisions are grounded in arrogance, ignorance and a total lack of understanding of what Americans want and need and what the housing industry needs to thrive and create jobs, affordable living and a sense of emotional and economic freedom. Just one more example of the disconnect between the government and its citizens.

Greg, great points, I've written FHFA, my 2 senators and Congressman. Thanks for your leadership on this key issue for the MH Industry! Tim Connor

Ken Rishel just submitted an Industry Voices post at:
http://mhmsm.com/10/364

In it, Ken is rallying the industry to TAKE ACTION NOW and write to FHFA, their Senators and Congressmen.

I've made the point before that this is critical to the industry. We here at MHMSM.com have taken the time to send those letters and emails.

Now we need everyone who reads this to do the same.

Ken is sending this to 9,000 subscribers on his mailing list. MHMSM.com has repeatedly sent it to our list.

Please take the time to send this on to your mailing list of employees, residents, customers, colleagues, etc.

The DEADLINE FOR COMMENTS IS JULY 22, 2010. That's two days from now. There is no more time to waste. Get it done now!

From rural America in SW Colorado, this is what I wrote my Congressman:

Dear Congressman Salazar,

I sadly must admit that this is the first time I’ve ever written a letter to my Congressman. I realize you need to hear from your constituents to know what is important to them and because this topic affects so many of us, it is my hope that this letter reaches you.

Because much of Colorado is rural, manufactured homes make up a large part of our overall housing choice. A family who wants to keep their agricultural property separate from their home will select a manufactured home and subsequently offer a piece of the farm to their children as they grow up. This next generation will also choose to keep their home separate from the land because they do not want to subdivide the farm. I would venture to say that many of us who earn a modest income in our rural communities find that a manufactured home is our only way to enjoy homeownership. Young families, retirees and everyone in-between select manufactured homes in this state because it is their best housing option.

With this as the backdrop, the decision by the FHFA to exclude loans on manufactured homes from their proposed rules to implement the duty to serve underserved markets as outlined in HERA will be financially devastating to existing and future manufactured homeowners. If the GSE’s do not offer loan programs for manufactured home homeowners, the financing available to potential home buyers will be severely limited, costly or non existent.

In brief, I along with 18 million other Americans who enjoy homeownership today in a manufactured home, ask that you request that the FHFA amend this rule.

In time of war, as our naval fleet traveled to the field of battle, they elected to travel at the rate of the slowest vessel because they were only strong as a fleet. Our nation remains the best place in the world to live because we have found ways to make sure a broad range of our citizens have a way to enjoy homeownership. Are we all able to be on the fastest and fanciest vessel? No, but we are all a valuable part of the strength of the overall fleet and the strength of this nation.

I propose to you that this is a significant issue that threatens to impact the strength of this nation. Since 1989 manufactured homes make up 21 percent of the overall housing market. That just happens to be 2 of 10 ships that make us capable of maintaining our way of life – especially in rural America.

I respectfully thank you for your time and implore you to become involved in this vital issue.

Kindest regards,

Greg McClanahan

Thank you Greg for making us aware of this rule and the impact it will have on the MH community.

Great work by Greg, Ken, and the entire MHI-National Communities Council.
We expect that several hundred letters by residents, the individuals most affected by this initial decision, will be submitted as a result.

Here is the text of the letter residents can use in case anyone has trouble locating it:

Mr. Alfred M. Pollard, General Counsel
Federal Housing Finance Agency
1700 G Street, N.W. Fourth Floor
Washington, DC 20552
EMAIL: RegComments@fhfa.gov
Subject Line: RIN 2590-AA27

Re: Duty to Serve Manufactured Housing Industry RIN 2590-AA27

Dear Mr. Pollard:

I am one of the roughly 10.8 million people who own and live in a manufactured home and reside in a manufactured home land-lease community. Please consider this letter as a response to the Enterprise Duty to Serve Underserved Markets Notice of Proposed Rule Making and Request for Comments (RIN 2590-AA27) released June 7, 2010 by the FHFA.

In its proposed rule, FHFA indicates that it will not consider supporting manufactured home personal property loans. I am adversely affected by this proposal. Manufactured housing is a key segment of the housing market. Without manufactured housing, millions of families would not even have access to the American goal –and dream – of owning a single-family home. FHFA’s initial decision to exclude personal property lending considerations from the GSEs’ duty to serve denies millions of Americans the opportunity for homeownership.

Access to a personal property loan is already very difficult to obtain, so participation by the GSEs in this market is critical not only to ensure opportunities for homeownership, but also to provide financing for buyers when existing homeowners need to sell their homes. Market values for resale manufactured homes are severely depressed today because of the lack of available financing, and many families like mine have been hurt as a result. In many cases, families that needed to move for family, health, job, or economic reasons have been unable to sell their homes at any price due to the lack of available financing. Denying us financing opportunities is unfair and can severely reduce the value of my home. It can destroy equity many have worked so hard to build.

As a taxpayer, I appreciate the concerns raised by FHFA to ensure the GSEs remain economically viable institutions and that adequate consumer protections are in place. But FHFA and the GSEs also have an obligation to serve manufactured housing and the 10.8 million Americans that currently reside in manufactured home land-lease communities. I believe the manufactured housing industry stands ready to address personal property lending issues identified by FHFA in the proposed rule in a substantive and productive manner that results in economically viable programs that also serve these woefully underserved markets.

The proposal by FHFA fails to serve the families who enjoy the benefits and the ability to live in manufactured homes and manufactured home communities. As a manufactured homeowner, I urge FHFA to amend its proposed rule to also consider manufactured home personal property loans as part of the GSEs duty to serve.

Thank you for your consideration of these comments.

Sincerely,

[...] http://www.mhmarketingsalesmanagement.com/blogs/industryvoices/it-is-time-to-stand-up-and-be-counted... Ken Rishel, Precision Financial [...]

[...] http://www.mhmarketingsalesmanagement.com/blogs/industryvoices/gses-duty-to-serve/ Greg O’Berry, Hometown America [...]

[...] http://www.mhmarketingsalesmanagement.com/blogs/industryvoices/transcript-of-letter-from-mhi-executi... Thayer Long, Manufactured Housing Institute [...]

[...] http://www.mhmarketingsalesmanagement.com/blogs/industryvoices/action-alert-action-needed-by-72210/ MHI Call to Action [...]

Congressman Jones, you are from my home state, and it is a pleasure to see an elected official take the types of stands and actions that you have in this interview, sir.

This interview has a number of compelling points, as well as some interesting nuances, for example, it is obvious that Congressman Jones went to a Clayton Homes retail center, walked homes, talked to customers, has a first hand experience with our great manufactured home industry and the quality homes the Industry provides to millions, and can to millions more. Hats off to all involved in this!

Tim Connor, CSP
Davidson, NC

Mods0844 – I believe you will find that Title II is up and working, and MHI deserves a lot of credit for that. Your view is somewhat myopic because chattel business is the backbone of the industry in most of the country. I would challenge your sweeping statements and idea construction. “Real homes” are made by the people that live in them, not by the method of construction, and while there are greater and lesser community offerings, many people if exposed to what living in a greater community offers would chose community living in a chattel financed HUD Code home over living ten miles from town in a modular.

The point is, MHI represents both points of view, as they should.

This is exactly what we need. Have our Congressmen and Senators see our homes, see our retail sales centers, visit our communities. Thank you Congressman Jones for taking the time to do this. It makes me want to do the same type thing for my operation. Thanks MHMSM for bringing us this wonderful interview!

“Real homes” are made by the people that live in them, not by the method of construction.” Wow, never were truer words spoken. Way to put it in perspective, Ken. Chattel finance remains a crucial part of the industry for those who chose to live in communities.

A very refreshing interview. This congressman is an example of why I oppose term limits. If you have a good one you want to keep him/her.

I agree with you 100%, Doug. We already HAVE term limits – they're called “ELECTIONS.” If people are too lazy to keep up with the issues and vote, that too is a valid choice in a democracy. Not a good choice, but a valid one.

Actually, the numbers MHI suggests of HUD Code homes being sold as chattel/home only dwarfs the numbers being sold as part of a land home package. Sometimes our prejudices are injected into our thought processes, and thus our vision is skewed. The HUD Code manufactured housing industry is a key and viable part of the U.S. Housing landscape. Warren Buffett must agree, because he has invested billions in the HUD Code Industry and related financing, precisely as chattel!

America is well known to be about options, about choices. Thankfully, we can sell HUD Code homes as home only, and some 60% of the financed buyers like that option! That means 40% prefer land/home. Mod production isn't measured the same as HUD Code is, but the numbers are similar, perhaps an edge to the HUD Code industry.

Congressman Jones, I too am from North Carolina. I would like to note that you are truly a born leader. Walking the homes shows that you inspect what you expect. Your interview is very refreshing.

Great interview, great straightforward answers to the questions. Hopefully something can be done with financing soon.

[...] effort ‘started’ publicly with a call from MHARR, followed by a series of ‘call to action’ messages from MHI, all of which were reported here in [...]

[...] last week’s exclusive Industry In Focus interview, the Honorable Congressman Walter Jones made many important points about the Safe Act, financing, his positive impressions of manufactured [...]

[...] businesses had their own initiatives to ‘rally comments for financing’ – I’d like to note Greg O’Berry from Hometown America and also Ken Rishel of Precision Financial/Chattel Finance News for their [...]

[...] publicly with a call from MHARR, followed by a series of ‘call to action’ messages from MHI, all of which were reported here in complete detail at [...]

[...] comments for financing’ – I’d like to note Greg O’Berry from Hometown America and also Ken Rishel of Precision Financial/Chattel Finance News for their respective efforts.  Our team and I at [...]

i like this site!

DG is right, we need more clout in DC with regulators. The question is how?

Proper organized effort and consistent outreaches. This is as good a place to start as any.

[...] A. ‘Tony’ Kovach Manufactured Home Marketing Sales Management or MHMSM.com 847-730-3692 or [...]

The only area I would differ with Dick on, is that there is another reason to be engaged in captive finance that goes beyond necessity. Done correctly, it is very profitable, and if structured correctly, 100% recapture of funds through portfolio sales is not only possible, but normal. We have clients doing it every day.

[...] http://www.mhmarketingsalesmanagement.com/blogs/industryvoices/study-suggests-cities-and-towns-shoul... [...]

We will still need a VERY GOOD game plan from the new elected, not just NO, or half baked left overs, or same old same old. BANKS are still discriminating against mfg. homes, with more rules, higher rates, and bad attitude. After 43 years We need more and new help for America’s most affordable HOUSING. Don Gedert

[...] See Thayer Long’s blog post today in Industry Voices for his take on what it will require to give the Manufactured Housing industry the place at America’s housing table that it has long deserved. [...]

This makes sense. We do need to protect preemption and get financing that is equal to the rest of the housing world. What I don’t get is why HUD is so tough on our Industry, when their own reports indicate that complaints are down?

[...] Thayer Long from the Manufactured Housing Institute (MHI) will be joining us this week on a periodic basis in our Industry Voices Guest Blog. As regular readers of http://www.MHMSM.com know, we already showcase news from both MHI and MHARR, as part of our effort to provide fair and balanced information and perspectives from a variety of manufactured housing industry leaders. [...]

rnWishing and hoping just wont make it so. Manufactured housing has yet to realize its tremendous potential because the industry continues to ignore the needs of its customer base. rn rnThe folks that pay to engineer the homes and write the installation manuals pass responsibility to local sales operations?. What would you really expect a sales guy to know about foundation work or structural integrity? rnrnAs long as any home builders refuse to accept responsibility directly for end user satisfaction we will continue to be marginalized, by and ever expanding number of dissatisfied customers . rnrnWhen the builders are ready to stand behind their products the industry could succeed.

The return of the Louisville MH Show is an important signal to the entire industry. It should be treated as such, and I think it will draw more people than in recent years. Sometimes, when you lose something and miss it, you treat it better when you get it back.

Even in Kansas, the Louisville Show was a big deal for many of my peers. I think this is an important message to all that the Industry is moving ahead!

Going to Louisville every January for the business was as automatic as Christmas for the family. Great timing, see the latest models all under one roof, the networking, vendors, etc. Can’t wait to go again.

Momentum is important in business and in sports. The Louisville show is both history and for a big part of the country, the future too. I’m in.

The Louisville Show has always been an important of my business for a couple of reasons: 1) Central location makes visiting this show easier to attend from my location, and 2) the time of year is perfect as it allows me to see various manufacturers offerings with plenty of time to order for the Spring/Summer season. I am really happy that this show is coming back and I hope there will be plenty of homes to choose from.

The revival of the Louisville show is important to the industry. I also believe the manufacturers should see the sales support they need to justify the expense of exhibiting, given the interest of community owners that are just beginning to understand the importance of selling new homes.nnDennis Hill has done a good job of putting together some bonuses for attendees in the way of educational programs that normally people would have to pay for to attend. Because of the extras, and the hunger for information, I would think there would be a very strong turnout. nnThis show needs to happen.

The return of the Louisville show is a welcome and hopeful sign that our industry is on the rebound. We have some of the brightest, creative, and engaging minds of ANY industry, and coming together to talk about issues, discuss product and services, and socialize will help further that hope. I hope to see many industry peers there!

I attended my first Louisville Show almost 4 years ago and I was stunned by what I saw, despite the fact my husband, Ken Rishel, was telling me how much smaller it was than in previous years. I was stunned again the following year by the fact that only two manufacturers chose to display, and was saddened by it.nnI take pride in the fact that I, Donna Rishel, am going to be a part of the revival of this august institution as a speaker on legal and compliance issues for owner assisted financing during the educational workshops Dennis Hill is offering at this show. I believe the workshops alone are well worth the trip, but I also believe that the manufacturers are going to be very happy with sales made during the show by clients of Precision Capital Funding and other community owners and retailers who are finally understanding the value of new home sales in communities.

Louisville has always been such an important show and a benchmark for our industry. If we are to succeed, retailers and community owners need to show their support of these shows. There’s nothing worse than having a party and no one shows up… manufacturers make a huge financial and time investment to bring homes to these shows – we need for the buyers to step and and show the manufacturers they appreciate this effort. And if manufacturers know that more customers plan on attending, they will bring more homes -it can be a win for everyone involved.

[...] http://www.mhmarketingsalesmanagement.com/blogs/industryvoices/mhi-pac-and-the-upcoming-midterm-elec... [...]

Well said. I can’t imagine why some want to get the vote out for candidates that created the SAFE act.

Insightful, thanks.

The tone of this letter from Stupak is so different from what has been told us by various industry leaders about the duty to serve. Mr Spanos, thanks for sharing it.

This site has provided the most MH industry centered election news I could find. Well done.

Thanks for giving a quality analsysis! I have friends in this biz who are suffering due to SAFE, lack of chattel financing, etc. No way I will vote for a candidate who gave us SAFE.

Amen. And I’ll go a step further. Whether you like or don’t like the direction the country is taking, not voting is the same as casting a vote for the other side. One less vote for what you believe in is one more vote for that which you don’t.

Bob, well said. This should go out from all associations 2 weeks, 1 week and the day before elections.

This site is routinely good on news, but the election items were really good. In WI, big political changes with this election. Our industry needs to learn how to work with those more conservatives going to Washington and state houses too.

[...] Congressional Hearing on Federal Role in Housing Finance – Report And Analysis [...]

[...] An MHMSM.com INdustry in Focus Exclusive Interview Report with industry consultant and once interim-president of MHI, DICK ERNST, Part Two  [...]

Doug, as usual, is right. We do have to support these shows or they will cease to exist, leading to further diminution of an already too-small industry.nMarty Lavin

What do you think of the Massachusetts MH Association connecting to this page from our Webpage http://www.MassMHA.org?nWe are doing a front page redo the first of the year and am interested in placing more industry news. nPlease advise.nThanks!nMary McBradynExecutive Director MMHAnExecDirector@MassMHA.org

Nice littel letter Mr. Miller but come on using phrases like “just as good as stick built” is’nt helping our image or educating anyone. We are and deserve better represention of our industry! Next time be more agressive in your atempt at image building.

Gene, maybe you can share how to do instead of how not to do? As to your point, I respectfully disagree. If we had 50,000,000 more adult Americans thinking we are just as good as stick built, we would have more people buying manufactured homes. Then, you and 500,000 others in our industry would be doing much better.nnWhat I would love to see articles like Eric’s do is inspire others in our Industry to engage their local media. Thank them fir good coverage. Write or call an editor every time they misuse a term or have a negatively slanted story Do it tactfully and respectfully, but state the facts well. Invite them to a nice HUD Code home retail center, development or MHC. Let them see our product and hear our Industry’s story. That takes some time and effort, but if you and I don’t start doing it, who will?nnIt is past time to start doing positive things to make our Industry as respected as it should be, and to set it on a path towards growth.

Tony, my point being we need to take a aggresive approuch to damage control. Perhaps if you had read recent articles by the Des Moines register on mobile home parks . You would see the need for stronger defence. The time for one on one comes latter. After all we are innovaters in building not followers. This is a position that has to be driven home in all contact with the media!

It is about time business was excluded from regulating itself. If this theme was followed before we could have; avoided the BP mess in the gulf, still had electric bus systems in major cities, led the world in 21st century energy technologies, AND avoided the ugly economic climate we now suffer from because the major banking interests and Wall Street got to write their own regulations.nnIf you want our business to recover start putting the customer first. Once you do profits will follow.

Dan, I agree that customers need to be properly cared for – never over promise, never under deliver. Treat others how you want to be treated.nnRegarding the MHCC, I am not sure if there is much evidence that customers are getting a raw deal. Most retailers today or MHC operators are smart enough to know you have to take care of the customer. We certainly believe that here. The reports I’ve heard are that retail customer complaints are down, not up.

William Freeborne was a research engineer (one principal topic was manufactured housing) with HUD from 1975 to 2003 (27 years) and then a consultant living in the DC area. Not surprising that HUD reappointed him.

[...] Outnumbering Boomers, Gen Y Wants Walkable Neighborhoods January 17th, 2011 Eric Miller Leave a comment Go to comments Those attending last week’s International Building Show (IBS) in Orlando have seen the future and it’s not in the suburbs. The Wall Street Journal published a piece this week on one focus of the event hosted by the National Association of Homebuilders: the urban preferences of generation Y. There’s a lot of talk about retiring baby boomers and their impact on the economy these days, but coming down the road is Generation Y, a larger group with its own preferences. And those preferences are decidedly urban. This group has no interest in formal living rooms and they want to walk. As the article points out, an estimated 80 million people comprise the category known as “Gen Y,” while the boomers boast 76 million. One problem: boomers can’t afford downtown living, so they look to walkable suburbs. For information on how manufactured housing has been used in urban areas, see this MHMSM.com InFocus Feature. [...]

It’s a nice presentation. Thanks for the reviews.

[...] for which Erin Patla does the daily podcast, and Eric Miller, Catherine Frenzel and more recently Matthew Silver provide and post every business [...]

[...] for the Tulsa Show run through May 1st.  Click on the link above for information on that show and click here for their latest updates on the fine food, folks, fun and fabulous networking, business building, [...]

[...] homes are on the planning board. MHMSM.com first reported on this trend last year in  ‘Some Say the Future for Manufactured Homes Is Downtown‘ by Eric [...]

[...] another caller told me last week, in Europe or Japan than in the U.S. Our recent article on factory built homes in Canada should make us realize that we have work to do here in the U.S. that will enhance our acceptance in [...]

This industry or any other building industry must fight fire sprinklers with everything we have. That type of requirement will put a nail in our coffin.n

[...] view with MHMSM.com that community ownership is one of the best investments to be made today.   Click here to read Part One of the George F. Allen interview today in the Industry Voices Guest Blog on [...]

[...] FYI, for those aficionados of the MH land lease community business, you will want to see the exclusive interview our Industry in Focus reporter Matthew Silver did with George Allen that is live on our Industry Voices Guest Blog: George Allen Sounds Off in Exclusive Interview on Key MHC and Industry Issues. [...]

Is it any wonder why George Allen is revered in this industry? His depth of knowledge and keen insights are always spot-on. Thanks for this interview I look forward to reading more.

Best article in a long time. Congrats.

[...] Masthead post by Publisher L.A. ‘Tony’ Kovach, The Cutting Edge by IT/WebTech Bob Stovall and Industry Voices Guest Blog by Lifestylist Suzanne Felber – The Home Idea [...]

[...] Click here to read Part III [...]

As owner of Youngdahl Homes and someone who grew up in the mobile home…manufactured home…modular home industry I’m excited about the future. With all down cycles and shakeups newer, better and more creative products & services will arise. The profits at the top of the bubble were great, but the challenges we face now will make us survivors that much stronger, more prepared to better help our clients and smarter at doing all the right things.nnThe engineered housing industry will only grow and improve because our quality & efficiencies cannot and will not be ignored. The stereotypical metal on metal mobile home will be equated with great grandma & nostalgia rather than present day reality. The future of factory built housing is at the intersection of efficiency, quality and creativity.nnHybrid Core Homes is poised to be a leader in the housing industry and I applaud their creativity. At the age of 39 Iu2019m looking forward to my next 30 years and the exciting times ahead.nnDustin YoungdahlnYoungdahl Homesn916-275-8168ndustinyoungdahl@gmail.comn

Retailers need adapt or face the plight of any business not keeping up with the times. Being that so many retailers are entrenched in the methods of the past, this gives greater opportunity to those that embrace change as an opportunity.nnFor instance, how many Retailer still expect walk in traffic as their main means of sales? How many do not have viable websites that list their current listings? How many understand that SEO is just as important as having a website (if you don’t come up on the 1st page of Search Results, you virtually don’t exist).nnHow much of a Retailers operating budget is slated for their online marketing?nnThe internet is a daunting series of technical tasks for many Retailers. One thing Retailers can do to modernize and compete are subscribe to the Retailer Toolkit (RTK).nhttp://RetailerToolkit.comnnThe benefits of the RTK are listings are posted without the need of a webmaster. nThe RTK resizes photos and creates slideshows.nAnyone of the office sales force can update listings and deploy marketing methods (adding Sold signs or just listed to encourage “buy before their all gone” mentality).nand many other basic features that can be managed by office staff rather than hiring webmasters. Check the link above for more details.nnLastly, I don’t think Retailers are destine to the path of the dinosaur, they just need understand that they need complete on the current playing field.nnRegards, nnnSteve GuluknSGDesignnn

Thank you Dustin for the accolades. Understanding where the housing market is going and in what way will the factory-built segment participate in its future is the first step. As Doug Gorman so aptly stated in a separate article, how many buggy whip factories are in business today? Traditional home builders accounted for over 497,000 (87.65%) of new homes in 2010. Manufactured homes accounted for 50,046 (9.85%) and Modular homes were 12,709 (2.5%). If factories were building product that traditional homebuilders would use and the public accepts, I firmly believe that a tipping point will be achieved that will benefit the entire factory built housing industry, including manufactured home dealers. We have that vision and the experience to execute it with the right partners too. Thanks for your input.

Amen, Steve.nnNot only do the factories need to keep up with the latest technologies, everyone in the sales chain needs to also. Retailers and communities that refuse to communicate with their customers using the new tools will fall by the wayside.nnThose who believe that using the new technologies is only for the very young are not only missing the opportunity to acclimate a new generation (one that doesn’t yet subscribe to past stereotypes) to the benefits of factory-built housing, they are also thumbing their noses at another huge potential market of retiring baby boomers. People 55 and over now constitute the biggest growth segment for Facebook.nnThose who haven’t seen your “Dominate Your Local Market” presentation yet need to know we’ll be presenting it at Congress in Las Vegas and at the Great Southwest Home Show in Tulsa in just a few weeks.nnNow is the time to have your online marketing strategy thoroughly reviewed with an eye to making more efficient and more cost-effective. That is just one of the things we do here at MHMSM.com to help ensure a health future for the manufactured housing industry.nnPlease see:nhttp://www.mhmsm.com/website-reviews

You know Bob, it goes farther than just technologies. Future homeowners want a sustainable home that is beautiful, affordable, and reflects their successes in life. It is still one of the most important decisions of their life. Social acceptance is still very important. When the industry is building the same floor plans and elevations that were prevalent 20 years ago, what do you expect? I KNOW that there are professionals that will propel us to the next paradigm that is severely overdue. Roberto Kritzer of Champion Homebuilders is an example of the elite, and I know there are many more that, if allowed to address the true desires of the homeowner with value engineering as a compliment instead of the dominant element in home designs, factory built home technology will get the attention and business it deserves. It’s time to think outside of the BOX.nnnnnnnnnnnnnnnnnnnnnnnnn

I agree 100%, Otis. But once the items you mention are in place, it comes down to being where your potential homebuyers are and, more and more, that means having – and using – a well thought out online marketing program.

The well thought out marketing plan and the product that backs up that plan is what is needed. The market has a very entrenched negative stereotype that will take some serious work to over come.nnMarketing is perspective. The current perspective obviously needs to be changed. On Retailer lot homes should be displayed in a manner so they mimic their site built competition (raised parameter or sunken base area would be ideal). Retailer websites should reflect the same commitment and professionalism / investment stick-built tract homes produce.nnThe golden ticket may be a new market wide re-branding. A new product title. A different buzz word. For instance, ” cloud computing “… which is an enigmatic word that in reality is a simple re-branding of “shared resources”. It’s fresh, it sounds new but is simply a distributed network method that has been around for a years. nnMy business is Design and Marketing online so forgive my lack of understanding in some of these areas related to manufactured homes, but was not “Modular” the key that was supposed to bridge manufactured homes and foundation based stick built homes. Again, from my consumer perspective, we have considered dropping a manufactured home on a lot in an ideal location as a vacation home. But what concerns us as an investment is the stigma and expected lower returns when re-sold. But if that home transformed into a regular stick built home as soon as it was anchored to a proper foundation, we could appreciate the best of both worlds. The efficiency of a home built on a production line, the low cost of initial purchase and then the relative appreciation based on true product quality and location. That, is the bridge that needs to be spanned to really help this industry.nnThe day we can drive through a neighborhood and not be able to recognize a manufactured home from a stick built home, and at selling time, two homes side by side, one manufactured and one built on site, sell for their market value based on location and quality alone, is when the stigma of trailer homes will be overcome.nnRegards, nnnSteve Guluknhttp://SGDesign.comn(949) 661-9333

Steve,nJust curious, what experience do you have marketing HUD Code MH product? How long a history associated with HUD Code marketing and sales?nnInsights (from inside, or outside) and ideas about the industry do deserve consideration. What is really compelling is when a success story is available. You would be pleased to know that Bob has those success stories to share.

Otis,nVery well written. I disagree with your analysis of the problem. The products in many markets are well designed and very suitable for conventional home buyers. The problem lies with the disconnect between the manufactered home and delivery to the site, available sites, financing etc. There may or may not be a demise of retailers but it won’t be because of lack of innovation.nHarry Karsten

Hi Harry,nI appreciate a person of your stature weighing in on this. There is no disagreement that the delivery system for manufactured homes is broken too. Clarifying my earlier opinion, some manufacturers have made some inroads, but everything seems to be prioritized based on price. I am the first one to admit that there are some exceptions. People that make business decisions based on reports like the one by IBIS are looking at what IBIS perceives the majority of manufacturers build and dealers offer nationally. I am quoting the report that states the lack of product change. I would like to affirm your acumen for creating some beautiful designs. My challenge is, if we honestly feel that our innovations are sufficient, then what must the dealer network do to stay alive? Doing the same thing they have always done is not working. I believe they should expand their factory-built product offerings beyond manufactured homes to capture more than just 10% of the single family housing market. Make good use of the experienced professionals that exist in our Dealer network. This will keep the dealer in business as well as the manufacturer.nRespectfully,nOtis

This issue is another version of the blind men and the elephant. Based on what we do, we see different parts of the elephant. That retailers are dying out should be of no surprise to anyone as it has been happening for years.nnI would disagree that the manufacturers are solely responsible, especially based on their build quality. Manufacturers (in general) can turn out products superior to stick built today. They turn out what their market (retailers) thinks they need. They are, market driven, and they build what the retailers will buy, because they are not able to operate a push – pull marketing operation. nnWhere they could be faulted is in their slowness to react to the opportunities that communities provide and in their lack of effective use of their resources to help community organizations build effective marketing and sales operations. Like retailers and community operators, they have also been very slow to step up to the plate and provide captive floor plan organizations, which most of them could do with less trouble than retailers and community owners are having in setting up their own finance organizations. Both of these things would be in their best interests so I am always puzzled at the lack of effort.nnRetailers, for the most part, are still stuck in the 1990s, and their unwillingness to change is the reason for their decline. While financing is a problem, it is a problem they could solve if they would invest some money and a fair amount of effort in learning the things they need to know to solve the finance problem permanently. They also need desperately need to learn real marketing, which would, in turn lead them to better advertising. While the internet does provide real opportunity, most of them are doing exactly the wrong things and attracting people who will buy, but can’t pay for a home, while turning off the harder to sell, but more likely customers. In my opinion, independent retailers should be focused on modular homes, not HUD Code, unless they have a good community market to sell into. nnToo many communities are being operated by number crunchers today, and they are slowly destroying their asset base by failing to recognize a community should be a place people want to live in, rather than a place they have no choice but to live in. Still communities are the great hope of a HUD Code recovery. Community living is a fantastic choice for an aging population, if the community is not busy turning a meadow into a ghetto. There is terrific opportunity for 3.5 to 5 star communities either for existing communities or development of new communities to blow the roof off all the HUD Code sales numbers in the next 10 years, but it will not be done with repos and FEMA homes.nnOutside lenders are likely not going to change very much unless a few just give up the ghost, or MHI doesn’t get changes in the Dodd-Frank Act, which would pretty much sink most of the chattel financing by anyone. Are they financing everything that deserves to be financed? No, but that is what captive finance can solve if people are willing to work at it. Captive finance should be financing 80% of new homes sold. If they were, there would be a lot more new homes manufactured and sold, and we could begin to focus on the image campaigns that many think are necessary.nnAs far as image building, the best ideas I’ve heard were in an off calendar meeting in Las Vegas last year by Ed Hicks. Given a limited attendance, nothing has happened except Ed’s continued passion for a great idea.nnAre parts of our industry dying? Absolutely. Do I have hope for the future? Absolutely. The survivors that are left will be the very hard workers who possess both the tenacity and brains to work with others like them to rebuild a great industry once those who are just taking up space and complaining are out of the way.n

Tony. I have at least 10 years working with Retailers and Manufacturers in this market. Additionally, I have a number of success stories. Do you need some help that I can assist you with?

[...] documents that do represent MHARR’s official position, which were previously published on MHMSM.com in August and October 2010. These MHARR Viewpoint articles called for ‘the post-production [...]

I agree with everything Doug has to say. Being a youngster at only 25 years in the industry I have seen the last 12 years as a struggle. One thing Doug did not specifically mention, but does make a difference is the fact that home buyers 4-8 years ago could buy a site built home without qualifications. No down payment, low credit scores, no income. That took traditional HUD code buyers out of the market. With those loan programs no longer available we are beginning to see traditional buyers re-enter the market. With further tightening of mortgage markets as Doug stated I beleive we are looking at better times coming our way. It is just taking a little time for buyers to relize the easy financing of the past is history.

I’ve been in the K.C. market for along time. And have been reluctant to express any comments on this report. Now here’s the but, I’m afraid that at least in this market that this report is already reality not a projection.

[...] – one of many ‘unintended consequences’ of what Doug Gorman reminded us in a recent Industry Voices blog post when he said the most feared words are, ‘I’m from the government and [...]

[...] – one of many ‘unintended consequences’ of what Doug Gorman reminded us in a recent Industry Voices blog post when he said the most feared words are, ‘I’m from the government and [...]

Did the report also explain total new home sales by site built at one time was near 2 million a year and now estimated at 250,000. The 4 th. and most imortant point, in my opinion, that I would recommend Mr. Bradley to analyze is the imbalance in quasi-public corp. Freddie and Fannie, that are now government agencies, along with U. S. D. A. Rural Development, FHA, Ginny, VA, FCS (Farm Credit Services), that do not and have not provided loans for the resale market destroying the value of the homes of low income Americans. Likewise, it is nearly impossible from any of these agencies to get a loan on a new sectional on a permanent foundation with land and improvements. Unlike site built homes HUD code homes through banks demand higher jpercentage down payments with short term variable rate balloon note. We need to quit arguing among ourselves, quit pointing fingers at others, point the finger at our kown chest, and ask ourselves “What have (I)we in this industry done to ensure a level playing field for initial purchase of new and for purchase of resale HUD code homes. Unless (I)we take care of our customers and become politically active, stepping on toes if need be as years of be mild mannered and obedient don’t seem to work, we may survive but be the starving dog looking for a hand out.

Mr. Miller did a great job of covering this subject. Great detail and insight!nnMark Dillard,nSC

I am normally trying to find absolutely love your content. This article a great deal. n

[...] you missed it, please take a look at Manufactured Homes Could Be Part of Post-Tornado Solution in Georgia in the Daily Business News item and the longer Manufactured Homes Could Be Part of Post-Tornado [...]

[...] Manufactured Homes Could Be Part of Post-Tornado Solution in Georgia, [...]

[...] and Sherry Norris (AMHA) Reports on Alabama’s Tornado Recovery Efforts. [...]

Marty makes some excellent points, but one I don’t think he devoted enough attention to is the repo costs in land-home deals.u00a0 Prior to the late 80′s our industry did pretty well.u00a0 Practically all sales, and hence all loans, were to residents of MHPs/LLCs.u00a0 LLCs were full.u00a0 Street dealers rented lots as soon as they became vacant so they had a place to put the next MH they sold.u00a0 When buyers defaulted, lenders efficiently repossessed the homes and resold them.u00a0 MHs were secured when they were vacated.u00a0 They didn’t have to be moved. They could be rehabbed efficiently. Repo rates might have been high but repo costs were low, predictable, and manageable.nnThen came the land-home deals.u00a0 All of a sudden a MH buyer could be (almost) like a site-built buyer – his own 1/4 acre of paradise.u00a0 No one cared if that half acre happened to be at the end of a gravel road in the middle of nowhere or across from the county dump or next to Joe’s Salvage Yard.u00a0 MHs were tied to LAND – physically and contractually!u00a0 Buyers loved the idea.u00a0 Dealers loved it even more.u00a0 And lenders were beside themselves with glee.u00a0 Mardi Gras moved to Wall Street – let the good times roll!nnThen came the collection problems and the repos.u00a0 Mr. MH buyer changed jobs and/or phone numbers and there was no park manager to leave a note on his door saying his lender called to say he’s behind on his payments.u00a0 Collections agents drove 50-75 miles, often in circles, trying to find their collateral on one loan.u00a0 If they were lucky they found the home – but then no one came to the door.nnBy the time the lender repoed the MH everything but the kitchen sink was missing.u00a0 Actually the kitchen sink was also usually missing.u00a0 The lender contracted with street dealers to move the vandalized MH to the dealer’s lot, rehab (correction:rebuild) it, resell it (competing with new MHs on the lot), move it (again), and set it up – on another 1/4 of paradise.u00a0 Wall Street “suits” might have been dumb enough to buy hundreds of millions of dollars of those loan packages but I don’t believe for one minute that lenders didn’t see the writing on the wall.nnWhere’s the industry headed?u00a0 Right where financing leads us.u00a0 And I think that will involve a contrarian lender dusting off a business model that worked pretty well 30 years ago: financing MHs in LLCs.u00a0 Admittedly it won’t be at the production/sales volume witnessed during our go-go years – but it’ll be enough to keep some lenders in business.u00a0u00a0u00a0 Site-built lenders are making money today selling 5%, 30-year loans on the secondary market.u00a0 Add some nuances to in-community financing of CSH homes like community owner recourse so everyone has skin in the game.u00a0 Also add 300-400 basis points and reserve accounts to cover repo costs and tell me it won’t work – and I’ll refer you to thousands of community owners who will prove you wrong.nnSpencer RoanenAtlanta, Ga.nNot a consultant, a conventional lender, or an attorney – just a community owner.

Let’s begin where Spencer Roane left off. Huh? If you haven’t read his immediate response to Marty Lavin’su00a0commentary, do so beforeu00a0continiuing here. Thanks.nn”…thousands of LLCommunity owners who will prove you wrong (Marty).” is what Spencer penned. And I agree. Not about the majority (i.e. $ history lesson) of Mary’s musings but the latter part. Marty gave short drift to what is generally and successfully occurring in landlease (nee manufactured home) communities throughout the U.S. today. What?nnSelf – financing of on – site sale of new and resale homes, as well as selective renting of homes in supportive local housing markets! Oh, and did I mention a hybrid form of lease option? Marty onlyu00a0makes passing mention of these practices, probably because he’s no longer a LLCommunity owner (that I’m aware of), so a bit out of touch. But here’s how it’s working among the many businessmen and women I know who’ll ‘do what it takes’ to get the ‘rent meter running’ on the ground under manufactured homes, modular homes, ‘park model’ RVs, sited thereon – new and pending financial regulations notwithstanding.u00a0nnNo, as one travels the U.S. today, it’s common parlance and practice to talk of, and implement those methodologies, just like ‘resident relations’, property valuation, and management certification have been the popular topics in past days. Self – finance is commonly either ‘buy here – pay here’, which Marty indeed mentioned, or ‘captive finance”, which he didn’t (that I recall), and now most recently, hybrid lease option. And of course, if you were present at the MHCongress in Las Vegas last month (where Marty was not), you know ‘rentals’ have been discovered by some of the new management execs ito our asset class. Some of us cut our teeth on ‘rental units in mobile home parks’ back in the late 1970s, requiring our tenants to pay their rent weekly, to keepu00a0collections under control!nnPoint to all this? Sure, most of what Marty pens is true; same with Spencer’s observations. But hey, if you’re an entrepreneurial businessman or woman, ‘business is still good’ for those of us in the LLCommunity business under these key conditions: Do not let greed influence your decisions (e.g. rent increases), insofar as possible be in supportive local housing markets, and insist on trained, capable, experienced, motivated on -site staff, both managers and sales professionals. To which I’d add, ‘and stay informed by reading news and guidance penned by known industry leaders and successful consultantsu00a0writing here at MHMSM.com and my weekly blogu00a0community-investor.com.nnGeorge Allen, Realtor, CPM Emeritus, MHMnConsultant to the Factory – built Housing Industry &nthe Landlease Community Real Estate Asset Classngfa7156@aol.com or MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764

This is an important Industry discussion, and I only wish to add a brief quote to facilitate the dialogue:nn”What is wrong is that we do not ask what is right.” -nnG. K. Chesterton

I would add this. I may be in the minority but I do not believe our industry in tanking and becoming obsolete. But I don’t think we will ever see a 500,000 unitu00a0year again either. nHere’s what I do think we must start thinking about, a new market and a newu00a0way to approach them. nEx-u00a0AARP reports the average age of people needing assisted type care is 85. They retire at 65. That’s 20 years ofu00a0somewhere they will need to live. nHarvard University saidu00a0a report in 2003 55 percent of seniors had incomes of less than $15,000 and 23% had annual incomes of above $25,000. nA president of a firm that specializes in affordable elderly housing will dominate the market in the future and his newest project is small two bedroomu00a0units that rent for $475-$775 and there is 350 person waiting list. nMany people are soured on buying homes as what they thought was a good investment has dug them into a hole they can’t get out of, a home that is not worth what is owed on it. nPeople are living longer lives, but their retirement investements, including their homes have took a huge hit. They must now choose to continue working or downsize and live on less. nBeginning Jan. 1, 2011, every single day more than 10,000 Baby Boomers will turn age 65. This will happen every single day for the next 19 years. nAnother AARP survey of Boomers reports that 40 percent of them plan to work “until they drop”. nMy point is that park owners and mfgs. need to clean their glasses. Our conversation should not be about a dying industry, but rather an industry that needs to adjust our sites for a market that needs our housing, they may just not know it yet. nChattel Lending as we knew it may not return, but where there is a need, someone will find a way to make it happen. nLike the movie, if you built it they will come, believe me, with 10,000 a day wanting to retire, they will come. And we better be ready for them with a product, a community and a new attitude or our customer base. nu00a0

If LLCs are going to account for significant new MH sales in the future (and I think they will) AND if LLCs are being positioned to address the needs of affordable house (and I think they should), “someone” might give some thought to the number of LLCs that will “go away” in the next 5-10 years.u00a0 Many, built on the outskirts of metro areas 20-30 years ago and now surrounded by high-priced development, are worth more for their land value than their capitalized NOI.u00a0 Admittedly land values have dropped over the past 3 years, but they will be back.u00a0 In Ga. our powers-that-be won’t rezone land for LLC development within 50 miles of any significant population center.nnSpencer RoanenAtlanta, Ga.u00a0

Spencer,nnWe’ve had a lot of folks write and comment that they would be willing to help make the changes that are necessary to ensure the future success of the industry, but need some guidance as to where to put their energy.nnYou’re comment thatu00a0 “In Ga. our powers-that-be won’t rezone land for LLC development within 50 miles of any significant population center” highlights just one area that needs to be addressed by LLC owners if this segment of the market is going to grow in the event that the current vacant homesite continues shrinking.nnDespite current vacancy rates in many established communities, now is the time to be thinking of future expansion of available homesites in areas in which the vacancy rate is low.

Bob,nnI believe that our industry is like any other in that positive changes occur when those who buy our products are impressed with the product – and that message gets out to other prospective buyers.u00a0 Our “product” is a lot more than a house.u00a0 It’s also quality, functionality, appearance, affordability, service, warranty, and longevity.u00a0 The communities we offer must be safe, quiet, attractive, pleasant places to live and to raise families.u00a0 I think all segments of our industry are working together today like never before to provide a great product.u00a0 Those who need help can find it in the form of others in the industry working toward the same goals, national meetings, consultants, informative newsletters and subscription services, and services offered by our state and national associations.nnMany suggest that the biggest challenge we face today is financing.u00a0 Obviously changes need to be made in financing to make it “work” for the lender, the manufacturer, the dealer, and, most importantly, the home buyer.u00a0 I suggest, however, that improving the image of our industry is just about as important as financing, and that the two are very closely tied together – in that improving our image will bring more better-qualified buyers to our sales offices.u00a0 Also, every dealer and community owner now promotes his own product in his own market, effectively recreating the wheel thousands of times over every day.u00a0 No central advertising campaign or program promotes the overall industry, presents the bulk of the message repeated by each individual advertiser, and effectively ties the industry together.u00a0 I can’t name any other product which is successfully sold nationally without such a program.nnWe all know that national advertising doesn’t come cheap.u00a0 That’s one of the reasons I’m excited about the program we’ve been discussing over the past two weeks involving new, in-community CSH homes for FEMA disaster relief.u00a0 As David said, we have an opportunity to be part of the solution, not part of the problem. Our best, most functional, most attractive, and most affordable homes could be showcased helping victims of every type of natural disaster.u00a0 We could help FEMA develop a more efficient, cost effective program, we could help our image as well as FEMA’s, and we could provide the exit strategy for such emergency services that FEMA must have to effectively carry out its mission.u00a0 AND, since disaster relief is a national issue, we could share the costs of promoting this program, FEMA, and our industry on a national basis.nnSo my suggested “guidance” is that we continue to improve the product we offer (recognizing that product has many facets), support our state and national associations, and encourage our national association to develop a national advertising and public relations program.nnSpencer RoanenAtlanta, Ga.n

Spencer, like you we favor an Industry Image/Education/PR campaign.u00a0 In the ideal, it needs to be tied to self-improvement.u00a0 We put coaching and tips in our feature articles by experts, precisely to give Industry pros tools to improve.nnBetter customer service, happier home owners and residents, would be huge for our Industry.u00a0 We have a great home product!u00a0 But we need to make sure people understand our value.u00a0 We are professionals and business owners must give our best to the public. nnThen, we need to have financing that performs, or who will lend?nnTo all,nWe have had a number of comments made privately by phone and via messages.u00a0 These are often quite in agreement with Marty’s points to the following extent.nnMarty says, look at the facts.u00a0 There may be hope, there may be pockets of success.u00a0 But as an industry, we are still sliding down hill after a dozen years.u00a0 nnThat 12+ year slide is the wake up call for us.u00a0 nnThat tells us that we need to look at the underlying causes of the problems that brought us here.u00a0 nnFinancing and image/PR are in that mix of what needs correction.nnThose who know me or our MHMSM.com work know we are solution and goal oriented.u00a0 We believe in this Industry!u00a0 But we also believe we must look the cold, hard facts in the eye and then deal with those real world issues.nnIt strikes me as interesting that the more supportive comments of Marty’s article have been private rather than public.u00a0 nnI think Marty deserves high marks for the guts to stand up with an unpopular message.u00a0 George has an anonymous writer in his monthly Allen Letter.u00a0 We have one here on MHMSM.com too.u00a0 Marty is writing under his own name, and saying look at the long running problems and wake up!nnWhy should it be so scary to state the facts, and ask that we deal with them?nnBottom line, I agree with much of what the comments have had to say that there are those who have success, those who are making money, etc.u00a0 But pockets of success are not an industry turn-around!u00a0 Until those limited success stories become the routine, we have a problem that needs to be dealt with.u00a0 I will blog on this today, along with another item on our Masthead blog.nnu00a0u00a0u00a0u00a0u00a0u00a0u00a0u00a0u00a0u00a0u00a0u00a0u00a0u00a0u00a0u00a0u00a0u00a0u00a0u00a0u00a0u00a0u00a0u00a0 “What is wrong is that we do not ask what is right.” nnu00a0u00a0u00a0u00a0u00a0u00a0u00a0u00a0u00a0u00a0u00a0u00a0u00a0u00a0u00a0u00a0u00a0u00a0u00a0u00a0u00a0u00a0u00a0u00a0u00a0u00a0u00a0u00a0u00a0u00a0u00a0u00a0u00a0u00a0u00a0u00a0u00a0u00a0u00a0u00a0u00a0u00a0u00a0u00a0u00a0 – G. K. Chesterton

u00a0Sure we are in the most difficult times right now and Marty makes some good points, however to paint an entire industry as greedy, unthougtful and uncaring is not what I have seen. There are more good people than the few who have caused the situations we are in now. Been in the industry for almost 30 years (I was very young when I started) and I have seen its ups and downs and right now I feel like we are being attacked from many sides as we struggle to survive. If financing issues and regulations are not enough, we have many other federal, state and local regulations coming at us from every angle. I do not believe that we are on the train to oblivion. There are so many bright intelligent industry leaders out there that will not let that happen. Out of the ashes the Phoenix will rise. We have so much to offer, so many housing opportunities for Americans, not just in LLC’s, in many housing scenarios. We must build back consumer demand and all of the other things will fall into place.nnNancy

[...] Attorney, manufactured home community owner and industry expert Marty Lavin has shared a wake-up call in his Industry Voices guest column post, The Train To Oblivion [...]

u00a0This is probably the finest and most frank commentary I have ever read regarding our industry. u00a0I suppose this would be a good time to remember that a dying industry doesn’t mean we’re dead yet. u00a0(Rampart, start an IV with ringers lactate and transport as soon as possible) u00a0We all need to take a gut check from what this gentleman wrote. u00a0I also love the comment David posted that we need to refocus our markets. u00a0Time to get creative to save ourselves! u00a0It is true- u00a0if you want to stay in this business- u00a0roll up your sleeves, work hard and smart. u00a0If not, bail and don’t look back. u00a0

u00a0Marty Lavin is a great guy and an industry friend. I have disagreed with him about this fundamental fact: if we offer the consumer a value proposition and support it with a sound business plan and adequate capital structure, the Land-Lease Community/ Resident Finance Program can be very viable. To do this the community owner needs to be involved and engaged with their residents and have the infrastructure to make the plan work. He is correct, chattel lending is dead and the business as we knew it is history. However those who adapt and adopt the above will continue to be the best “affordable housing” providers in the US, and will survive and be profitable.nnJim Reitzner, Asset Development Group

[...] to anyone or anything via the internet; however, Marty Lavin’s commentary interested me.  [See The Train To Oblivion, May [...]

To further add to this discussion is an ‘on the record’ view from an MH Lender:nnhttp://www.mhmarketingsalesmanagement.com/blogs/industryvoices/if-you-don%E2%80%99t-go-forward-you%E2%80%99re-not-going-to-go-anywhere/nnYou can read this lender’s Industry Voices article linked above.u00a0 Then post a comment or reply via his email address at the end of his reply to Marty Lavin’s article.

AlnThanks for providing an MH lender’s perspective on this important topic. nnFor those who missed Marty Lavin’s article that sparked Al Cole’s response, please see:nnhttp://www.mhmarketingsalesmanagement.com/blogs/industryvoices/the-train-to-oblivion

Al, you areu00a0obviously knowledgable and have written a laundry list of valid points. I do think perhaps you incorrectly assessed some aspects of Marty’s column. You appear to suggest that Marty lacks awareness of the lender’s risk and/or low margin spread. Having known and worked in the industry with Marty for about 20 years I can assure you Marty has been “one” with the lender through out his career in the industry. I state that in a most positive sense in that Marty has consistently tried to establish awareness in the industry of the tenuousness of financing and the high risks lenders experience. I like to view myself in that same light, although not with the degree of skill and knowledge that Marty brings to the table.u00a0nAs I stated above, you have made many valid points and time and space will only allow me to address a couple of them.u00a0I have had to compete for 40 years against retailers who falsified down payments and as you stated created straw purchases. Sad to say, many of the lenders shared in the complicity as they were well aware of which retailers were the source of their problems and they looked the other way. If as a lender your repo list is disparately dominated by sales from same retailer a clue should be there somewhere. I have personally reported bogus deals numerous times prior to the closing and in every case the lender proceeded with the transaction with no consequences for the corrupt retailer.u00a0In Oklahoma we passed legislation to protect the lenders against park owners who lacked the vision to see the need to protect the interests of those entities who providing lending for our product. Other states should do the same if they have not already done so.nn

[...] Attorney and Industry Expert Marty Lavin has sounded off on what ails MH personal property (chattel) lending with this article entitled The Train to Oblivion. [...]

[...] A response from an MH chattel lender was made with an article entitled If you don’t go forward, you’re not going to go anywhere. [...]

u00a0I think Marty’s passionate thoughts are spot on. The long and the short of it is that the days of sitting and waiting for things to get better or return to ‘normal’ are long passed. We need to stand up and do something or this industry will continue down the spiral. The time for action is now. Need financing? Talk to Ken Richel, Dick Ernst, or Bill Carr…they are doingu00a0wonderful things with captive finance. Need updated or fresh product? Demand your manufacturer to provide it, or find one that will. Need sales training? Talk to Joe Adams. Need internet services and marketing? Talk to me. nnThis industry has some of the brightest minds going…let’s take advantage of that and get things turned around. With a little hard work, we can do it.nnDerrick HacheynManufactured Home Sourcen206-364-4221nn

u00a0I’d also like to commend Tony and his team at http://www.MHMSM.comu00a0for providing such excellent Industry news and articles such as this…we need to be aware of and talking about all of the issues that haunt us, and Tony makes sure we are all at least aware of them, and provides a professional forum for discussion. Hats off to you, Tony. nnI also suggest that you speak with Tony regarding any marketing or sales training needs you might have, when I spoke of the bright minds in this industry, his is one of the brightest.nnSomethingu00a0I’d like to add to my initial comments: if you feel a national image campaign is just the thing we need…don’t wait for it to come to fruition, start at your own business, with your own staff…be the change you want to see in the industry.

Derrick,nThanks for your comments and compliments.u00a0 Let me sincerely return the compliment, your firm and the other players you mentioned are each ways that this Industry can use existing talent and resources to make a turn around a reality.u00a0 Many many not realize the level of commitment that MHSource has made to ‘be the change’ that can help firms improve their business.nnAn industry turn around is done one business, one person, one location at a time.nnWhen enough people/businesses buy into a new mode, a new paradigm, then you have the making of success.nnIt is my understanding that Marty Lavin will provide us with more meat for us all to consider. nnThose who have not yet seen this lender’s comments on Marty’s article, should check out this Industry Voices blog post:nnhttp://www.mhmarketingsalesmanagement.com/blogs/industryvoices/if-you-don%e2%80%99t-go-forward-you%e2%80%99re-not-going-to-go-anywhere/

[...] writing “The Train to Oblivion” for MHMSM.com, I fully expected to hear from its readers. I knew some would take the opportunity to [...]

My hat is off to this man.u00a0 Great response!u00a0 Thanks foru00a0telling it like it is (again).u00a0 It is going to take a Herculean effort to get back on the tracks.u00a0 I’m in!u00a0

As I said on Linkedin, Marty is one of four experts in the chattel finance of manufactured homes I truly respect. First because he has the technical knowledge and expertise to understand the important aspects, second because he has the trained intelligence to properly focus that knowledge and expertise, and third because he has the guts to tell the truth instead of equivocating.nnHe also has the tenacity to take the constant pernicious reputation blows from behind his back, the slights, the condescending attitudes, and the outright lies about him. While he and I may not always agree, he is a man that deserves respect. u00a0

Finally an analysis that I believe provides a realistic appraisal of the current conditions in the MH industry.

Hello Bill ~nnI have looked closely at the imbalance in housing finance and worked diligently to close the gap in our own work.u00a0 I have called the MH market a “parallel market to the residential market where everything is handled differently by different regulations, practices and companies.”u00a0 nnIn my view, on a grand scale, the MH industry struggles with itself whetheru00a0to draw closer to the residential market or to go its own way.u00a0 As a conflicted and disaggregated sector, moving closer to the more regulated residential market is hard to motivate from within.u00a0 A few voices have tried; most frame the ideal as “the good old days.”nnTo your point,u00a0unless the industry shifts to a more residential set of practices, you will never pull down any of the government-backed loans you cite.u00a0u00a0And, over 90% of all residential lending now is government-backed!u00a0 Consider it quid pro quo – security and fair dealing (of the regulated, structural sort) or no deal.u00a0 Pretty simple really.u00a0 nnIn the community segment, the deal on its most basic level isu00a0long-term leases.u00a0 It’s been the same condition for 20 years and still no real takers.u00a0 Randy Rowe speaks of “economic security” as one of his five keys, and he stated at the Allen Roundtable in 9/2010 that it is linked “abesolutely” to home financing.u00a0 nnSo, Bill, long as we might, the question is a business basic:u00a0 Are we listening to our customers and finding solutions to their problems?u00a0 I am someone who has a 360 degree view ofu00a0customers; to your point, what do our government lenders need and how can we meet that need?u00a0 nnThank you for the discussion.u00a0 Paulu00a0

[...] Open Letter to CFED Regarding Dodd-Frank and its Impact on Affordable Manufactured Housing [...]

[...] have had a strong response to Marty Lavin’s recent columns, The Train To Oblivion and Again, Train to Oblivion, redux. Let me share a word of caution tied to a word of [...]

[...] is due to the growing regulatory challenges this industry faces. As Marty Lavin stated in Industry Voices previously  , will rentals save MHC’s?  It may buy time for some operators, but for many it [...]

[...] the time of David Roden’s first report here on May 7 – Manufactured Homes Could Be Part of Post-Tornado Solution in Georgia – our task force has continued to pursue the use of manufactured housing as an option in disaster [...]

[...] Marty Lavin and Al Cole have shared some key points.  Marty is right, we need a change in our business model; the old one is broken.  Al Cole is right.  We have to ‘partner’ with lenders.  We have to team up with our home owners, too. [...]

[...] Lavin and Al Cole have shared some key points.  Marty is right, we need a change in our business model; the old one [...]

[...] are working with government, as Spencer Roane and David Roden are doing with FEMA and their state emergency management organization [...]

[...] have read of late from Marty Lavin, Doug Gorman, industry lender Al Cole and here on this blog about the impact of Dodd-Frank on our [...]

[...] have read of late from Marty Lavin, Doug Gorman, industry lender Al Cole and here on this blog about the impact of Dodd-Frank on our [...]

[...] Open Letter to CFED Regarding Dodd-Frank and its impact on affordable Manufactured Housing [...]

[...] Sherry Norris AMHA Reports on Alabama Tornado Recovery Efforts [...]

[...] Factory Built Homes Built in Alabama for Alabama citizens [...]

[...] If You don’t go forward, You aren’t going Anywhere (by an MH lender on how to enhance MH Chattel Lending) [...]

Folks the truth hurts.u00a0 Knowing Mart as I do I couldn’t agree with him more.u00a0 There are opportunities but we have to know who we are, what we can do based on a realistic basis and go forward accordingly.u00a0 I’ve also penned a few articles about this stuff for the Merch as well.u00a0 My own view is that we are our own worst enemy and quite often shoot ourselves in the foot out of laziness, greed or just not be willing to do the right thing.u00a0 That folks don’t like hearing that…have you ever liked hearing sentiments like that about yourself or your industry?u00a0 Tony. you should get marty to contribute more…nnBoe Davis

[...] Saving Chattel Lending by Marty Lavin [...]

[...] will draw your attention to Marty Lavin’s latest Industry Voices article.   We all want to save chattel lending.  We need to consider how that might be [...]

Why do I not see our industry leaders saying AMEN Marty?

GS,nGood question.nnI hear you loud and clear.u00a0 nnWhere are the Industry Leader’s ready to say AMEN?u00a0 Where are the alternative plans for those who attempt to take exception to Marty’s pithy thoughts?

The proactive approach taken by SC is the mark of an exec who is trying.

[...] exemptions for MH retailers from Consumer Financial Protection Bureau (CFPB) oversight.  Click on Dodd-Frank Act and Manufactured Housing to read the full [...]

[...] PROLOGUE TO SAVING CHATTEL LENDING [...]

[...] Marty Lavin has weighed in on a topic that George Allen, Doug Gorman and others have graced our pages with here at MHMSM.com.  Conspiracy theories and our baker’s dozen year turn down in sales since 1998 seem to go hand in glove.  You will want to set the time aside to really read, not to skim, Marty’s Lavin’s latest thoughts.  See how the MH/Grassy Knoll crowd fits in with how we can make personal property lending – and thus our Industry – better. Conspiracy Theory [...]

[...] Again, Train to Oblivion, redux. [...]

It’s nice to see au00a0positive news article. In the business world we all have a tendancy to dwell on the negative aspects ofu00a0our industry and forget the good ones.

nnGiven the strainednrelationship between MHARR and MHI, itu2019s difficult reading a post like this withoutnwondering whether the motivation is actually to improve the lot of communitynowners (CO) and retailers or to weaken MHI u2013 to the benefit of MHARR.u00a0 Suggesting now that a Washington lobbyist dedicated to the specificninterests of COs (or retailers) could have saved the manufactured housingnindustry from the SAFE or Dodd-Frank Acts seems a lot likenMonday-morning-quarterbacking overkill.u00a0nHowever, to refute that argument would require airing dirty laundry, andndoing so helps no one in this industry – u00a0including MHARR and its members.nnnu00a0nnn

Part of the issue here is the disconnect between FEMA’s responsibility (temporary housing assistance for disaster survivors), HUD’s responsibility (permanent housing support following a disaster), and the need for communities to make wise decisions on how they want to handle housing needs following a disaster. FEMA should definitely respect a community’s choice not to accept manufactured housing units but when it does offer that option it should be made clear that the community needs to look at how those housing needs might be best served with solutions that can be transitioned into a longer-term solution rather than a quick fix. nu00a0nCommunities should be rewarded with additional assitance through HUD so that they can have a chance to take manufactured units and develop sustainable neighborhood units and support services around them rather than an approach that might punish them for only doing the minimum requirements. There also needs to be an incentive for affected homeowners to contribute their FEMA Individual Assistance and insurance funds into the mix in order to get solutions that benefit them and their community. In some cases you may even be able to get a multifamily developer involved so that renters that were affected could also benefit from a collaborative project in their impacted community a year or two after the disaster.nu00a0nSome good examples of what could be done can be gleaned from the experiences in Mississippi communities that embraced the Katrina Cottages offered by MS Emergency Management (with FEMA funding) after Katrina.

Mr Lavin: Your affordability v financeability hit the nail on the head.u00a0 However, the industry needs both.u00a0A smallu00a0LLMHC owner in Northern Michigan.

It’s refreshing to hear and see someone tell it like it is. Plain speaking is easily understood. DR

I quit reading about half way down the page.n65 question marks on one page?

Tony, As you know I have penned siveral similar epistles in recent weeks that remain in my files, unsent.. too chicken to publicly voice my opinion!u00a0 I am in agreement with the MH observations penned here and believe MHARR needs to tone it downu00a0so its voice is more acceptable. (Sometimes the messenger negates the message) and MHI needs to findu00a0a wayu00a0in the flurry of MH business to put forth a plan to moveu00a0the industry forward. u00a0Maybe even embrace the current proposal or at least make it part of the discussion.u00a0 We need to find a way to move from always playing defence to playing offence.u00a0 We need to realize that we produced great numbers of homes in the hay-day years without the help of the Manufactured Homeu00a0Improvement act.u00a0 Is all the discussion over its implementation helping to improve sales?u00a0 Improve customer satisfaction, work to improve the financing climate, and the enormous need for affordable, decent and attractive housing that our industry can provide will move us forward.u00a0 If not us, then who?u00a0n

This diatribe contains some good ideas u2013 especially the nauthoru2019s support of a national media campaign.u00a0 Unfortunately the political nrambling and personal attacks detract from the good that was written.u00a0 Michael/Tony – please tell us a little about Michael Barnabas.u00a0 What segment of our industry are you involved in, how long?Spencer RoaneAtlanta, Ga.

Some good insights. u00a0Some questionable ‘facts.’ u00a0One correction – Congressman Barney Frank is my congressman (not by my choice, mind you – I voted for Bielat) but one thing he has done is stand by the MH Industry and is very involved in it.nI wrote him regarding the harmful affects the Dodd-Frank reform will have on our industry and he wrote a personal note back saying I was correct, and that his staff is working hard to change that portion of the act to allow easier (i.e. less red-tape/cost) lending for loans under $100,000. u00a0I’d love an all out reppeal of the financial reform act keeping the watchdog portion, losing the rest (and Freddie+Fannie)nnAgain, I pretty much can’t stand the guy personally, but he is on our side and has even helped our state association get some inroads with the State AGs office which has seemed to be less-than-receptiveu00a0otherwise.

Of all things, I have been asked if I had any part in penning this material! The answer is absolutely not. I also have been told that Pat Curran has been accused of penning this article. First, it isn’t his writing style, and second he has better sense, and third he has told me he did not have any part in it.nnHaving published a single article by an author who remains unidentified in one of my newsletters once, I understand the need for some writers to remain unidentified especially when they are writing material that might cause them a negative backlash in their own businesses. I even understand a publisher choosing to publish an article they personally might not agree with. All of that said, I do not understand this article itself as it is so poorly written, nor do I understand the personal attacks on individuals.nnIf the basis for attack is that someone chooses not to endorse Tony’s image building campaign, as little as a couple of months ago, I would have fallen into the same category as I was emphatically not enthused about yet another image campaign. (For those new to the industry, there has been a call for a needed image campaign about every four years for the last 40 years.) I changed my mind because Tony kept beating me up until I finally agreed to at least look at it. I was wrong to reject it before seeing it and I said so in a written endorsement.nnPeople’s endorsements are a personal thing. If the cigarette company whose brand I have smoked since high school asked me for an endorsement, they would not get it. It would not be because I am ashamed of smoking, or because I don’t like their product, they just would not get it. The reason why, is mine, but I have that right. For that matter, neither would the brand of whiskey I prefer, but for different reasons.u00a0nnBusinesses often need endorsements. The businesses I’m in benefit from them when people choose to give them. People are shy, for many reasons, to endorse publicly what they might endorse privately. We recently gained a new client because of a private enthusiastic endorsement from another client that was adamant that we could not use his name or his comments when soliciting business. Obviously he likes what we have done for him, but he will not endorse us. Whatever the reasons, they are his, and I respect that no matter how much I would like him to allow us to use his name with clients. Most of our clients have us under an NDA which means we cannot even whisper their name. Whatever their reasons, it is their personal choice and they have that right.nnUnderstanding that need for endorsement, and, being somewhat sheepish about the way I dismissed Tony’s image campaign, caused me to pen exactly what I felt about his image campaign. It is something that can work and work very well with some creative and interesting twists – provided he gets the initial support he needs. That does not mean however that any individual or organization should be tarred and feathered for not supporting it. Any individual and/or organization has the right to pass on endorsements and support without explaining themselves.nnBy the same token, George Allen has the right to handle executives attending his roundtable any way he sees fit. I sometimes comp people attending our two day Captive Finance Workshops, but not very often. I have had state execs pay to attend, and a few attend for free. Since I still must pay for the room, the food, and the instructors for every attendee, every person who gets in for free is real money out of our company pockets. It doesn’t happen often with us, and I suspect it is the same for George. I also doubt it has much to do with promotion. The Allen Roundtable is an icon and seminal event in this industry, and doesn’t need much promotion. Any community owner who is serious should be attending the Roundtable, as should many others in the industry. I know of one manufacturer who gained five new customers in Phoenix last year just by being there, and it certainly did not hurt my companies either.nnI’m very sorry but the above article should have never been published. This venue had risen, or so I thought, above chat room and bulletin board status. It is poorly written, hard to follow, and totally unprofessional. Our industry needs an image campaign, but this is not the way to get one.

nnWikipedia lists a few almost-convincing reasons fornwriting and publishing under a pen name:u00a0nmake authoru2019s name more distinctive, disguise gender, change genre,ndistance author from other works, avoid overexposure, and protect authornfrom retribution.u00a0 It seems a realnstretch of the imagination to suggest that any of those reasons apply to antrade journal blog.u00a0 More likely reasonsnthat come to mind involve questions of credibility, experience, knowledge ofnthe subject matter, and character.u00a0 nnnu00a0nnnI admire much of what Tony and his staff do.u00a0 In my opinion this poorly written diatribenwas an unfortunate lapse of judgment.u00a0 Itnwas made worse published under a pen name.u00a0nAnd it would be much worse if Tony had anything to do with writing it,nas a means of furthering his national media campaign (which is a good idea thatnneeds no underhanded u201cpushu201d) or raising view and click stats.nnnu00a0nnnSpencer Roanennn

I was stunned that such this column was posted given the severity of the personal attack along with the author’s request to be anonymous. Since he/she has hidden behind a nom de plume the readers can not be aware of what level of contribution has been given to the industry by the author. I can say that very few people in our industry can measure up to the contributions and sacrifices made for the industry by the party he/she chose to trash.u00a0nnAn observation that “MHI doesnu2019t seem to do such a hot job” is attributed to me. I don’t recall ever making that assertion. I have said that MHI is constrained by the nature of being the big tent for all industry segments. Attempting to zero in on a problem for a specific industry segment could potentially create conflict if another industry segment was opposed to MHI providing that support. For that reason needed roles exist for organizations such as MHARR. That observation by me was not intended to imply criticism of MHI.u00a0nnMore observations from the unknown author include:nnu00a0 u00a0″Their plan navigates the key political issues that our industry has faced that has kept us from moving ahead.”nnI am not sure what “key political issues are addressed” by the MAP proposal. The key political issue facing our industry is the proposed minimum loan amount of $78,000 imposed by the looming Dodd-Frank Bill. I do not see any way that MAP addresses that key political issue. A nice blanket statement without substance.nnFollowed by this astute assumption:nn”I asked Tony to give me a projection on what he thinks MAP can do.u00a0 His answer?u00a0 First year from the launch date could double shipments without a need for hurricane season (no need for FEMA orders).nThe next year could double it again.u00a0 That would be roughly 92,000 shipments in year 1. Then 184,000 shipments in year two.”nAs I understand that supposition we are to believe that industry sales will magically double every year just by implementing MAP. While no consideration is given to the manufacturing capacity to achieve annual double sales increases, I do not find the unsupported position of doubling sales annually to be u00a0believable at face value.u00a0nThis posting hurts the credibility of Tony’s proposal and Tony would do well to remove it. It is not only mean spirited, to a large degree it is rambling and incoherent. Tony’s disclaimer at the end is not sufficient.u00a0nnnnnnnnnn

Right or wrong, I’ve allowed articles and comments to be posted when the writer ‘hides’ behind a pen name. My reasons for allowing publishing under a pen name are in part spelled out in the Masthead blog. Personally, I publish under my own name.nnI believe that our Industry needs a forum that fosters sincere, intelligent discussion.nnFreedom of the press has value, but it also has a cost. nnI’ve allowed comments – including those that name me personally – to be published. Why? Because we need a robust discussion of Industry issues that matter. nnTony Kovachn

Freedom of the press is not the issue. Allowing a person to be trashed by a coward who hides behind a pen name has nothing to do with freedom of the press. I am not sure where that confusion comes from. I have forwarded many emails from controversial parties to my email group even when at times I did not agree with their positions. But they never trashed an industry member while hiding who they were. I can understand the need for confidentiality for someone assuming sensitive positions on industry matters. The writer could have written the post without personal attacks.u00a0nnThe other problem is that the posting does nothing to foster “sincere, intelligent discussion”. It is a rambling and at times incoherent diatribe. “Intelligent” was certainly not a word that came to mind after reading the post. Neither was “sincere”.

DougnMother Theresa was revered by millions as a saint. She did what I wonder if I would ever have the courage to do, go and serve the poorest of the poor in a land far from her own. She was noble, selfless and courageous, but that did not mean she wasn’t attacked or criticized.nnIt is precisely the withering scrutiny and attacks that occur that keeps some good women and men from running for public office. This is indeed about responsible, free speech on topics of Industry interest.n nEvery birth – or rebirth – has a level of pain. We as an industry will have pain, like it or not. The question is, what will we give birth – or rebirth – to? Or will we rather chose to let more in our Indusrtry just “die?”nnI have had writers who WANTED to write but had – or have – their fears in doing so. It is NOT personally helpful or convenient for me to have had Barnabas’ article.nnBut a principle such as responsible free speech is not a principle at all if we ignore it due to personal inconvenience.nnSo I will allow people to sound off, within the scope we have stated numerous times. I hope that encourages people of good will to have the courage to share their own thoughts, even if it means some level of pain. –> No pain, no gain. <– n

Freedom of the press??u00a0 Gimme a break!u00a0 That seems to be the convenient shield behind which every unscrupulous publisher hides these days.u00a0 In fact, it’s probably at the core of the defense of Murdoch’s folks tapping phone lines across the pond.nnSpencer Roane

Spencer,nnPardon me, sir. But I stand by ourneditorial policy, which you, Ken, George Allen and others havenbenefited from personally.nnnnnI’ve already stated the obvious andntaken responsibility for allowing this article to be published. Why I have done so is a fair topic for discussion.nnnnnThis is not a popularity contest, or an’see who makes the most noise’ contest. The private comments and thenpublic ones are mixed, but the private comments have been quite calm compared to some of these posted. nnI’ve said and will repeat once more, thatnthis didn’t help me personally. nnMy decision to allow it to be publishednwas made after having the author tone it done from how it was originally submitted was because it then met our editorialnstandards.nnnnnWhat should be clear to anyone whoncares to read my statements on MHARR and MHI, or their leaders, is that my personal approach isnvery different. nnBoth privately and publicly, I’ve worked towards andnencouraged the two national associations and their leaders in working together. Wenalso publish each association’s articles and their leader’s OpEds as they provide them u2013nother than perhaps an occasional edit to remove an obvious error thenauthor overlooked.nnnnnSo I will take responsibility fornpublishing this article or any others on MHMSM.com. It will be ournpolicy to allow a variety of view points. That includes giving younthe right to critique me on my own publication’s site, because you havendone so within the same framework as I have allowed Barnabas to donit. nnnnnnI do find it ironic that I’m beingnpersonally criticized for allowing someone else to be criticized, butnlet’s move on from that, shall we?nnnnnAll that said, I return to the reasonnfor allowing it. To encourage an open dialogue on Industry issues! nnHaving restated my thinking, why not focus on issues? And yes, likenit or not, issues include issues of LEADERSHIP among public figures. nThat is free speech. nnAgree or disagree with a person’s thinking. That is a principle for free speech.nnnnnTrue principles should be adhered to be they convenient or inconvenient. nnnnnnEnough said.n

Marty – as usual you are spot on.u00a0 I’ll never support the associations again.u00a0 We don’t belong to any for many of the reasons you sited above.u00a0 I wish it were otherwise but I don’t see how they can change.u00a0 Our experience with the MHI resale task force proved that as an industry we are more interested in blaming somebody for our ills that correcting our faults.u00a0 What a sad circumstance that is because the homes being built are better than ever and we can barely get any sold.u00a0

Doug,u00a0nnThank you for taking the time to meet with your Congressman and discuss the issues our industry is faced with because of the Dodd-Frank legislation. u00a0This is exactly the kind of communication that each of us should strive to have with our Senators and Members of the House of Representatives. u00a0Greater personal contact by each us can truly make a difference for the future of our industry. u00a0There is no better time than now to reach out to each of them and ask them for their support in correcting the unintended effects this legislation is having on the manufactured home industry.u00a0nnThank you again for your continued efforts.nnRick Rand

I’d like to thank Dale for this column.  I have had a number of community owners express similar concerns.  While I’ve invited some to share their thoughts, so far, Dale is the first to say ‘yes’ to writing an article like this to his fellow community owners.

That said, I happen to believe in a solution orientation.  Dale is among those who plans to learn more about the item linked below.

http://www.mhmarketingsalesmanagement.com/blogs/daily-business-news/grass-roots-industry-turn-around-plan-gains-momentum/

The concerns among MHC Owners are real.  Let’s work together to find the answers, to preserve the American Dream of affordable housing.

Tony Kovach

It seems that mobile home community owners has been left out again. They put a lot of time and money into turning around communities that have been run into the ground by mismanagement companies, but their voices are not being considered. What a shame! 

Dale
I appreciate your concern for keeping MHCs in the mix.  They are a critical part of the industry.  As you will learn when you sit in on an upcoming GoToMeeting, MHCs are very much a part of the mix for the MH Alliance/Phoenix Project.

Those MHC owners who have seen the plan already generally tend to favor it.  We are waiting for comments that some owners have promised.

This guest article, like yours posted earlier today, looks at a specific topic. Just because Ms. Tyler has not explicitly mentioned MHCs, doesn’t mean she was ignoring it.  She plans a follow up article, and we will see what she has to say about MHCs in that column.

Speaking for myself, a considerable amount of my work in the past 7+ years has been directly related to MHCs and occupancy turn-arounds.  It was the focus of my presentation at the recent IMHA meeting, held for MHC owners.  So like you, I believe that MHCs are critical to the Industry survival.

Bottom line, don’t jump to conclusions.  We at MHProNews.com believe in the value and importance of saving MHCs, while not ignoring the needs of lenders, retailers, suppliers and others who are all part of the big MH family.

Tony

http://www.factcheck.org/2011/03/congressional-reform-act/

Bravo Lisa Tyler! 

You have touched on the heart of the matter!  If water cooler comments continually undermine homeowners’ ideas and ambitions about their homes and communities, there’s little chance of MH becoming more than a troubled affordable housing niche. 

I see and experience that prejudice in the MHC sector so much so that it is internalized by homeowners themselves, just as you described.  My question has long been, “what’s behind that?” 

I have come to believe that the MHC segment has a basic value proposition problem that is fodor for “you’re not going to buy in there, are you?” attitude. 

Here’s my question for MHC owners: ”Would you buy a home in your community under the basic value proposition that you offer customers?” 

Some upstanding community owners will say, “yes” and I’ll agree with them.  But, for that guy from Texas – and those like him - who joyfully explained to me once that “the profits from closing and changing use of the parks in 3 to 4 years were too good to pass up,” is the answer still “yes”?  Well, not to the homeowners who are there today remodeling kitchens, adding a room, paying down their 12% loan, or buying a home in the community.  They will soon be the water cooler advisors for the next generation of would-be buyers.  And, who can blame them if their advice is, “don’t do it!”

To my mind, it’s the dirty little secrets of the business and lack of quality control that make the idea of an image campaign hard to imagine.  Ultimately customer experience and what customers say and believe matters the most.  Only they can push back the wave of negative perception that faces this housing stock, and MHCs generally.

I look forward to frequent updates on your research, Lisa.  I consider our work with homeowners is all about changing the value proposition in a very deep and dramatic way, and I see it working.  However, it’s against some big forces so I’d love to find ways for value-players to join together to push and pull for better customer experience. 

Paul Bradley, President, ROC USA, LLC   

Paul,
I agree that Lisa Tyler’s observations are important ones.  Your point about would the owner of an MHC property find their own value proposition compelling is also telling.

That said, I think that the point Lisa makes is that this reality won’t change without a planned effort.  The plan must do more than just image, and marketing instructor Ms. Tyler sees that and the value of the MH Alliance method for accomplishing needed changes.  Involving home owners is as important as involving business owners and managers along with existing state associations to make for a three strand cord that is not easily broken.

Tony

This should be done…NOW!!

Mr. Moore as I came into the business 20 years ago, I have not dealt with recourse lending programs. Nowadays, my focus is on my MHP operation in which I “carry the paper” to provide customers purchase money.

I would imagine many other readers of this site are in the same boat as I am.

I would greatly appreciate an outline of a recourse lending plan that has a high probability of success.

Tony,The recourse arrangement was basically like non-recourse, except that the retailer guaranteed the paper and was paid a portion of the interest rate spread for the endorsement.  It was a very profitable arrangement.The bank originated the paper via the retailer.  If a loan went past the negotiated past-due days, the retailer was expected to then repurchase the contract and do what he wanted with the collateral.  Under the proper business model, the retailer would proceed to repossess it, recondition the unit and re-sell it.  The % of interest (endorsement fee) was placed in a reserve account for losses and was paid out to you on a negotiated basis.  ”In park” sales would not be nearly as difficult as a street dealer selling all over the place with any repo problems associated with recovering the collateral   You have better control “in-park.”That was in the day prior to the NMLS and the new regulatory rules of Dodd-Frank.  Many lenders have simply stopped originating MH paper due to the level of complexity of the rules (and associated fines/penalties for any errors).   IF a retailer has a bank still amenable to originating MH paper under a recourse agreement, the retailer would have to be licensed as a NMLO for each state in which loans would be originated to receive rate compensation in today¹s world.  (Any retailer/park owner originating paper now has to get licensed through that system - to do it legally, that is.)There is another method of handling this type of paper: use it as collateral and borrow against it.I went out to Texas and consulted with Gary Adamek a few years ago.  It took 2 or 3 days of consulting work with Gary to turn him around.  He is doing great.  You can ask Bill Carr about that.  I’m very proud of that event.If you have a good relationship with a local bank, I could structure a deal your bank possibly would finance that would make you money.I charge $1,500 per day plus expenses to come to your place, examine the current system, examine the paper you currently have, look at your financials, and tell you what the bank will expect.  After we have discussed all this and I know your expectations, I can design a plan tailored to the specific needs.  Call me if you want to discuss this further.  My cell # is 901-490-2075.  Dick

Generally I don’t learn post on blogs, but I would like to say that this write-up very compelled me to check out and do it ! Your writing style has been surprised   me. Thanks, very nice post.

I would like to say that this blog really convinced me, you give me best information! Thanks, very good post. 

Housing industries is the best to grow well in market of the world. Real estate maid it excellence and the best. Information make it easier to invest proper and attractive.

Lets also start a campaign to inform TV newscasters reporting on impending high wind events that dangers of remaining in a “mobile or manufacruted home” without seeking adequate shelter depends on when the home was built and the standards to which it was installed. To my knowledge, there has never been an independent reliable study which shows that a HUD Code Home built in the past 10 years, properly setup on a foundtion or tied down to strict state standards is any more likely to fail to protect it’s residents any more than a site built home. And, please stop flying the camers over communities after a storm showing all the skirting, sheds, and awnings which have been blown off the homes, making it look like the homes have also destructed. Site built home neighborhoods without these inexpensive manufactured home installed accessories don’t show as dramitically bad, since as more expensive housing, they don’t tend to use these low cost accessory structures. But, all the ground flotsam, isn’t any more an indication of the safety of the residence, than the dramatically spoken ill advised comments by the commentators are an indication of their intelligence.

As above give a nice post. Prefabricated apartment sales to retailers, the absolute area brokers, apartment developer, manufacturer, manufacturers, and a wealth of absolute sale. Most of them will be able to accommodate abutment service, but also has a degree of confidence some of the limitations.

I am the architecture so I like to find out a  different types of construction planning. This post sharing a useful idea for the housing management. I accept some needful suggestion for the Indiana Manufactured House.

Good article.  Also, who do you like for dealer and park insurance in Illinois?  Jack Bachmann, http://www.stoneybrook-home.com

Mr Moore: Some people seem to have short memories. It was the big guys that primarily got us into this miss. Think abuse, Greentree, Conseco, et al, in the MH arena.  Think abuse, Wamu, Country Wide, et al, in the stick built industry [no docs, little docs, no down payment, walk out with a check, etc]. Think the banks [abuse home equity, credit cards, etc.] Obama = more buiness regulation. Romey = more abuse by big business. How do you propse we reach a middle ground? 

the Presidents Family Lineage?  That would be what?  It is a lie to think that a President can control gas prices (Bush couldn’t and said so).  We shot ourselves in the foot in terms of lending.  No one made us.

I can’t tell you how fed up I am about how the govt did this to us or did that to us.

Nice post. The home can be a single unit or a large multi-section units. You must choose from a variety of home style options. Manufacture of more than hundred and fifty families and more than factories located throughout the United States manufacturing company.

Generally when you look ahead for best home loan remortgage prices, you have to comprehend every element very strongly. You can take guidance from your economical consultant about Mortgage Re-finance Rates.

I agree with your comments. I would much rather see the benefit go to the homebuyer rather than a tax credit to the manufacturer. New Mexico has a great program. “The tax credit can be used by the buyer of the Energy Star Home against their state income tax; they can sell the tax credit to a third-party broker so to be able to get an immediate reduction on the cost of the home at closing, or; they can transfer the tax credit back to the manufacturer.  The tax credit is $3 per square foot with the maximum credit being $6,000.” It had a significant impact on our sales of Oak Creek Energy Star HUD Code homes in NM. 

Hi Ronnie I couldn’t agree with you more. The government approach is like trying to push a rope.  It seems the federal government has never understood the proper way to motivate people.  Instead of giving people incentives to buy homes they give builders incentives to build them and then when they don’t sell the factories wont want to build anymore and contractors will get the business and then they are surprised when they get more of a behavior they promote.  Just another short sighted solution to an extensive problem.

I believe that this is indicative of a prejudice on behalf of the federal government against manufactured housing.  Apparently it is the belief of the government that anyone living in manufactured housing is there not by choice and given a choice people would chose and expensive site built over an economical manufactured home any day of the week. The belief that only site built are good enough and everyone should have one is the type of thinking that caused Fannie Mae and Freddie Mac to lend to people that obviously could not afford the notes that they were given, leading to the economic collapse of the real estate market we are just not starting to recover from.  Because of the points Doug Gorman of HomeMart, Tulsa, OK touched on in his comment, how else can you explain that an industry the government should be praising and modeling, it vilifies and hampers every chance it gets. (Yes we have all heard the jokes about trailer parks and tornadoes)  After all if site built was the best way to do it wouldn’t General Motors make an appointment with you to come to your house to build your new car and would contractors use rafters that were manufactured in a plant somewhere else? But Instead of letting economic forces do their work it is inevitably when the government tries their hand at social engineering is when we find ourselves in trouble.  Congress wonders why they have such a low approval rating could it be because they think they know what’s best for people and don’t mind putting it into law.
Blaine Gilless
Lane Thomas Housing
Hammond, La. 70403

Regarding Dodd-Frank, and certainly the administrators of it, the CFPB, I believe it is more “class ignorance” than a deliberate attempt to single out manufactured housing. Frankly, the Washington bureaucracy has trouble understanding that there are housing choices that cost less than $150,000. They live in $500,000 to $1,000,000 homes and know they are on the “low end of the scale” of “people that count”. They are in disbelief when told that people are buying homes with 20% down payments that need to finance the balance of $50,000 and stunned when informed that many people are buying homes with a financeable balance of $10,000. It is just outside their experience and their “reality”. I have repeatedly been asked, ” Do these places have indoor plumbing?”