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Moblehome, not Mobile Home

July 9th, 2014 5 comments

Does it not roll off your lips? Moblehome. It has a certain rhythm and melody to it. You can say it as one syllable, and not sound like an idiot.

Moblehome, as in a noble home, not a mobile home.

At one time HUD code homes were the only manufactured homes. Not any more.

Man-u-fac-tured-hous-ing, does not roll of your lips. In fact, it is quite laborious to say, with six syllables and no rhythm nor melody. It’s antiseptic. Moblehome is poetic.

Mobile Home is 100% all-American.

I know it’s crazy and against the grain, but I was in it long enough to spout off about it.

Mobile Home should not be a four letter word anymore.

I started in the mobile home finance business working for GECC in Dallas, in 1971, directly for Harry Gilmore, who worked for Fred Wiesenberger, who worked for Scott Conroy, my maternal uncle. Sometime prior to that, Uncle Scott had convinced General Electric to create a “Special Products” division of General Electric Credit Corporation, now GE Capital Corporation, for the sole purpose of offering wholesale and retail financing for mobile home retailers on a national basis.

At the time there were few national lenders, all full recourse, and limited to 84 month retail installment contracts.

I was a mobile home account manager handling about 1500 owners. I managed anything and everything to do with the financed home (primarily collections) from point of sale to completion of contract or repossession, by phone or in person at the residence.

Anyone who was in the business in 1971 knows exactly what kinds of mobile homes were offered to the public. It was not pretty, and in some cases, downright scary.

We all see, on a regular basis, unless you live completely in an urban environment, the vestiges and remnants of the sales heydays of the early 70’s.

There are hundreds of thousands of trailer houses and mobile homes across this country, from coast-to-coast and border-to-border, still in use, well after their intended life span, all pre-HUD, half of them currently uninhabitable by today’s standards, a fourth of them uninhabitable upon leaving the factory, and a fourth of them, like Rollohome, built exceeding the HUD code before there was a HUD code.

The HUD code created a new nomenclature, which has been described by Allen Wallis of

the Natural History Magazine as having four phases;

  • from 1928 – 1940 the travel trailer period;
  • from 1941 – 1954, the house trailer period;
  • from 1955 – June 14, 1976, the mobile home period; and
  • from June 15, 1976 to now, manufactured housing.

Since 1976, we, as an industry, without exception, no matter what sector of the industry one is involved with, as a group, were on a single mission; trying to eradicate all previous terms when describing manufactured housing built to HUD code specifications. It is a valiant and endless chore, perpetually trying to reach the general population, and primarily, our regulators and legislators.

Yet here we are, in 2014, and I still hear on local broadcasting; “trailer,” “trailer house” or “house trailer” and “mobile home,” rarely “manufactured home.”

On national broadcasting, one hears mobile home, an occasional trailer house or trailer park, and rarely, manufactured home.

I see National, State, and County elected officials being interviewed, saying trailer house and mobile home, never manufactured home. Sometimes they will call a HUD home a modular.

I cannot count the times an RV has been referred to as a mobile home, whether it’s a trailer or a motorhome. Motorhome, mobilehome, what’s the difference? Ignoramuses! Are the FEMA trailers ever called anything but the FEMA trailers, even though half of them are HUD code homes and not travel trailers. I doubt you will ever hear, “FEMA manufactured homes.”

I am not saying we have failed, but we sure seem to have a long way to go, after already working on it for 40 years. I have called and emailed I don’t know how many TV stations and networks complaining about their cavalier use of “trailer house” for the last 30 years, although I haven’t called lately. I don’t work in the business any longer, but I do follow it and I do try to educate morons from time to time.

The fact is, the general public has not embraced the term manufactured housing and probably never will. HUD Code manufactured homes are called about everything but manufactured homes by the general public and public officials.

Not mobile home, moblehome, or if you’re nutty about spelling, mobilehome, but one word and when we say it, we are not talking about your grand dad’s mobile home, we are talking about a state of the art, preferred single family residence, blah, blah, blah. I’m not saying give totally up on trying to get the general population to say

manufactured housing, but it’s a slow boat to China. I personally like to say moblehome and I make it perfectly clear I am not talking about a trailer, although the steel is always there, so technically, it’s a trailer with a house on it that trails behind a tow vehicle at some point in its life.

At least we are not called come alongs. ##

ken-haynes-jr-new-mexico-manufactured-housing-association-past-president-manufactured-housing-living-news-com75x75-Ken Haynes, Jr. Please see his commentary on the literally historic and very relevant today document attached to Drawn Quarters – Then and Now.

 

 

(Editor's Note: MHProNews strongly believes that accurate terminology matters, so the thoughts and statements made above are solely those of the writer.

Further, there are points in this commentary that are broad statements that could be construed as technically inaccurate, and should not be taken literally, eg; “half of them currently uninhabitable by today’s standards,” should be read as hyperbole to make the author's point, rather than taken as fact.

As on an issue of industry relevance, MHProNews accepts submissions of articles that may represent other viewpoints. Subject line, “Letter to the Editor” or “OpEd for Industry Voices blog” can be sent to latonyk@gmail.com.) 

Finance Expert Dick Ernst of FinmarkUSA: introduction at Tunica Manufactured Housing Show 2014

May 20th, 2014 No comments

Editor's note. This public introduction was videoed during the business building seminars held during the 2014 Tunica Manufactured Housing Show.

Note that the Speakers knew they were being filmed.

Dick-Ernst-Financial-Marketing-Associates-tony-kovach-mhpronews-com1

An exclusive interview with Dick Ernst is planned to be featured in our upcoming June issue. Dick moderated the finance panel at aDick-Ernst-Financial-Marketing-Associates-tony-kovach-mhpronews-com3 packed room of industry professionals at the 2014 Tunica Show. Dick Ernst also moderated MH home lending and commercial panels, in an overflow crowd during the 2014 Louisville Show.

Dick is a key figure in meetings with industry and public officials, including the CFPB, FHFA and more.

Dick-Ernst-Financial-Marketing-Associates-tony-kovach-mhpronews-com2

You'll get exclusive insights into the widely acknowledged top man in the manufactured home finance business, into industrymhpronews-interviews-with- finance issues, how to generate more profits and much more. Watch for it – and the. Watch it – in June!

More video Interviews available today are found at this link below.

http://www.MHProNews.com/home/industry-news/industry-in-focus/7540-global-eyes-on-manufacturedmodular-home-movers-shakers-and-news-makers

Our thanks to Dick Ernst at FinMarkUSA.com for his profit-making and protecting leadership for businesses, associations and others, and my thanks too for his kind words shared in the video above. ##

(Image and video credits, ManufacturedHomes.com in association with MHProNews.com)

Dick Moore’s Industry and Finance Perspective

November 16th, 2011 2 comments

 

Dick Moore's Industry and Finance Perspective
 
Well, it seems that I struck a nerve with our friend up East. He mostly disappeared for a couple of years, quit writing his newsletter, and went dormant. I figured maybe his conscience was bothering him, after the spin he put on our industry.
 
Now I see a new post from our buddy in “Industry Voices,” the guest platform on Tony Kovach’s e-zine MHMSM NewsLine (MHMSM.com = MHProNews.com), wherein he goes on and on about me in a general mis-representation of my writings. I certainly never opinioned that he had powers akin to Superman. He did, however, invent some mystical losses derived by using losses from Brigadier, Conseco, and other lenders who did not know or understand how to buy MH paper. He then reported those loss figures to Fannie Mae & Freddie Mac, keeping them out of the (Manufactured Housing) markets.
 
This lack of competition had a negative impact on the other lenders that were still major players in our industry.
 
He admitted to me in Louisville one year that he was an “attorney” and was being “paid” by Fannie to advise them. He later denied all that, but everyone knows the credibility of lawyers and politicians. After all, who else gets “paid to have an opinion”?
 
My ex-neighbor was a college professor who taught business
administration at Memphis State University. After listening to his
many goofy ideas and theories, I realized the source of the old adage “If you can’t do it, teach it.” If you were a failure in the finance business, then go out and advise others how to do it!
 
The Mortgage Industry produced paper much worse than the MH
industry ever dreamed of, and that was the paper that our friend
advised Fannie to buy (instead of MH paper). Fannie’s losses are the worst losses the United States has ever endured, and it continues still. (How good was that advice?)
 
It is easy to measure or analyze a situation the way you
want it to look – just choose the measuring criteria needed
to give you the end result you want and ignore any thing
that doesn’t.
 
The MH Industry (its survivors) remains the only low-cost housing that is un-subsidized. Just because less qualified people enter the business and lose money from their poor business decisions does not equate to a ‘subsidy.’ Maybe our friend does not know or understand what a subsidy is. He sounds like Obama explaining the debt ceiling and how someone else created it.
 
I’m sure there will be another argumentative letter, but I have work to do and do not have the time to continue with fruitless exercises in writing.
 
********
 
This industry and its recourse lenders fared well and made good money from the 50’s to the 90’s, with no taxpayer subsidies.
 
This industry faces a number of problems, with the main one being lack of financing. The lenders and the learned professors of the industry like to blame the dealer for all the woes. True, we have had some bad apples in our business, just like every other industry. But the level of damage from that kind of dealer falls way short of the debacle we as an industry are paying for now.
 
One major issue our industry faces concerns resale values of our houses, which directly affects the lender’s recovery on defaulted loans. We as dealers have very little influence in that arena.
 
Many MH Communities will not accept houses over 10 years old; lenders will not finance homes over 10 years old. Somehow, when the house hits its 10th birthday, it suddenly is worth ZERO!?!?! And this is the dealer’s fault?!?!
 
When free enterprise existed in this country and banks lent money to their dealers with recourse, our industry performed well! Lenders were selective about who they would take on (based on the dealer’s financial condition and track record in the community), the dealers would take care of their funding pipeline by not sending them dead-beats (since the
dealer would have to repurchase if the loan fell out), and the dealers were paid endorsement fees for this guaranty. The dealers worked to re-sell the bank’s repos with good unpaid balances, and the paper overall performed quite well. It was that performance that led to the influx of the non-recourse lenders that we saw in the 90’s.
 
Long-gone lenders such as Bombardier, Conseco, Greenpoint Credit, BAHS, et al, saw the performance of recourse lenders’ portfolios, due to good resale values on houses sold under recourse agreements, and made the mental jump to they can do that too! Soon tactics such as withholding of proceeds and diverting rate spread and the odd-days’ interest into non-interest bearing reserve accounts became the norm from the lenders, at the expense of their MH dealer network.
 
In their headlong rush for gold, they also opened the funding gates to credit buyers who (like in today’s meltdown) had NO reason in their track records to get approved for loans at low rates and low down payments.
 
So, they kept the endorsement fees, put that rate spread into a reserve account for repossessions, and bought non-recourse.
 
Their inability to manage the repos, refurb and re-sell them (as the recourse lender/dealer relationships had done) created massive losses for them. Again, I fail to understand how this is the dealer’s fault.
 
********
 
President Obama is railing against corporate jets, while flying around on the most expensive jet in the world. The tax deductions on all the corporate jets in the US would not pay for Air Force One. Is this leading by example or “Do as I say, not as I do?”
 
Good leaders lead by example. They don’t accept favors from lobbyists and major contributors to their re-election campaigns, and they don’t spend the taxpayers’ money recklessly.
 
The crash of the housing/mortgage industry was caused by Fannie Mae and Freddie Mac, which is govt. money invested into private enterprise, wherein all the profits go to the cronies of powerful govt. people, but the risks and losses go to the taxpayers. # #
 
post submitted by
R. C. “Dick” Moore