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Posts Tagged ‘retailer’

Award Winning Manufactured Home Retailer on FEMA Takeover, Impact on Independents

September 28th, 2017 No comments

Manufacturers down here were 4 to 6 weeks out before the storms.

Many of us can remember Katrina and tracking down houses that were abandoned at a truck stop or on the side of the highway, en route because the driver could make so much more money pulling for FEMA “right now.”

There is legitimate reason for concern.

If they commandeer a large portion of production/plants, all of us independents are going to feel that hit and, depending on your suppliers, that could be a BIG hit. ##

The scale of the loss in TX may lead to legally negating NIMBY as well. That would make the danger much greater for the independents. ##  (Editor’s Note: Crawford is responding to the reports about FEMA taking over production lines, and the potential impact on independent retailers, communities and producers.  See the most  report, linked here.) 

BobCrawfordDickMooreHousingPresidentFacebookIndustryVoicesManufacturedModularHousingProNewsBob Crawford
President
Dick Moore Housing

About-Face! City Council Mh Prohibition Reverses Course

October 16th, 2015 No comments

Boy, it is nice when I get to share good news.  Wins for the industry and sharing good news are probably the two best parts of my job, and fortunately for me, those two things almost always go together.

Last night in Huntsville, Texas, the city council reversed course on what started out looking like another bad news day.  A couple of weeks ago the city council met and voted on first reading (they need two readings to make ordinance changes official) to prohibit all manufactured homes from being sited on a lot within the city limits.  Initially they had a small exception for homes going inside communities and for replacement of existing manufactured homes, which incidentally is state law that TMHA worked to get passed years ago.  But other than those two limited exceptions, no more manufactured homes.

The first reading vote was 5 – 2 in favor of the MH prohibition.

A local reporter covering the council wrote a story about the proposed prohibition, and Jenny Hodge with MHI emailed me alerting me about what the council was proposing.  We then pulled titling records and retailer selling records and started contacting retailers with a selling presence in Huntsville.  Thanks to Rob here at TMHA, we were also able to gather some telling data about manufactured housing in Huntsville.  Specifically, we learned that from 2011 to 2014 a total of 843 manufactured homes were sold with the city of Huntsville listed in their address.  MH presence aside the demographics were incredibly telling of a city in real need of more affordable housing, not less.  The median income of a household in Huntsville is $27,362 per year.  Of the existing housing in the city 16.6 percent is more than 45 years old.  Housing supply, specifically affordable housing supply, is clearly constrained because nearly two-thirds of Huntsville residents are renters and in this large renter category 61.8 percent spend more than 35 percent of their monthly income on their rent.  To consider further limitations on sources of affordable housing seems illogical.

But as we all know this isn’t a logic puzzle, it’s politics.  Because this was one of the more rare instances where we actually found out about a proposal before it was final we were able to inform our retailers who would be adversely impacted by the proposed prohibition.  From there those retailers and other citizens who turned up last night at the council meeting to testify against the proposed ordinance took over – and did all the heavy political lifting I might add.

We cannot thank Gary Adamek with Reliable Homes and Les Stone with Clayton Homes enough for the work they did, the time they spent, and the persuasive testimony they provided last night.  These retailers and the results they secured in a near complete reversal by the council (they voted unanimously to continue to allow MH within city limits) once again demonstrates the power of engaged, passionate, local advocacy.

Again, when it comes to local (city and county) politics it is imperative that local constituents and businesses are there to advocate for their industry.  When this happens in a timely manner the industry’s chances of securing a victory increase many fold.

I hope that Gary and Les’ success last night serves as an example to all those in our industry about the power of local political engagement.

Everyone has heard the term, “it takes a village,” and that applies to political advocacy.  The power of timely information coupled with individuals willing to engage locally on behalf of their interests, the interests of the industry, and the interests for consumers who want affordable housing options, can prevail when properly deployed.  I’m happy to report such a deployment occurred last night. ##

http://www.texasmha.com/news/featured/about-face-city-council-mh-prohibition-reverses-course

“What’s Happened to the HUD Code Manufactured Home Industry?”

July 9th, 2014 No comments

Many years ago, a famous Movie Cowboy, Mayor of Beverly Hills, Editor of the Saturday Evening Post and Entertainer, Will Rodgers said, “If Stupidity got us into this mess, then why can't it get us out?”

Manufactured housing has seen its media image perpetuated and the public perception remains consistently tarnished for quite some time. The HUD Code manufactured home (MH) appears too often to be viewed by government, Realtors  ® and the public as not being desirable. The MH Industry has seen its home production decline and new MH Communities (MHCs) have declined as well. Many of these existing communities are tired with no “Innovation” or “Cool” factor for prospects.

On this date in 2014, along comes the “Tiny House,” a version of the factories “RV Park model.”

The “Tiny House” is less than 400 square feet. It sits on a trailer frame; it has wheels and a hitch. It appears to be of the same type of construction as a RV Park Model or a small HUD Code manufactured home. Media professionals like “Tiny Houses” for stories and about those who live in them. See example below.

tiny-houses-steven-lefer-industry-voices-posted-mhpronews-com

Wow, the media’s attention is so positive to the “Tiny House” that it far exceeds that of the old and tired HUD Trailer/Mobile Home industry. TV shows with Bob Vila endorse it and A+E TV Network will begin showing “Tiny House Nation” July 9, 2014 at 10 ET/11PT on their home product.

The articles point to how “Cute” and functional this small single wide home is; and how they even have a “Cool,” “Hip” factor with “NO” negative publicity. It's astonishing. These homeowners and their tiny houses brag about the size and in some cases folks live in 120 square feet, which is no bigger than a backyard shed. A woman in the article below left a MHPark to live one, ouch!

I understand “Four Lights Tiny House Company” will be attempting to build a “Village” for people to live in a community of them. What? How? Is this not an RV Community? If you are part of the HUD Code Manufactured Home Industry, I am sure you are not aware of this image change nor have the leaders of the industry addressed or invited these competing folks to their convention. Are they part of the HUD Industry or do they prefer NOT to be? It sure makes me wonder?

credit-tiny-house-nation-series-graphic-Wednesday-july-9-10et-11pt-

Image credit FYI.TV

Here are three links for you to ponder!

http://www.deadline.com/2014/02/ae-lifestyle-network-fyi-sets-first-slate-launch-date/

http://www.sanluisobispo.com/2013/12/31/2857011/bette-presley-arroyo-grande-house.html

http://www.bobvila.com/articles/tiny-house-village/

Where and what happened to the HUD Code Manufactured Home Industry? ##

steve-leflervicepresident-modular-lifestyles-industry-voices-mhpronews-com75x75-Steven Lefler
Vice President
Modular Lifestyles, Inc.
(888) 437-4587
Dual DRE and HCD Salesperson
Advanced Green Building Professional
CEC Solar Wind Retailer/Installer

http://www.modularlifestyles.com

(First image supplied by Steve Lefler)

(Editor's Note: MHProNews strongly believes that accurate terminology matters, and as was noted with Ken Haynes' Industry Voices guest column today, 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, was used as hyperbole and thus depending on the context, should not be taken literally. Steve Lefler well knows about the recent positive press from CBS News or the Boston Globe, among others, touting the value of today's manufactured home.

Those who know Lefler's noteworthy work in net-zero and near-off-the-grid factory built homes makes him a pioneer, and that has lead him to a level of what might politely be described as frustration with the industry-at-large and its leaders for not promoting our factory-built home product, as his column above suggests.

As a recent Masthead blog post – Manufactured Housing's Declaration of Independence – underscored, market facts tell us our industry ought to be booming.

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

Financing in the CFPB Era and the Path to Full Manufactured Home Communities

June 24th, 2014 No comments

Tony,

Great articles and comments made by others. 

I agree with 99% of what is said. The issues I see our industry has are: 

  1. People are so scared of the Dodd-Frank and Safe Act. Our industry needs to deal with this as the new reality and figuring out how to do business with these new regulations. 
  2. Lenders and community owners getting together on a win-win community home financing program that requires community owners to repurchase the homes that default and requires the lenders to originate loans at lower rates. 
  3. Community owners making their communities more appealing to today’s buyer:
    1. Updating their community amenities (Signage, clubhouse paint and carpet, pool furniture, road repairs, etc.)
    2. Enforcing communities rules to ensure that all homes are maintained and clean and neat
    3. Finding ways to improve the community lifestyle by organizing community events that enrich the residents lives.
    4. Moving in new homes and having 2 or more fully decorated models that will help prospects visualize how nice a manufactured home can be.
  4. Community owners should NOT jump into the rental home model so fast. Many markets can support true home sales business model by offering financing options that make sense to their customers. This does take more work but the full community with home OWNERS rather then renters is worth the extra work. 
  5. Community owners offering outside retailers attractive move in programs. 

We have implemented this in all our communities and are selling anywhere from 30-100 homes per community per year. 

Thanks for sharing this article. ##

scott-roberts-roberts-resorts-posted-industry-voices-guest-blog-mhpronews-com-Scott Roberts
Chief Executive Officer
Roberts Resorts
8350 E. Raintree DR. Ste 220
Scottsdale, AZ 85260
480.425.8696

scott-roberts-roberts-resorts-posted-industry-voices-guest-blog-mhpronews-com-(Editor's Note: The articles Scott's letter to the editor refers to are ones by Ross Kinzler and Jay Hamilton.

For those who may not have met Scott or know the progressive work being done in his communities, Scott was the recipient of the Manufactured Housing Institute's “Community of the Year” at the 2014 Congress and Expo.

The head shot above is actually part of a larger photo, that shows him holding his Community of the Year award.)

Manufactured Home Factory Tour with my Congressman

June 5th, 2014 No comments

Back in February when I visited with Congressman Bill Flores in Washington, I asked him if he had ever toured a manufactured housing plant.A couple of months ago, one of his staffers contacted me wanting information about the manufacturing facilities in Waco.I had replied with information about Fleetwood Waco and about Clayton Homes two facilities in Waco.I gave him information on the Clayton and Fleetwood facilities, explaining that while as TMHA Chairman I represented the entire state, my retail location had carried Fleetwood product for some years, but that I was sure either company would be more than willing to provide a tour.

Last Wednesday, I received an email from his scheduler, Jessica Harrison for contacting me about Representative Flores coming to visit Fleetwood Homes manufacturing facility in Waco.

Texas Manufactured Housing Association (TMHA) Director D.J. Pendleton, myself, and Gay Westbrook of the MHI, made the trip as well as Don McCann, the manager of the Clayton Homes Waco manufacturing facilities.We were joined there by Ray Parma and Zach Sanders, the GM and Sales Manager respectively of Fleetwood Waco. 

I can report to everyone that the visit and tour went outstandingly well.

Rep. Flores was very engaging of plant manager Ray Parma; the congressman asked questions during the plant tour about everything from frame camber, to shear wall design and how it impacted tie-downs.  I could just see Ray’s eyes gleaming with getting to share his many years of experience at the plant. It was a pleasure to all of us in attendance that the congressman genuinely cared about what went into our products and the people who made them.Zach had the opportunity to visit with his District Director during the tour and field questions from him as well.

fleetwood-plant-tour 6-2-2014-for-congressional-representative-flores-550x512-.png

While we can all brag about our differing product lines at shows and conventions, Ray and Don gave a great one-two punch by providing Rep. Flores with fact that between their facilities in Waco alone, there were over 750 constituent employees in his district and at least that many more in vendors that provide material for those facilities.

Rep. Flores met with all of us after the plant tour and discussed not only Dodd-Frank legislation and the CFPB, but also things that affect manufacturing facilities such as OSHA inspections and health care for employees.  It was good to see friendly competitors coming together to express concerns to the congressman. 

All in all, it was a great visit.

My sincerest thanks to all who took time out of their schedules to be a part of the event and thanks to past MHI Chairman and current Cavco CEO and Chairman, Joe Stegmayer, for allowing the use of the Waco facility for the tour. ##

karl-radde-texas-manufactured-housing-association-chairman-mhi-retailer-division-vice-chairman-posted-industry-voices-manufactured-housing-pro-news-mhpronews-comKarl Radde, GM
Southern Comfort Homes
Chair of TMHA and Vice-Chair of MHI National Retailer’s Council
karl@schomestx.com

Who’s in Charge Here?

June 3rd, 2014 No comments

Rick Rand’s excellent proposal for an all-industry conclave at a neutral location is gathering momentum. Such a venue should certainly not screen out the smaller operators who have always been a prime source of innovation, and it is vitally important that the “big guys” also be at the table. Make room for the various associations charged with the thankless task of placating the placating the industry’s many voices.

As a long-retired veteran of manufactured housing, I’m appalled at the conflicts, back-biting and lack of leadership that has always hamstrung our young industry. It was understandable in the early days when the largest manufacturers controlled less than ten percent of shipments and no other industry constituent was in a position make things happen beyond his own company (in those days, the leading players were all men).

Today, though manufactured housing is a shadow of its former self, the product itself is far better, the need for affordable housing is far greater, the leading manufacturers remain profitable, the market for manufactured housing communities is heating up and the stick competition is in disarray. So why are our sales volumes in the dumper?

It is true of course that we, as an industry, have made many mistakes. And we’ll make more.

In a free enterprise system, we learn from our mistakes and keep moving forward. That’s exactly what needs to happen at the kind of meeting Rick has proposed. Pull the tribe together with an agenda focused on the problems we’ve created, the opportunities ahead and agree upon a broad based strategy to deal with today’s challenges. Ideas and innovations are often sparked over a cup of coffee or glass of beer, and contacts have always been the lifeblood of the industry.

But far more is needed than griping about Dodd-Frank and what names we should use for our products. Consider some fundamentals.

Housing is one of America’s least efficient industries. That includes stick builders and us too. Why is that? Well, there’s no serious foreign or domestic competition, no real industry leadership, way too much regulation and negligible innovation. That’s been the case for a hundred years.

Academics and all sorts of advanced thinkers have, for at least that long, looked to industrializing the building process to break out of housing’s quagmire. It has finally happened. The industry we now call manufactured housing has demonstrated the ability to build good housing at roughly half the cost of traditional methods, and we have the black eyes to prove it.

As one result, America’s largest home builder is one of us, and one of the world’s richest men bankrolls MH financing. Something like 20 million Americans live in homes we’ve built and the vast majority of them appreciate the comfort and value those homes provide. There’s ever so much more that could and should be done, but we’ve made a better start than any other tilter at housing’s windmills. Many have tried.

One thing the MH industry agreed upon some 40 years ago was to unite under the HUD banner. That turned out to be a painful process with about as many negative as positive outcomes. We banded together again to reform that process with the Manufactured Housing Improvement Act of 2000 (MHIA 2000), but guess what? Big Brother has its own ideas about “Improvement” which do not include a lot of use for industry committee input.

We’ve got a lot going for us, and yet the squabbles continue. If there’s an industry strategy, it did not emerge from my recent research. What is happening is a plethora of tactics, put forward under various banners, mostly going nowhere.

As an industry professional, you can put forward some ideas for how to deal with these challenges. So can I, and I’ve done so in my recent book, Dueling Curves. It’s not enough.

Maybe at Rick’s gathering of the tribes, some sort of consensus can be reached, on a whole bunch of nifty ideas.

But that’s not enough either.

The single most important objective of such a congress—or whatever it’s to be called—should be to the emergence of industry leadership. Not a task force, committee or agency, but a person of vision who commands the respect of the industry.

A tribal chief who can weave the disparate strengths of the manufacturers, suppliers, financiers, retailers, MH owners and community operators into a strategy we can all salute. Oh well, yes, there will always be a few curmudgeons. No one will be entirely happy with any strategic vision adequate to unite us; not even the leader who ultimately propounds it.

But let me suggest this. Should we fail to unite behind competent leadership, I can suggest who will become take charge of the industry. Well, maybe I shouldn’t name names, but the initials are H.U.D. ##

bob-vahsholtz-author-dueling-curves-battle-for-housing-posted-industry-voices-guest-blog-mhpronews-com-manufatured-housing-professional-news-75x75-Bob Vahsholtz is the author of DUELING CURVES The Battle for Housing Bob can be reached at kingmidgetswest@gmail.com. Web: www.kingmidgetswest.com

Why Retailers and Community Operators should go to Tunica!

March 19th, 2014 No comments

As I read the digital 2014 Tunica Show brochure and business building and profit protecting seminar line up, it became crystal clear why Retailers and Community Owner/Operators ought to be in Tunica next Wednesday morning through Friday at noon (March 26-28)!

Retailers and Communities can get free:

  • Networking with your peers,
  • Compare Manufacturers side by side, over 80 homes will be on display!
  • Compare products and services needed by your business side by side,
  • Get the latest on Manufactured Home Lending available TODAY, from all the major lenders all under one roof.
  • Get expert guidance on Commercial Lending on MH Communities,
  • Get marketing and sales tips in the Dominate Your Local Market 2.0 Seminar, featuring manufactured housing marketing and sales veteran, L. A. “Tony” Kovach.
  • Compare CRM products in a free panel discussion with Scott Stroud and myself, and learn why they are a key to growing your sales in 2014 and beyond.
  • Get success tips on MH Communities (MHCs) from pros with successful firms who know!

Let me give you a quick snapshot of the last bullet point above, which will provide the reasons you need to grab your business cards, and have your photo ID so you can enter the Tunica Show, free!

In the last decade, as the numbers of retailers and shipments declined, manufactured home communities (MHC) have of necessity become on-site-home leasing and selling operations.

Communities have always had to do the types of services and duties that developers and multi-family operations have provided in the conventional housing world.

Tunica has become a magnet in recent years, attracting more communities as well as more retailers than in prior years.

Here is the line up of on the panel for MHC Lessons Learned, to be held Thursday, 10:00 AM – 10:55 AM on March 27th.

Success Tips from Manufactured Home Community Owners & Executives!

For anyone in or thinking about getting into the land-lease community business, this panel discussion is for you! Hear practical tips from community operators that can help you operate your community more professionally and profitably.

jenny-hodge-national-coummunities-council-ncc-industry-voices-manufactured-housing-pro-news

Jenny Hodge, Vice President of the National Communities Council (NCC), will be your panel moderator.

You can learn more about Jenny in this month's MHProNews exclusive interview A Cup of Coffee with…Jenny Hodge.

tammy-fonk-8-2013-cbre-posted-mhpronews-industryvoices

Among those on the three person MHC panel is Tammy Fonk, an Associate with the CBRE MH/RV National Group. Tammy was born and raised in the MH industry with two family owned communities. She operated the family owned company's sales and marketing business as well as having an active role in day to day community operations and resident relations. As a member of the MHRV Team, Tammy now works closely with public and private investors on building business relations and opportunities to enhance the Manufactured Housing Industry as well as the RV Resort and Marina properties in North America. Tammy works with owners and buyers of small, medium and larger communities in addition to representing large portfolio owners.

maria-horton-newport-pacific-capital-posted-industry-voices-manufactured-housing-pro-news-com

Maria Horton is a regional manager with West Coast powerhouse, Newport Pacific. Maria's bio is linked here, but having met her, let me tell you what her resume doesn't say. This is a warm, delightful engaging professional! You will love to hear here insights and experiences on this panel discussion.

rick-rand-great-value-homes-l-sam-zell-equity-lifestyle-properties-els-chair ... layton-clayton-bank-chairman-industry-voices-manufactured-home-pro-news

Rick Rand (l), Sam Zell (c), Jim Clayton (r)

Last and not least, is Rick Rand, who made quite a stir recently with this guest column. Rick was the subject of another MHProNews.com interview, A Cup of Coffee with…Rick Rand.

If online registration for the Tunica Show is closed by the time you read this, don't worry! You can bring your business card and a photo ID, retailers, communities, builder-developers, realtors and installers will be able to sign up at the door, free with those credentials!

Let me close with a tip of the hat to L. A. Tony Kovach. Dennis Hill recently gave Tony quite the well deserved public shout-out, for his key role in the come back of the Louisville Manufactured Housing Show.

Community Operations executive Ted Gross, with Continental Communities praised his session as being the best marketing presentation he had seen since coming into the MHC business.

We've worked with Tony about 90 days now, and let me tell you from first hand experience his deep passion for the MH Industry.

Tony cares about the success of people, operations and loves to see happy consumers enjoying our product.

I don't personally know of anyone who gives more time away for the benefit of the industry.

Tony's consulting and banner ads have helped our company's growth and presence in MH significantly! On MHProNews, he brings out the articles, experts and tackles the topics others shy away from, and is a friendly, peace loving professional and family man.

When you think about it, Tony's efforts to inspire our industry to do more and grow at shows like Louisville and Tunica are part of the rising tide of sales in our industry. You may or may not know it yet, but he makes you money just by being here and spreading the good word about our industry on sites like ManufacturedHomeLivingNews.com and here on MHProNews.com.

These are among the reasons why I'll be voting for him as MHI Supplier of the Year, and I hope others that read this will consider doing the same.

We will be at booth 13H in Harrah's Convention Hall. Change your plans! Make your travel arrangements! Fly, drive or hitch a ride, but we hope to see you in Tunica for the 2014 Tunica Manufactured Housing Show! ##

brad-nelms-coo-manufactured-homes-com-posted-mhpronews-comBrad Nelms
COO
ManufacturedHomes.com

ObamaCare: A Different Perspective

December 5th, 2013 No comments

As a retailer for over 30 years and having operated 15 or so locations, I have lost a few sales per year per dealership due to potential buyers having filed personal bankruptcies in the prior 7-14 years.  Most were due to un-insured medical expenses.

A 2007 Harvard study bears me out.  "Half of U.S. bankruptcies, affecting 2 million people annually, were attributable to illness or medical bills." An article by CNN in '09 raises that percentage to 60%.  Medically related bankruptcies have been rising steadily, up from 8% in 1981 (Businessweek).

ObamaCare – with all it's flaws – is designed to eliminate medical bankruptcy by insuring all without exemptions or caps for catastrophic illness.  What is so bad about that concept?

Just think what 3 -5 more sales per year per retailer would add up to, nationally! 

On top of that, all the site builders would also sell more homes.  Every non-commercial real estate agent would sell more existing homes and their sellers could buy a new home!

Multiply all this out, and you have thousands upon thousands of homes built and sold plus the jobs they create, and the trickle down effect on suppliers, lenders, etc.

It is just a fact that ObamaCare – if tweaked and successful – will be good for housing. I don't care about Olive Garden, I care about the Manufactured Housing Industry! 

Dodd/Frank is the looming disaster for housing, not ObamaCare.

frank-woody-republic-manufactured-homes-texas-credit-azlenews-posted-mhpronews-industry-voices-guest-blog-.pngFrank Woody, Owner
Republic Homes
Texas

(Editor's Note1: Frank Woody (r). Photo Credit azlenews. Frank is too modest to do this himself, so we are posting this for him! Weatherford Police Chief Manning presents an award to Frank Woody for going above and beyond to help law enforcement by providing them a place to conduct training.)

(Editor's Note2: this commentary by Frank Woody came as his 'reply' to the article linked below. His comments above are published at his request.)

http://www.MHProNews.com/home/industry-news/industry-in-focus/6659-dodd-frank-fix-hr-1779-preserving-access-to-manufactured-housing-act-of-2013-achieves-growing-bi-partisan-support- )

MHI 2013 Annual Meeting Recap

October 10th, 2013 No comments

IMHA Executive Director Mark Bowersox attended the Manufactured Housing Institute’s (MHI) annual meeting held September 28 – October 1 in Carlsbad, CA. As with most recent industry meetings, speakers and conversations at the event were focused on the impact of the Dodd-Frank consumer protection legislation and reforming the CFPB’s upcoming regulations. MHI and other industry representatives continue to work with the CFBP on three key areas:

Exemption for manufactured housing appraisal requirements

Based on the most recent rules issued by the CFPB loans on all new manufactured homes, regardless of whether or not they included land, are exempt from the appraisal requirement. Loans on existing manufactured homes, not including land, are also exempt from the appraisal requirements. Additionally, all mobile homes (pre-HUD code) home loans are exempt. The CFPB’s rule solidifying these exemptions is still pending. When finalized the rule will go into effect in January.

Key rule clarifications and exclusions

Loan originator compensation guidelines issued by the CFPB this summer provide the industry with key exclusions from the points and fees calculation that lenders must perform and clarifies certain activities that retail sales staff can engage in without being defined as loan originators.

Manufactured home sales price is excluded from the points and fees definition and does not have to be included in calculations performed by lenders unless a creditor has knowledge that the sales price includes compensation for loan origination activities.

 

Retail sales commissions paid to employees is excluded from points and fees calculation requirements unless the salesperson is receiving compensation from a lender for loan origination activities.

According to MHI, activities that do not classify a retailer or its sales personnel as loan originators include:

  • Providing or making available general information about creditors and loan originators that may offer financing for manufactured housing
  • Gathering or collecting supporting information or documentation on behalf of a consumer for inclusion in a credit application
  • Providing general credit application instructions so that a consumer can complete it themselves
  • Financing the sale of no more than three homes in a year.

Activities that will make a retail employee be considered a loan originator include:

  • Filling out a credit application for a customer
  • Discussing particular credit terms with a customer
  • Directing or influencing a customer to select a particular lender or creditor

MHI continues to seek from the CFPB to provide further clarification on what activities retailers can engage in without being defined as loan originators.

MHI is still working with the CFPB and various consumer interest groups on the need to revise the upcoming High Cost Mortgage Loan triggers for manufactured home loans. IMHA will continue to be engaged on this issue, along with MHI and other interested parties. ##

mark-bowersox-imha-posted-industry-voices-guest-blog-mhpronews.com-75x75pxl-.pngMark Bowersox
Executive Director
Indiana Manufactured Housing Association
Recreation Vehicle Indiana Council
3210 Rand Road
Indianapolis, IN  46241

(Editor's Note: You can find more info on the LO Comp Rule and HOEPA from DJ Pendelton's article published in the Industry In Focus Reports module, linked here.

 

You can also find Mark Bowersox's “It's Now or Never” featured article, linked here. )

Manufactured Housing Institute and Consumer Groups Urge CFPB to Change Loan Originator Guidelines; Support Builds for H.R. 1779

September 15th, 2013 No comments

In a communiqué to MHProNews, MHI's Vice President of Regulatory Affairs, Jason Boehlert shared the following report to Industry members.

MHI and Consumer Groups Partner to Revise CFPB Rules

On September 5th, MHI joined with a coalition of consumer advocacy organizations, including the Center for Responsible Lending (CRL), Corporation for Enterprise Development (CFED) and National Consumer Law Center (NCLC), to jointly urge the Consumer Financial Protection Bureau (CFPB) to amend key mortgage finance rules and preserve access to credit in the manufactured housing market.

Since May, key MHI members and staff have been working with representatives of these three consumer groups to develop a compromise on rules related to loan originator compensation and classification, and HOEPA High-Cost Mortgage triggers – issues that are addressed in the Preserving Access to Manufactured Housing Act (H.R. 1779).

manufactured-housing-institute-logo-posted-mhpronews-industry-voices=guest=blog

Negotiations have been taking place through the assistance and participation of majority and minority staff of the House Financial Services Committee and Senator Sherrod Brown, who serves as Chairman of the Senate Banking Subcommittee on Financial Institutions and Consumer Credit.

As a result of the negotiations, MHI and the three consumer organizations have agreed to jointly ask the CFPB to clarify and amend its rules in two key areas:

Loan Originator Compensation — for purposes of classifying a manufactured home retail salesperson as a Loan Originator, urge the CFPB to better clarify that as long as no incentive is provided or offered by the retailer or the lender to the individual salesperson to steer the consumer to a certain lender or loan product, then the salesperson should not be considered a Loan Originator.

While the CFPB has issued recent rules removing the manufactured home sales price and any sales commission paid to a sales person from points and fees calculations, an individual salesperson can still be classified as a Loan Originator by performing certain activities (i.e., taking an application, and referring a consumer to a lender). This activity would then classify the retailer as a mortgage broker. Both designations carry significant requirements and liabilities, most notably supervision by the CFPB.

HOEPA High-Cost Mortgage Triggers — consumer organizations have agreed to join with MHI in urging the CFPB to reopen its previous final rule on HOEPA. As a result of the significant dialogue that has taken place between the two sides, the consumer organizations have agreed that a significant reduction in access to credit would result in January 2014 (when the rule goes into effect) for the manufactured housing market unless the CFPB modifies the High-Cost Mortgage triggers. While the two sides have not agreed to a specific number, the willingness of the groups to push for the CFPB to reconsider their prior rulemaking is significant.

MHI and the consumer organizations will continue to meet with the CFPB on a joint basis in September on HOEPA issues. Pursuing a strategy of engagement with consumer groups provides the industry the opportunity to underscore the broad impact of CFPB rulemaking on consumers and the industry. In addition, it will provide a more rapid resolution of the industry’s concern when compared to a potentially protracted legislative battle over reopening the Dodd-Frank Act.

However, it is important to note that as the industry gains ground with the CFPB and the consumer groups, Congressional support for the H.R. 1779 continues to build.

Co-Sponsors to H.R. 1779 Grow

During the month-long Congressional recess, more than 20 U.S. Representatives added their names as co-sponsors to H.R. 1779. Currently, nearly 70 Representatives have co-sponsored the measure and support continues to grow. MHI thanks its members and the national network of state associations for their hard work in urging Representatives to co-sponsor this important legislation (to view a current list of co-sponsors, click here).

As has been previously mentioned, provisions of H.R. 1779 were included in GSE reform legislation (PATH Act; H.R. 2767) that was approved by the House Financial Services Committee and MHI staff continues to work with committee staff to seek an opportunity to move the legislation separately.

While the CFPB has provided some key relief in recent rulemakings to the manufactured housing industry – with respect to appraisals and the calculations of points and fees – work still remains to be done to amend HOEPA triggers and the Loan Originator definition to better represent the needs of the manufactured housing market. Absent regulatory relief, statutory change is necessary.

The industry is asked to continue its outreach efforts to U.S. Representatives. Urge them to co-sponsor H.R. 1779. For more information, click here to access MHI’s action alert. ##

jason-boehlert-mhi-manufactuired-housing-pro=news-.pngJason Boehlert
Manufactured Housing Institute (MHI)
Vice President of Government Affairs
1655 North Fort Meyer Drive
Suite 104
Arlington, VA 22209

MHI members can contact Jason Boehlert at jboehlert@mfghome.org or (703) 558-0660.

(Logo image credits to their respective organizations. Photo credit of Jason Boehlert, MHProNews.com)

(Editor's Note:  Consumer groups did NOT in fact get on board for HR 1779, as we editorially observed in this blog post here.)