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Posts Tagged ‘retail selling’

A Texan’s MH Industry Call to Action

April 8th, 2015 No comments

As they say on television, “we now interrupt your regularly scheduled program to bring you late breaking news.” In this case we shift from our primary focus on the Texas Legislative Session to news coming out of our nation’s Capital.

The government affairs team and leadership of MHI has informed TMHA that H.R. 650 is expected to come to the House floor next Tuesday, April 14, for a vote. Following my comments is the call to action from MHI’s chairman on this critical piece of legislation.

Let me quickly update everyone on what has recently occurred in D.C. On March 25 H.R. 650 was voted out of the House Financial Services Committee by a vote of 43-15. Notably of the 43 votes in favor of the bill, 10 were from Democrats further demonstrating this bill’s bi-partisan support.

We were thrilled to see Texas Congressman Williams, Marchant and Hinojosa all add their names as co-sponsors to the bill. Additionally, subcommittee chairman Rep. Naugerbuer and chairman Hensarling, both also from Texas, spoke during the committee hearing voicing strong support for H.R. 650.

So far so good, but then late last week an article was published that was clearly intended to cast harmful aspersions on specific companies in our industry. This effort was a joint project of The Seattle Times and the Center for Public Integrity. One could conclude by the timing of this article following the successful passage of H.R. 650 from committee, but before it is brought to the full House floor for a vote is, shall we say, less than coincidental.

Welcome to the NFL.

Like hand-to-hand combat…no one ever said passing federal legislation is easy, nor is it for the faint of heart.

This is why we are passing on Nathan Smith’s/MHI’s call to action between now and next Tuesday. We need to make sure we contact as many of our congressional leaders in the House to voice our support for H.R. 650.

For this legislation to become law it has to pass the House and Senate, and then not be vetoed by the President. Passing the House is a critical leg of this three legged stool we must construct.

What’s at stake in this legislation?

Would you like to once again be able to assist your customers through the buying process?

Do you think it will benefit MH home owners – and thus referrals from those home owners – for them to be able to get access more financing on homes under 20K or 25K?  Then ask for support for this bill.

Would you like to actually tell customers which lenders will even consider their credit application rather than pointing them to a lender list and when they ask for help have to shrug your shoulders and leave your customer adrift to figure it all out on their own?

Would you like to see lenders re-enter the lending space for homes under $25,000?

Would you like to be able to assist customers to navigate the lending application process, especially those customers who may need assistance from a bi-lingual salesperson or retailer?

Would you like to conduct your retail selling operations focused on best serving your customers and not be in constant worry that you or your salesperson might have slipped up ever so slightly and crossed over some unclear line during the course of a conversation that can leave you exposed to liability for years?

I’d ask you to think about these questions when you are deciding if you want to spend your valuable time contacting your congressman and encouraging others you know in the industry to contact theirs.

The clock is ticking.

We need to all come together as a unified and strong industry to voice our support for H.R. 650. Our opposition is fiercely attacking this bill and our industry by working against us in D.C., leveraging media plays, and we anticipate attempting to file damaging amendments on the floor intended to splinter support and neuter the needed changes in the bill.

This is a critical time. Thank you. ##

dj-pendleton-mhpronews-com-executive-director-texas-manufactured-housing-association-DJ Pendleton
Executive Director, TMHA

 

Published with Permission. The message referenced from Nathan Smith is linked here.

 

 

Putting the Qualified Mortgage Dilemma in Perspective

July 19th, 2012 4 comments

Ronnie Richards MHProNewsThe Dodd–Frank Wall Street Reform and Consumer Protection Act was signed into law by President Obama on July 21, 2010. The Act implements financial reform sponsored by the Democratically controlled 111th United States Congress and the Obama administration. Passed as a response to the late-2000s recession, the Act is bringing the most significant changes to financial regulation in the United States since the reform that followed the Great Depression. The biggest threat to the manufactured housing industry and the Texas Manufactured Housing Association is the impact the new more stringent regulations might have on loans under $50,000.

I did some research using sales data available on the Texas Department of Housing and Community Affairs Manufactured Housing Division (TDHCA MH) web site and the Statistical Surveys data my company subscribes to and it confirmed my concerns. According to TDHCA MH data, single section homes comprised 60% of new home retail sales for the five months ending May 31, 2012.

When I ran a retail selling price analysis in Statistical Surveys for the three months ending March 31, 2012, the most recent period available, I found that 92% of all single sections sold at retail had a selling price of $55,000 or less and 7% of multi-sections fell into that bracket. There were 1097 new home single section sales with lender liens titled as personal property (chattel loans) during the first five months of 2012.

Assuming 93% fall below a $55,000 sales price which with a 10% down payment would mean a loan balance of $50,000 or less, 1020 single section homes and 71 multi-section homes would be affected by the new regulations. That is 27% of all new HUD Code sales and 52% of all personal property financed sales.

I don’t need to tell you how that could affect our industry.

Just the manufacturer dues revenue which accounts for approximately 75% of TMHA revenue would decline by 27%. There are sixteen active HUD Code plants in Texas and if you assume a workforce of 150 at each of these plants a reduction in production could result in 648 Texans losing their jobs and that doesn’t even take into consideration the 55 active licensed out of state plants.

Texas currently has 747 active Retailer license holders and 1002 active licensed Retail Sales license holders. Based on a 27% reduction in sales due to the impact of the new regulation, we could see a reduction by 202 retail outlets and 271 retail sales licensees respectively. In total not even counting lenders, contractors, suppliers and so forth we might face a loss of 1120 jobs in our core member group.

The other impact which is difficult to measure is the new regulations could add significant barriers to affordable home ownership with no alternative housing options. There could be a an annual reduction in new HUD Code manufactured housing sales in Texas of 2650 units based on the current run rate if loans of $50,000 and less are highly regulated. Current manufactured home owners wishing to sell their home will find it very difficult to get financing for their buyers under the new regulations.

We can’t let this happen. MHI, TMHA and other interested parties are taking steps to educate those writing the regulations at the federal level about our industry and its unique financing model. The outcome is not guaranteed but at least we are attempting to influence the rule writing and not just sitting on the sidelines.

If you want to learn more about this and a broad range of other industry topics you should consider attending the Annual Convention of the Texas Manufactured Housing Association in Houston August 20th and 21st. You can learn more about all the business building and informational seminars linked at this site. It’s easy to register online at TexasMHA.com or call the TMHA office at 512-459-1221. All are welcome. ##

Ronnie Richards MHProNewsRonnie Richards is the Chairman of the Texas Manufactured Housing Association and Vice President of Marketing for American Homestar Corporation headquartered in League City, Texas.