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Posts Tagged ‘President Obama’

MHARR Presidential Initiative – Status Report

September 28th, 2012 No comments

by Danny D. Ghorbani

As announced last week, MHARR, on September 18, 2012, sent an identical package to both President Obama and Governor Romney.The Association’s communication appealed to them to help revitalize the manufactured housing industry by eliminating discriminatory federal policies and incorporating affordable manufactured housing as a core component of the nation’s housing opportunity and home financing programs, with the objective of challenging the next administration to elevate the status of manufactured housing to that of a co-equal with all other segments of the housing industry.

These communications, which dovetail with ongoing efforts in the U.S. Congress, represent the initial phase of a broader presidential initiative discussed at the MHARR 2012 Spring Meeting.They express in broad terms the prime policy agenda that the Association will pursue to advance the cause of manufactured housing and its consumers in the nation’s capital after the November 2012 election, regardless of which candidate is ultimately elected president.

In order to achieve maximum national exposure for this initiative, MHARR contracted for national distribution of these materials, and the initial response has been quite gratifying.Within the first week after this effort was launched, it had been picked-up by more than 1,000 sources across the United States and was also the subject of several independent news stories.

Furthermore, the success of this effort in generating national interest in the future wellbeing of the manufactured housing industry and its consumers, and the availability of manufactured housing as a resource for affordable home ownership, has been reflected in the number of calls and inquiries that MHARR has received regarding this matter – all of which are being addressed, as appropriate, by MHARR.

With this initiative now successfully launched, the MHARR Board will be in a position to further address the elements of this national policy agenda at its November 2012 meeting, by which time one of these candidates will have been elected the next President of the United States.

This activity also interacts with the launch of a parallel MHARR legal initiative onSeptember 25, 2012,details of which will be provided to you next week.

MHARR Appeals to Obama And Romney For Action

Danny Ghorbani, President, Manufactured Housing Association for Regulatory Reform (MHARR)

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

President Obama’s Regulatory Executive Order Puts HUD Regulators on the Spot

January 20th, 2011 No comments

MHARR LogoAttached for your information and review is a copy of a Executive Order regarding federal regulation just issued by the White House on January 18, 2011. The Order, released in conjunction with a companion Wall Street Journal article by the President on over-regulation, marks a major policy shift by the Administration that has implications for manufactured housing as a federally-regulated industry.

In fact, it appears this Order almost could have been written with the HUD Code manufactured housing industry in mind. Its focus is on promoting the type of fair, reasonable and open regulatory environment that the HUD Code industry needs to thrive while serving consumers of affordable housing. Among other things, it states, as Administration policy, that the federal regulatory system, while protecting health and safety, must also advance “economic growth, innovation, competitiveness and job creation” through an “open exchange of information” that includes “affected stakeholders” – exactly the opposite of what is happening today in the HUD program.

Consequently, after carefully examining the Order overnight, MHARR, on January 19, 2011, acted to press HUD officials to fully comply with this Order as it relates to all aspects of the federal manufactured housing program including, most importantly, its ongoing rapid expansion of in-plant regulation. This expansion, which began innocuously as a program of “voluntary cooperation,” is now being transformed into a full-blown de facto regulation that will needlessly increase regulatory compliance costs passed to consumers by manufacturers and retailers, as the ongoing expansion now appears to target both. Details of the latest phase of this expansion, developed entirely behind closed doors, are emerging piece-by-piece, having been adopted without any official procedures.

All of this is addressed in detail in the attached copy of MHARR’s self-explanatory January 19, 2011 MHARR letter to HUD Assistant Secretary-Federal Housing Commissioner, David Stevens, a copy of which is attached for your information and review. This letter addresses the ways that the President’s January 18, 2011 Order applies to – and must alter – the practices of both the HUD regulatory program and HUD’s consumer financing programs, specifically including the FHA Title I manufactured housing program, which has been subject to severe limitations which thwart competition and market growth.

We urge you to carefully review this package, as it provides details of the latest phase of HUD’s ongoing expansion of regulation – mandatory three-day audits and costly enhanced Subpart I involvement by third-party inspectors – that are on-course to be imposed on manufacturers and retailers, because the industry establishment in Washington, D.C. refused to join forces with MHARR in order to force HUD to comply with the law by going through consensus committee and rulemaking procedures. Now, as shown by the attached letter, the industry has a major task on its hands to try to stop this.

MHARR, therefore, in an effort to curb and reverse the course of this runaway expansion of in-plant regulation, will now include and use the President’s Order and its January 19, 2011 letter to HUD in its overall ongoing activities with the 112th Congress, to demonstrate how HUD is violating the Administration’s own policy.

We will continue to keep you apprised as new developments on these issues unfold.

Danny D. Ghorbani, President
Manufactured Housing Association for Regulatory Reform
1331 Pennsylvania Ave N.W., Suite 508
Washington, D.C. 20004
Phone: 202/783-4087
Fax: 202/783-4075
Email: mharrdg@aol.com