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21st Mortgage Corporation Manufactured Housing Loan Data, Per Federal Sources

June 25th, 2019 Comments off

21stMortgageCorpLogoFederalManufacturedHousingDataCFPBLogoBerkshireHathawayClaytonHomesSisterCompanyMHProNews

The following facts is the most recent summary of information available currently from the Consumer Financial Protection Bureau (CFPB) on HMDA data for 21st Mortgage Corporation loans on HUD Code manufactured homes.

 

21st is part of the metro-Omaha, NE based Berkshire Hathaway owned family of brands and is based in Metro Knoxville, TN.

Unlike Clayton Homes and Vanderbilt Mortgage and Finance (VMF), as thousands of manufactured housing industry professionals know, they ‘serve’ independent retailers and communities, as opposed to Clayton Homes directly.

That they like or prefer making loans on Clayton Homes built product should be evident from the report linked below.  But there are good reasons for them to make loans on other producer’s brands, because it arguably provides them with an upper hand, causing other producers of manufactured housing to have a degree of dependence and thus leverage.

 

SmokingGunEvidenceOfAntiTrustMonopolisticCollusionMoatClaytonHomesKevinClayton21stMortgageTimWilliamsWarrenBuffettMHLivingNewsMHProNews

In a series of direct quotes in context, a document from 21st Mortgage signed by Tim Williams, and video recorded comments by Kevin Clayton, these all line up to demonstrate how independent retailers, communities, and producers – among others – where purportedly harmed by action that could be deemed an antitrust violation. 21st, Clayton, and their association mouthpiece, MHI, and their outside attorney have all been asked to comment on these facts and allegations.  They’ve repeatedly declined comment.  https://www.manufacturedhomelivingnews.com/bridging-gap-affordable-housing-solution-yields-higher-pay-more-wealth-but-corrupt-rigged-billionaires-moat-is-barrier/

 

Here is the 21st Mortgage Corporation HMDA data from federal sources noted at the bottom of the graphic.

 

21stMortgageCorpHMDAData

 

You can see by looking at our ‘almost midnight’ report from 6.24.2019 that Vanderbilt made FHA loans, but 21st originated none. That is federal confirmation of a prior news tip that we received from 21st personnel on an off-the-record basis. Those middle management type sources were not able to articulate an answer as to why 21st would stop making such loans, but why VMF would continue to offer them?

You can compare 21st and with VMF’s data, by accessing the report from the linked text-image box below.

 

Vanderbilt Mortgage and Finance Manufactured Home Loan Origination Data, Per Consumer Financial Protection Bureau

 

As with other federal data, compiling and sorting the information has a degree of lag time.  A more complete snapshot from 2015 is available below.  Note that Triad Financial, due to the way they are structured, is not reflected in the screen capture of the federal dataset below. But they are larger that several of the lenders shown, while smaller than 21st, VMF, or Wells Fargo, per sources. It is therefor interesting to note that the top 3 lenders for the year below all have direct ties to Berkshire Hathaway, which owns a sizeable stake in Wells Fargo. 

 

2015HMDAdataManufacturedHousingLendersDailyBusinessNewsMHProNews

Download and open this graphic to see it full size, which is more than double the size visible now.

Both VMF and 21st qualify for the 10/10 rule established by FHA, which made Berkshire Hathaway the dominating lender in that realm.  Was that 10/10 rule threshold a coincidence?  Or was it useful to Berkshire and a sign of some darker relationship that bears federal scrutiny?

 

FollowThe MoneyPayMoreAttentionToWhatPeopleDothanwhatTheySaySpySea72MartyLavinYachtManufacturedHousingINdustryProMHProNews

Marty wasn’t the first to say these quotable quotes, but that he said them and has such close ties to MHI, GSEs, the ‘big boys’ and manufactured home lending should cause the thoughtful reader and inquiring mind to pause and wonder.

 

It is worth mentioning that Harvard’s Eric Belsky said that credit was the lifeblood of housing.  That was dramatically demonstrated by the mortgage/credit/housing crisis of 2008, but which straddled other years.

 

EricBelksyManufacturedHousingIndustryManufacuredHomeManufacturedHousingInstituteResearchDataAffordbleHousingMHProNewsDailyBuisnessNews575

Why did Belsky miss his predicted date? Because it came before Buffett’s entry into MH? See the attorney-reviewed report linked here.

The Government Sponsored Enterprises (GSEs) of Fannie Mae and Freddie Mac have used manufactured housing’s prior credit crisis that began to become apparent with the slide in sales, shipments, and production in 1999, but accelerated into the early 2000s.

 

BloombergShipmentProductionGraphicManufacturedHousingIndustryDailyBusinessNewsMHProNews

April data reflects month 8th of the downturn, with nary a whimper from MHI or the big boys. Why? 

While losses in manufactured housing loan portfolios was significant, as those who recall Greentree, Conseco, Associates and other lenders who essentially vanished from the manufactured housing scene as a result of the meltdown in MHVille that began to be evidenced in 1999.  By comparison to conventional housing losses in 2008, while significant to our industry, it was as an insider called it a “pimple on an elephant’s ass.” See that comment and more from 2017 in the report linked below.

 

“An Elephant Ass,” Understanding GSEs, Duty to Serve, Manufactured Home Lending

 

Why did lending return to conventional housing but not to manufactured homes?  Bear in mind that FHFA data in 2018 reflected that manufactured housing can appreciate.  HUD Secretary Carson has pointed to that fact in some of his 2019 talks touting the potential of manufactured homes.

 

 

Democratic lawmakers have pressed the Consumer Financial Protection Bureau (CFPB) to investigate Clayton Homes and their affiliated lenders.  Several of them are 2020 hopefuls.  That report can be accessed via the text-image box below. 

 

Senate Democrats – Including 2020 Presidential Contenders – Ask CFPB Protect Consumers Against Predatory Lenders — Point Finger at Clayton Homes, Berkshire Hathaway Lending

 

The non-partisan Manufactured Housing Association for Regulatory Reform (MHARR) is asking for Congress to investigate what they have deemed is the failed roll-out of the GSEs of Fannie Mae and Freddie Mac’s Duty to Serve or DTS. One example of their concerns is reflected in their report, linked below.

 

MarkWeissDTSQuoteManufacturedHousingAssocRegulatoryReformMHARRDailyBusinessNewsMHproNews

George F. Allen is increasingly seen as compensated MHI surrogate. Allen has pointed out the obvious, that MHARR is a sponsor of our website. But that’s out in the open, MHARR has banner ads here. What Allen fails to mention is that MHI used to sponsor MHProNews too. So too did Clayton Homes, and 21st Mortgage.  Our coverage of these issues began before MHARR became a sponsor, and while Berkshire brands and others with ties to MHI were still sponsors.  That’s evidence that our reports have been based upon our LLC’s own research and work, without favor.  We follow the facts, evidence, trends, common-sense, and the money trail. We give others an opportunity to respond to concerns. That’s arguably why our audience size and engagement levels on MHProNews dwarfs Allen’s and MHInsider’s combined. We are by far the #1 largest and most-read in MHVille. 

See the related reports below the byline for more.  That’s this morning’s pre-dawn edition of manufactured home “Industry News, Tips, and Views Pros Can Use,” © where “We Provide, You Decide.” ©. ## (News, fact-checks, analysis, and commentary.)

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Nicole Friedman, Ben Eisen, Wall Street Journal – Fannie, Freddie, Manufactured Homes, and MH Financing – Part 1

TimeToInvestigateFannieFreddieMishandlingofDutyToServeDTSMHARRissuesPerspectiveManufacturredHousingAssocRegulatoryReformLogo

https://manufacturedhousingassociationregulatoryreform.org/time-to-investigate-fannie-and-freddies-mishandling-of-dts/

HUD Secretary Ben Carson, Affordable Housing, Obscuring the Truth, Innovations in Housing, and Manufactured Homes

 

 

 

 

 

Vanderbilt Mortgage and Finance Manufactured Home Loan Origination Data, Per Consumer Financial Protection Bureau

June 24th, 2019 Comments off

 

VanderbiltMortgageFinanceClaytonHomesLoanDataReportDailyBusinessNewsManufacturedHomeMHProNews 

The following is the most recent summary information available currently from the Consumer Financial Protection Bureau (CFPB) on HMDA data for Vanderbilt Mortgage and Finance (VMF) loans on HUD Code manufactured homes.

 

VMF is the ‘captive’ lender for vertically integrated Clayton Homes-owned retail centers.

Metro Knoxville, TN based Clayton Homes and VMF, as thousands of manufactured housing industry professionals know, are wholly owned subsidiaries of Omaha, NE based Berkshire Hathaway.

HMDADisclosureSummaryCFPB2016DailyBusinessNewsManufacturedHousingIndustryMHProNews

HMDA loan disclosure summaries, national data, per CFPB, FFEIC, for the Daily Business News on MHProNews.

 

A companion report to this will be published tomorrow which reveals 21st Mortgage Corporation HMDA data for the same time frame.  As a point of reference, last year (2018) Clayton claimed that their 2017 market share was as follows.

ClaytonBuilt47.7percentMarketGraphic2017ShareDailyBusinessNewsMHProNews

The comparisons between 21st and VMF should be noteworthy.

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That’s this Monday night final

MarkWeissDTSQuoteManufacturedHousingAssocRegulatoryReformMHARRDailyBusinessNewsMHproNews

George F. Allen is increasingly seen as compensated MHI surrogate. Allen has pointed out the obvious, that MHARR is a sponsor of our website. But that’s out in the open, MHARR has banner ads here. What Allen fails to mention is that MHI used to sponsor MHProNews too. So too did Clayton Homes, and 21st Mortgage. Our coverage of these issues began before MHARR became a sponsor, and while Berkshire brands and others with ties to MHI were still sponsors. That’s evidence that our reports have been based upon our LLC’s own research and work, without favor.

Nicole Friedman, Ben Eisen, Wall Street Journal – Fannie, Freddie, Manufactured Homes, and MH Financing – Part 1

June 24th, 2019 Comments off

 

NicoleFriedmanWallStreetJournalBerkshireHathawayInsuranceReporterFannieMaeFreddieMacFHFAManufacturedHousingInstituteClaytonHomesMHProNews600LogoPhoto

Photo on left, credit, Wall Street Journal. Collage credit, MHProNews.

Nicole Friedman and Ben Eisen were the co-authors on a story for the Wall Street Journal entitled, “Fannie and Freddie’s Latest Push: Factory-Built Homes,” with a subtitle: “Mortgage giants hope to help low- and middle-class Americans buy homes but programs’ narrow reach and consumer bias impede progress.”

 

This will be part one of a planned multiple part fact-check and analysis of that article.

Headlines are not always written by the reporter(s). Headlines and subheadings are often provided or tweaked by editors. Indeed, when an article is published, editors bear some level of responsibility for the contents and accuracy of that article.

Ben Eisen’s Twitter feed includes these pull quotes from last week:

  • “Fannie and Freddie are making a push into the opaque world of manufactured housing, a surprisingly complex task”
  • “The gatekeepers of America’s housing market want to make it more affordable to buy a manufactured home. So far, they have found it a tough sell.”

Those statements are fair enough. Indeed, they merit more reflection in upcoming reports on MHProNews. For example, why is manufactured housing “opaque” – isn’t that a fair question?

Indeed, the subheading cited above itself sets up a clear contradiction.

Congress mandated lending on manufactured homes by the Government Sponsored Enterprises (GSEs) of Fannie Mae and Freddie Mac.  What Congress didn’t do is tell the GSEs that they could force manufactured home producers to create a so-called ‘new class’ of more expensive HUD Code manufactured homes, and offer competitive lending only on those units.

The ‘new class’ of manufactured homes that the GSEs are lending on is a type of costlier HUD Code manufactured housing that Clayton Homes and their association mouthpiece, the Manufactured Housing Institute (MHI), has supported. So, whomever at the WSJ is responsible for that subheading wittingly or not set up a contradiction that is not clearly addressed.

Congress wanted lending on all types of manufactured homes precisely to promote affordable housing.  But Clayton Homes – which is well known for moving into conventional housing – with the cover of MHI support, is promoting an entirely different kind of home that is NOT available to those ‘low and lower-middle class’ buyers’ that Congress had in mind when enacting the Housing and Economic Recovery Act (HERA) of 2008. Is there a conflict of interest at play between MHI’s claimed mission and Clayton Homes desire to sell more expensive housing?

There are millions today who believe in fake news.  In fairness, there are some reports that are reasonably agenda-free. Others are heavily tainted by spin, a hidden, or sometimes obvious agenda.  Therefor, the prudent reader must approach each article with a degree of skepticism. Some questions that a truth-seeking reader ought to ask in discerning a report or article could include: is the article or report balanced?  Are several points of objectively view represented?

With those points and tests for bias understood, the Daily Business News of MHProNews will do the first of what promises to be a multiple part fact-check and analysis of a new report by Nicole Friedman and Ben Eisen of the mildly right-of-center Wall Street Journal (WJ).

 

WallStreetJournalLeftRightBiasSharylAttikissonManufacturedHousingMHProNews

 

Eisen’s LinkedIn profile reflects the following.

 

BenEisenBankingReporterWallStreetJournalFannieMaeFreddieMacGSEsFHFAManufacturedHomeLoansClaytonHomesManufacturedHousingInstituteMHProNews

 

The 411 according to the Wall Street Journal on Nicole Friedman is as follows.

Nicole Friedman covers Berkshire Hathaway and insurance for The Wall Street Journal.”  A headline from that same search reveals this by Friedman, “Berkshire Hathaway has underperformed the S&P 500 for a decade, forcing Warren Buffett into a position he rarely resides: on the defensive.”

Friedman’s Twitter feed includes the following pull quote:

  • Manufactured-home builders are trying to erase their industry’s stigma, and they’re hoping Fannie Mae and Freddie Mac can help. Warren Buffett’s Clayton Homes has a lot at stake.”

For first-time readers, let’s note that MHProNews for some years has often turned direct quotes bold and brown to make them pop but otherwise the text is as quoted.

Friedman’s LinkedIn profile is shown below.

 

NicoleFriedmanWallStreetJournalBerkshireHathawayInsuranceReporterFannieMaeFreddieMacFHFAManufacturedHousingInstituteClaytonHomesMHProNews

 

Let’s look at some pull quotes from their WSJ article:

  • This [loan] product hasn’t been about volume. It’s about changing expectations,” said Jonathan Lawless, vice president of product development and affordable housing at Fannie Mae. “We’re going to get to volumes, but given all that has to change, it is going to take a frustratingly long period of time.”
  • A precrisis [the 2008 housing/mortgage crisis] effort by Fannie Mae to treat manufactured homes like site-built properties fizzled. In 2008, when Congress put the two companies into government conservatorship, it told them to promote affordable housing, including by taking a more active role in this market.”

 

The first bulleted statement above citing Lawless is surprising on several levels.  That will be unpacked in a future report.

The second one is equally noteworthy. There have indeed been several prior efforts for the GSEs to get involved in manufactured housing. To say that they “fizzled” leaves one asking, why?  What happened that caused lending on manufactured homes to ‘fizzle’ for the GSEs, when 21st Mortgage Corp, Vanderbilt Mortgage and Finance (VMF), ECN owned Triad Financial Services (TFS), Credit Human and others lending on manufactured homes could get loan performance and volume, and the GSEs could not?

Eisen and Friedman don’t explain that phrase to their readers. Nor do they clearly address the question above.

 

Lack of Balance in Sourcing?

Nor does Eisen and Friedman disclose that they never contacted the National Association of Manufactured Housing Community Owners (NAMHCO), per an official with that organization to MHProNews. Given that Eisen and Friedman mentioned that a ‘new class’ manufactured home was delivered into a land-lease community from the National Mall and the Innovative Housing Showcase earlier this month, one might wonder why they failed to contact that trade group?

But more troubling is the fact that Eisen and Friedman, per sources, contacted the Manufactured Housing Association for Regulatory Reform (MHARR). Why was MHARR not mentioned at all in the WSJ story, given that they interviewed MHARR President Mark Weiss, JD, for about an hour?

MHProNews asked the Wall Street Journal writers about those questions.  They replied on other points they were asked about, but not yet on those concerns regarding NAMHCO and MHARR. A WSJ editor was also contacted and has not yet replied. In fairness, it was getting late in the day. So they may still provide follow up replies to our inquiries.

It must be noted that MHLivingNews reported on Saturday about a letter from Senator Tina Smith (MN-D) to a bipartisan group of Senate lawmakers, urging a broader application of lending on manufactured homes by the GSEs in the upcoming housing reform.  That report is linked below.

 

While Senator Smith doesn’t mention MHARR, and cites different examples, it is noteworthy that Smith and MHARR – from different vantagepoints – share a similar concern. Namely, that the GSEs are not living up to their Congressional mandate to properly support manufactured home lending.  MHARR argues that after over a decade of delays, that sad fact of a ‘flawed’ roll out of the GSEs Duty to Serve (DTS) mandates merit congressional inquiries.

It is one of several points that the WSJ story as published missed or failed to flesh-out in a meaningful fashion.

Part two of this planned multiple part analysis and fact check of the Eisen and Friedman article on manufactured housing is planned for later this week, to give the pair and their editors an opportunity to respond to follow up questions from MHProNews.

That today’s second installment of manufactured home “Industry News, Tips, and Views Pros Can Use,” © where “We Provide, You Decide.” ©. ## (News, fact-checks, analysis, and commentary.)

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FHA Incentives For Property Owners Investing in One of Over 8000 Opportunity Zones

May 9th, 2019 Comments off

FHAIncentivesForPropertyOwnersInvestingInOver8000OpportunityZonesManufacturedHousingMHProNews

In the wake of encouraging commentary last week and this week by HUD Secretary Ben Carson regarding manufactured housing – which included his tying that in with Opportunity Zones – comes this news today from HUD.

 

To set the stage for this release, ICYMI or need a refresher, see the report at the link here that contains the official statement by Secretary Carson on manufactured housing, which included his thoughts on Opportunity Zones.

 

HUDGovPressNewsMediaDailyBusinessNewsMHPronEws

FHA OFFERS INCENTIVES FOR PROPERTY OWNERS WHO INVEST IN OPPORTUNITY ZONES
Lower costs and dedicated underwriters to stimulate housing investment in distressed neighborhoods

 

WASHINGTON – The Federal Housing Administration (FHA) today announced a package of incentives to encourage multi-family property owners to invest in thousands of neighborhoods located in Opportunity Zones across the nation. Read today’s Housing Notice

FHA is introducing reduced application fees paid by property owners applying for certain multifamily mortgage insurance programs for the development or rehabilitation of apartment units located, or proposed to be located, in Opportunity Zones. In addition, FHA is designating teams of senior underwriters to review these applications to ensure the most attentive and timely processing.

When more investors can apply for benefits in Opportunity Zones, more investors can supply benefits in Opportunity Zones.  And that’s exactly the intention of today’s Notice,” said Secretary Carson. “These FHA incentives, combined with the preference points HUD already offers grantees for activities in Opportunity Zones, show how this Administration is maximizing the power of public-private partnerships to never forget – and always lift up – our nation’s “the forgotten men and women.”

 

Reduced Application Fees

Applicants to FHA’s New Construction and Substantial Rehabilitation (Section 221(d)(4))Urban Renewal and Concentrated Development (Section 220), and Purchase or Refinance of Existing Multifamily Property (Section 223(f)) multifamily mortgage insurance programs will be eligible for significantly lower application fees provided the property is located within qualified Opportunity Zones.  For transactions that are defined as ‘broadly affordable,’ FHA’s application fee will be reduced from the current $3 per thousand dollars of the requested mortgage amount to $1 per thousand dollars of the requested mortgage amount, resulting in an average cost saving to applicants of approximately $28,000. ‘Broadly affordable’ is defined as developments in which at least 90 percent of the units are Section 8-eligible or deemed affordable under the Low-Income Housing Tax Credit (LIHTC)

program.

“When more investors can apply for benefits in Opportunity Zones, more investors can supply benefits in Opportunity Zones.  And that’s exactly the intention of today’s Notice,” said Secretary Ben Carson. “These FHA incentives, combined with the preference points HUD already offers grantees for activities in Opportunity Zones, show how this Administration is maximizing the power of public-private partnerships to never forget – and always lift up – our nation’s “forgotten men and women.”

For ‘market rate’ and ‘affordable’ transactions, FHA will reduce application fees from $3 to $2 per thousand dollars of the requested mortgage amount, resulting in an estimated average cost savings of $14,000.  Read more about the definitions of broadly affordable and affordable in the Federal Register.  

 

Designated Senior Underwriters

            FHA will designate seasoned underwriters to process applications located in Opportunity Zones to ensure expert and expedient reviews. Applications must meet the following criteria to qualify for reduced fees and designated underwriting:

  • The application is submitted under FHA’s Section 221(d)(4), Section 220, or Section 223(f) program for a property located in, or proposed to be located in, a qualified Opportunity Zone, and/or:
  • The application involves an investment from a Qualified Opportunity Fund (QOF).

The new incentives offered by FHA are available immediately for applicants of market-rate properties that have not yet submitted a pre-application, and for applicants for affordable properties that have not yet applied.

 

Opportunity Zones

Created under the 2017 Tax Cuts and Jobs Act, Opportunity Zones are intended to stimulate economic development and job creation in distressed low-income communities by incentivizing long-term capital investment.  The program offers capital gains tax relief to those who invest in these targeted distressed areas. This program is anticipated to spur approximately $100 billion of private capital investment in Opportunity Zones. There are more than 8,700 census tracts designated as Opportunity Zones in all 50 States and in the U.S. territories. Read more about the Opportunity Zones program.

 

###

 

HUD’s mission is to create strong, sustainable, inclusive communities and quality affordable homes for all.

That’s this afternoon’s chapter of “News through the lens of manufactured homes, and factory-built housing” © where “We Provide, You Decide.” © ## (News, analysis, and commentary.)

 

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Declining Manufactured Home Shipments More Serious Than Retailers, Communities Being Told

 

 

 

 

 

 

 

DTS Manufactured Home Lending Committee Member Says MHI in “Unholy Alliance” to Divert Needed GSE Support Away from Manufactured Housing

March 12th, 2019 Comments off

 

WhisleblowerDTSManufacturedHomeLendingCommitteeMemberSaysMHIUnholyAllianceDivertNeedLendingfromManufacturedHousingDailyBusinessNewsMHproNews

The source of the following memo is known to have served on one or more Duty to Serve (DTS) committee(s) with the Government Sponsored Enterprises (GSE) of Fannie Mae, Freddie Mac, other Manufactured Housing Institute (MHI) staff, and MHI member companies that participated in various discussions about access to lower cost lending for manufactured homes.

 

Never forget, not every MHI member agrees with what the Arlington, VA based trade group is doing.

The memo itself says it was not for attribution, meaning it was sent to MHProNews publisher L. A. ‘Tony’ Kovach for consideration of coverage on an ‘off the record’ basis.

The edits by the Daily Business News are shown in brackets, for example, to make clear that the sender provided an article from Housing Wire and was commenting on it.

The memo raises several troubling concerns that parallel issues that MHProNews has previously spotlighted. First, here’s the text of the memo to MHProNews.

 

Tony:

[I] offer the following points with respect to the article…[below from Housing Wire] on GSE reform and MHI signed on to – and thereby promoting — a “go slow” approach. These are not for specific attribution…but point out the hypocrisy inherent in MHI’s conflicting positions:

1.     How can MHI claim to be pressing the GSEs to implement DTS in a timely fashion, when they simultaneously advocate a “go slow” approach to needed GSE reforms overall? 

2.     How can MHI align itself with the site-built industry, which does not want GSE reform to negatively impact their much larger purchase-money loans (thus the overly-cautious go-slow approach), when the HUD Code manufactured housing industry wants and needs – on an expedited basis – GSE support for its much smaller consumer loans?

3.     This amounts to an “unholy alliance” between MHI and the site-built industry, which is trying to preserve its virtual monopoly on GSE support.

4.     This, however, is consistent with – and would seem to confirm – that MHI and large HUD Code manufacturers have cut a bargain with the GSEs and FHFA to divert much of DTS to a euphemistic “new class” of homes, which are not mainstream, affordable, manufactured homes (and particularly not chattel-financed manufactured homes).

5.     How can MHI claim to be working in Congress to enact beneficial reforms for the HUD Code industry when they are simultaneously trying to effectively slow-roll reforms that have already been mandated by Congress as part of DTS?

Conclusion: There can be no legitimate or acceptable private explanation or excuse by MHI behind closed doors for the predicament that they’ve placed the industry in with this action.  Instead, the inherent hypocrisy must be exposed and openly debated.”

  

MHI, Clayton and their allies have ducked such debate before.  The memo’s commentary and analysis draws to a conclusion with the words, “See the full article below.” That article by Housing Wire said the following, and is provided under fair use guidelines that apply for media.

 

FHFAFederalHousingFinanceAgencyDailyBusinessNewsMHProNews

Shown for illustration purposes, this isn’t directly related to Housing Wire’s report.

Housing industry to FHFA: Go slow on GSE reform

Letter encourages agency to make affordable housing a priority

March 6, 2019

By Kelsey Ramírez

 

Talk of housing reform is heating up, and now several members of the housing industry are encouraging the Federal Housing Finance Agency not to go too fast, and to make sure affordable housing remains a priority throughout the process.

 

Many key members of the housing industry sent a letter to the FHFA, encouraging it to build on the current structure of the government-sponsored enterprises Fannie Mae and Freddie Mac.

 

“As the Federal Housing Finance Agency (FHFA) begins its next chapter under new leadership, our organizations seek to emphasize the vital role that Fannie Mae and Freddie Mac, the Government-Sponsored Enterprises (GSEs), currently play in the mortgage market,” the letter, addressed to FHFA Acting Director Joseph Otting, said. “There is a unique opportunity today to maintain and build on important progress that has already been achieved in reforming the operations of the GSEs since the financial crisis.”

 

The letter states that GSE reform and an end to the conservatorship is ultimately necessary in order to ensure the safety and soundness of the housing market.

However, the letter encourages policymakers to act slowly and carefully.

 

“Any efforts to meaningfully change the GSEs’ market presence must be undertaken carefully, with vigilant monitoring and frequent recalibration (if necessary) to avoid disruptions to the flow of mortgage credit into the single-family and multifamily real estate markets,” it states. “Efforts to reduce the GSEs’ footprint should not move forward unless there is compelling evidence that the private market is able to assume an expanded role.”

 

The housing industry argued that GSE reform should accomplish two key objectives:

 

1. Preserving what works in the current system

2. Maintaining stability by avoiding unintended adverse consequences for borrowers, lenders, investors or taxpayers.

 

“Recognizing the vital role that the GSEs currently play, it is critical that any administrative reforms do not disturb essential functions in the secondary mortgage market,” the letter said. “Policymakers must take great care that actions to institute reforms to the GSEs are prudently developed and implemented over a sensible time horizon.”

 

The letter asks that housing finance reform maintain the 30-year fixed-rate mortgage in the single-family market. It also asks that the GSEs still be required to meet the needs of underserved markets and support affordable housing.

 

“We urge policymakers to take these principles into account to ensure that access and affordability are preserved under the current, and any future, housing finance regime,” the letter concludes.

 

The Senate Committee on Banking, Housing and Urban Affairs recently voted to advance the nomination of Mark Calabria as director of the FHFA to a full Senate vote.

 

Previously, Calabria famously called for the end of the conservatorship of Fannie Mae and Freddie Mac. Click here to read more about what Calabria as director of the FHFA would mean for the future of the GSEs.

 

Now, many think that GSE reform could be on the verge of becoming a reality.

 

The letter was signed by: the Asian Real Estate Association of America, the Consumer Federation of America, the Consumer Mortgage CoalitionEnterprise Community PartnersHabitat for Humanity International Leading Builders of AmericaLocal Initiatives Support Corporation Make RoomManufactured Housing Institute Mercy Housing, the Mortgage Bankers AssociationNareit, the National Apartment Association, the National Association of Affordable Housing Lenders, the National Association of Hispanic Real Estate Professionals, the National Association of Home Builders, the National Association of Real Estate Brokers, the National Association of Realtors, the National Community Stabilization Trust, the National Council of State Housing AgenciesNational Housing ConferenceNational Housing Trust, National League of Cities, the National Multifamily Housing Council, The Real Estate Roundtable, the Real Estate Services Providers CouncilStewards of Affordable Housing for the Future and Up for Growth Action.

 

Click here to read the letter in full.

 

—- End of Housing Wire article sent by confidential source to MHProNews —-

DUTYtoServePaulBarrettoFannieMaeManufacturedHousingIndustryDailyBusinessNewsMHProNews550

It must be recalled that Fannie Mae’s Paul Barretto told MHProNews in front of dozens of industry professionals that neither 21st Mortgage Corp, nor Vanderbilt Mortgage and Finance (VMF) provided data to the GSEs to help them launch a chattel loan program. By contrast, other MHI member lenders did. That begs the question, why did the Berkshire Hathaway brands work to foil lending on ‘regular’ manufactured homes, while diverting GSE lending to the Clayton Homes backed “new class of homes?” MHI and official voices in Knoxville are mute on those types of #NettlesomeThings questions. http://www.mhpronews.com/blogs/daily-business-news/fannie-maes-paul-barretto-news-making-remarks-in-tunica/

 

Additional Concerns This MHI Memo Raises?

To set the context for this analysis, a similar prior case that also involved lending will be recalled. 

In 2015, MHProNews’ publisher – acting on a tip from within MHI – publicly called out Manufactured Housing Institute (MHI) President and CEO Richard ‘Dick’ Jennison and MHI SVP Lesli Gooch for attempting to deliberately mislead their own members. The subject of the alleged deception was a Senate hearing with then Consumer Financial Protection Bureau (CFPB) Director Richard Cordray regarding the MHI backed Preserving Access to Manufactured Housing Act.  Recall that Preserving Access was never passed.

But at that time, MHI had issued an emailed statement to their members that was accurate in quoting then Senator Joe Donnelly (IN-D), but failed to mention the pushback from Cordray, or other key parts of the full discussion. Those omissions by MHI to their members completely changed the meaning and context for what had actually occurred in that hearing. MHI postured progress, but in fact no progress had occurred. The MHI source provided CSPAN video to back up their contention that MHI was deliberately misleading their own members, and through MHI state affiliates, the Arlington, VA based trade group was misleading the industry at large.

 

JasonBoehlertManufacturedHousingInstituteSeniorVPLogoMHIlogoQuoteMHProNews

In hindsight, which Warren Buffett reminds us that the rear view mirror is clearer than the windshield, it is now clear that the MHI plan for Preserving Access was filled with contradictions and purported head fakes. It didn’t matter to the powers that be if Preserving Access passed or not. But as the Jason Boehlert quote above reminds readers, it wasn’t expected to pass. So why did MHI spend millions in the effort? http://www.mhmarketingsalesmanagement.com/blogs/industryvoices/2012-election-results-and-coming-lame-duck-session/

 

Based upon the evidence presented, which MHI did not dispute, a column by Tony Kovach called Jennison and Gooch out for their alleged attempt at the deception of the industry and the Arlington, VA based trade association’s own members, and asked for their resignation and or termination. But instead, then MHI Chairman Tim Williams, who is president and CEO of Berkshire Hathaway owned 21st Mortgage Corp, arranged for a vote of confidence in Jennison.

 

VicePresidentMikePenceWifeKarenHandOverHeartPledgeColts49ersGameWashingtonTimesDailyBusinessNewsMHProNews

Notice. One can agree or disagree with 21st Mortgage CEO and prior MHI Chairman Tim Williams’ presentation, from which the slide above was taken with permission, while still questioning how it came to be that Williams was being intellectually at odds with Berkshire Hathaway Chairman, Warren Buffett.  Why were millions spent, when Buffett was clearly ‘tight’ with then President Barack Obama? Why spend millions lobbying for Preserving Access, when then President Obama said he’d veto it if it ever hit his desk?

 

WarrenBuffettBarackObamaWikipediaMotherJonesDailyBusinessNewsMHProNews

Buffett was a strong supporter of candidate and President Obama. Obama in turn was a strong support of Dodd-Frank, and not changing the CFPB. See related, linked below. http://www.mhpronews.com/blogs/daily-business-news/manufactured-housing-institute-vp-revealed-important-truths-on-mhis-lobbying-agenda/

 

Rephrased, instead of holding those two senior MHI leaders accountable for deception, Jennison and Gooch were defended and retained by the direct and specific intervention of Williams, Clayton Homes representative on the executive committee, and others who align with them.

The Daily Business News on MHProNews has noted more than once that Jennison and Gooch were given bonuses for their work, according the federal document filings by MHI and confirmed by MHI’s CEO Jennison. Again, MHI staff nor MHI Executive Committee leaders have not denied those bonus payments to Jennison, Gooch, or others.  You can access the report below by clicking on the hot-linked text-image box. 

 

Bonuses, Bonuses! Manufactured Housing Struggles During Affordable Housing Crisis, While Top MHI Staffers Get Bonuses

 

The letter reported by HousingWire and signed onto by MHI to FHFA Acting Director Joseph Otting, is arguably a double cross of the claims that MHI has been making even recently to the industry.  When MHI claims that they are acting to expand lending on manufactured housing, it is arguably demonstrably untrue.  See the “Illusion of Motion” further below. 

Without contradicting the source that sent the memo and tip above, the scenario that source describes is arguably far more corrupt than that DTS committee source alleges.

MHProNews will be asking for MHI, MHARR, and federal officials to react to this report now that it is published.

But equally important, this is the latest piece of evidence that seems to confirm what Marty Lavin, JD, former MHI member and award winner, previously said to MHProNews. Namely, that the so-called big boys get their way, and the rest of the industry only benefit from MHI when the big boy interests happen to align with independents.

   The manufactured home industry is struggling during an affordable housing crisis.

   There is mounting evidence that the Omaha-Knoxville metro powers have purportedly weaponized MHI and other operations in a manner that is contrary to the interests of the vast majority of other independent firms in the industry.

   DTS was clearly diverted to the “new class of homes” lending that MHI sources have told MHProNews was initiated by Clayton Homes. Leaders from MHI only member production firms have complained that this is an abuse of the industry’s most affordable housing, and that the ploy is aimed to benefit Clayton while harming others.

MHProNews will continue to unpeel the onion as more details emerge. See the related reports below, for more on Duty to Serve and finance related issues.

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“Waste, Fraud, and Abuse” – FHFA, GSE Federal Oversight Announcement

Update on Fannie Mae Lobbying, and Manufactured Housing Controversy

Duty To Serve, “Complete Waste of Time” per Tim Williams, CEO/21st Mortgage; POTUS Trump, Warren Buffett Insight$

MHI Lender Shakes Up DTS and MLO Rule Discussions

“Thou Shall Not Steal,” $2 Trillion Annually Lost to Lack of Affordable Homes, Making the Manufactured Home Case

Manufactured Housing Association for Regulatory Reform (MHARR) Pressing Fannie Mae, Freddie Mac to Fully Engage on Duty To Serve (DTS)

Chairman Hensarling, Fannie Mae’s Latest “Backdoor Schemes,” Illegalities? MH Connections, Implications

GSE Asked: Will Manufactured Housing Overtake Conventional Homebuilding?

 

21st Mortgage Suit’s CFPB Denial, Exclusive Document on Berkshire Hathaway Manufactured Housing Brands Investigation

February 14th, 2019 Comments off

21stMortgageSuitsCFPBDenailExclusiveDocumentBerkshireHathawayManfuacturedHousingBrandsInvestigationDailyBUsinessNewsMHProNews

Never underestimate the power of money in Washington, D. C., or in the districts and states that send legislators to Capitol Hill.

 

Legislators or other public officials can be influenced about matters that moneyed interests care about in a variety of ways, as an examination of the power of money over politicos becomes more evident in recent years. So, for that and a variety of other possible reasons, there are no guarantees that investigations opened will lead to a just outcome.

With those disclaimers, a formal communication from the Consumer Financial Protection Bureau (CFPB) to the publisher of MHProNews, discloses a document that is the first known official statement by a Berkshire Hathaway brand on the allegations of market rigging and monopolistic activities.

The CFPB provided a letter from a 21st Mortgage Corp. attorney – noting that lawyers can are also known by the slang terminology of ‘a suit’ – denied all allegations made against 21st.

That staff attorney for 21st Mortgage Corp is Jeff Warkins, JD, who has been asked to provide comments for specific questions related to allegations that can be accessed by the linked text/image below.

 

Bridging Gap$, Affordable Housing Solution Yields Higher Pay, More Wealth, But Corrupt, Rigged Billionaire’s Moat is Barrier

 

 

21st Attorney Denies Allegations, BUT…

The entire letter from Jeff Warkins, JD, to the CFPB is linked here as a download.  MHProNews’ publisher has responded to those denials to the CFPB, which may be the subject of an upcoming report.

 

JeffWarkinsStaffAttorneyLitigatino21stMortgageCorpLinkedInDailyBusinessNewsMHProNEws

Collage from Jeff Warkins’ LinkedIn page, with MHProNews’ third party media fair use notice.

 

That noted, let’s go to the meat of what Warkins’ said on behalf of his firm.

“…Please consider this 21 st Mortgage’s official response.

Tony Kovack is not a consumer of 21 st Mortgage under any plausible definition of the term and thus his use of the Consumer Complaint portal is misplaced. Aside from that, the most appropriate and accurate response is that we flatly reject all of his assertions. Additionally, we are not aware of any HUD or other regulator investigating the “claims” to which Kovack has alluded…”

 

It should be noted that Warkins correctly spelled our publisher’s last name earlier, but then misspelled it for the balance of the letter.  If he couldn’t get something as easy as the spelling consistently correct, what other mistakes might have been made?

But more important, the fact that Warkins says he is unaware of other investigations is odd, as it has been reported last year by the Seattle Times, local media in Knoxville, and of course here on MHProNews.

Here’s what Knoxville’s WBIR said on their video report page, “A federal spokesperson confirmed to 10News Monday that it’s looking into a “fair housing” complaint tied to the Maryville-based home builder.” Rephrased, Warkins’ is either uninformed, missed easily accessed facts, and/or was perhaps hoping to bluff the CFPB?


Notice that hundreds more have viewed this local news video linked above since MHProNews recently posted it.

 

Questions Posed to Jeff Warkins by MHProNews:

— Start of quotes from message to Jeff Warkins, JD @ 21st Mortgage —

 

Jeff Warkins, JD,

We will be doing a report and would value your photo.  Please advise either way. Thanks.

We’d also welcome any other comments from you and/or 21st on the allegations linked below, which are a key element of what the CFPB is asking about.

https://www.manufacturedhomelivingnews.com/bridging-gap-affordable-housing-solution-yields-higher-pay-more-wealth-but-corrupt-rigged-billionaires-moat-is-barrier/

More specifically, while your letter to CFPB correctly asserts that I’m not a customer, what you may or may not be aware of is that the State of NY AG’s office apparently referred the matter to the CFPB.

With that understood,

  1. do you deny that Tim Williams issued such a letter [As is linked here and above]?
  2. Do you deny that Warren Buffett’s annual letter has been accurately quoted?
  3. Do you deny what Kevin Clayton at Clayton Homes said on that video interview with Robert Miles?

 

Kindly clarify, confirm or comment on those points, and then please send your photo too. You are also welcome to comment or forward to an appropriate party on any of the issues noted further below.

Thank you.

Tony

L. A. ‘Tony’ Kovach

MHLivingNews.com | MHProNews.com | Office 863-213-4090 |

— end of quotes from message to Jeff Warkins, JD @ 21st Mortgage —

No reply to the above has been received from 21st as of the time of this post.  Later replies are welcomed from 21st, Clayton Homes, Berkshire Hathaway, and the Manufactured Housing Institute (MHI).

Wheels like sort of complaint may grind slowly, as now House Financial Services Committee chair Maxine Waters (CA-D) and other Democratic complaints which occurred in 2016 exemplify.  So, don’t misconstrue periods of silence on this issue.  Federal and other investigation fuses have been lit.

Other tips on this or other topic are welcome.

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See the related reports, below the byline, business development, email, and other notices.

More related details are found linked below the byline, business development opportunities, email offer, and other notices. That’s this afternoon’s manufactured home “Industry News, Tips, and Views Pros Can Use,” © where “We Provide, You Decide.” © ## (News, analysis, and commentary.)

 

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MHVille Exclusive – Democrats Senators Sign Anti-Competitive Practices Letter to DoJ, Plus MH Market Updates

News Tip, Document – Is Clayton Homes Engaged in False Down Payments? Deceptive Trade Practices?

Conquest Capitalism – Thoughts of Chairman Warren Buffett – Billionaires Campaign to Control Trillion Dollar Affordable Housing Market

CFPB and 21st, Second Shoe Drops? Flooring w/21st Mortgage Corp? Insider Tips

Warren Buffett’s Moat, Understanding Manufactured Housing Requires Grasping Strategic Economic Moats

 

God’s Sense of Humor, Tilting After Windmills, Manufactured Housing – Merchants or Crusaders?

HUD Code Manufactured Home Production Decline Persists – Time For Action Not Excuses

“The Illusion of Motion Versus Real-World Challenges”

MHARR Exposes GSES’ Failure On Chattel Financing Before Congress

“Restoring the Rule of Law To Manufactured Housing Regulation”

 

 

 

 

 

 

 

 

 

Can Close Reading of Facts Bring Left & Right Together for MHVille, Nation?

February 3rd, 2019 Comments off

 

BrightIdeaLightBulbSenatorElizabethWarrenPotusDonaldTrumpCloseReadingFactsBringLEftRightTogetherforMHVilleNation

Among the featured reports below is a surprising look at possible points of agreement between Senator Elizabeth Warren – a 2020 Democratic Presidential hopeful – and President Donald J. Trump (GOP).

 

If so, it’s arguably a big plus for our industry, consumers, and nation.  See that on What’s New on MHLivingNews.

There are several reports connected to Clayton Homes, 21st Mortgage, and a bold new effort alleged by numerous sources of Clayton trying to rig the marketplace.  Names are named, facts are cited.  Clayton has not yet denied it. It’s hot.

There is also developments on past and new issues regarding 21st, wholesale and other practices. See that report, further below.

There’s a new infographic packed report.  It spotlights at-a-glance housing data, including manufactured home insights.

Then there are exclusive insights on NPR, PBS, and the dark money behind them, which for whatever reasons periodically target manufactured housing.

On the Masthead is a look at why no one can truly understand the macro-picture of modern manufactured homes – including why we are still at historically low production levels – without understanding Warren Buffett’s concept of the strategic, economic moat.

There are new reports last week about Cavco, their controversy – and legal maneuvers – at play there.  There are surprisingly useful comments from George Soros, see that report too.

New reports from HUD Secretary Ben Carson and other HUD related issues are likewise linked below.

Fannie Mae and manufactured housing, political, economic, market news, and much more follow.

With no further adieu, here are the headlines from the week that was January 27, 2019 to February 3, 2019.

 

What’s New on MHLivingNews

mhlivingnews-improvedlivingforle-logo

Who Will Act? Will Senator Elizabeth Warren, and/or the Trump Administration Act to Restore Open Markets, Thereby Supporting Affordable Manufactured Homes?

 

What’s New on the Masthead

TheMastheadCommentaryLATonyKovachMHProNews

Warren Buffett’s Moat, Understanding Manufactured Housing Requires Grasping Strategic Economic Moats

 

 

What’s New on the Daily Business News on MHProNews

11DailyBusinessNewsMHProNewsLogos

Saturday 2.2.2019

·        New 2019 U.S. Housing Infographic with Manufactured Home Data Points

New 2019 U.S. Housing Infographic with Manufactured Home Data Points

Friday 2.1.2019

·        HUD Secretary Ben Carson Touts 2018 Accomplishments, Highlights

HUD Secretary Ben Carson Touts 2018 Accomplishments, Highlights

·        “Throwback,” BLS Reports New Records, Plus Manufactured Housing Market Update$

·        “Mobile Home Militia,” Retail/Production Sources, Sound Alarm Against Clayton Homes, CMH, New “Anti-Competitive Practices” Allegation

“Mobile Home Militia,” Retail/Production Sources, Sound Alarm Against Clayton Homes, CMH, New “Anti-Competitive Practices” Allegation

·        Latest New Residential Home Sales Data from HUD and U.S. Census Bureau

 

 

Thursday 1.31.2019

·        President Trump Considering Herman Cain for Fed, Manufactured Housing Stock Update$

·        CFPB and 21st, Second Shoe Drops? Flooring w/21st Mortgage Corp? Insider Tips

CFPB and 21st, Second Shoe Drops? Flooring w/21st Mortgage Corp? Insider Tips

·        Independent Clayton Retailers – Insiders, High Cost of Going Along to Get Along?

Independent Clayton Retailers – Insiders, High Cost of Going Along to Get Along?

·        Market Manipulation, What Does the Law Say?

Market Manipulation, What Does the Law Say?

 

Wednesday 1.30.2019

·        US Economy “in a Good Place” Fed Chair Jerome Powell, Stocks Soar, Manufactured Housing Stock Updates

·        Remember-Anything You, Richard ‘Dick’ Jennison, Kevin Clayton, Tim Williams, or Anyone Says Publicly at Louisville Show May Be Recorded by Audio, Video – Legal Details

·        NPR Targets Manufactured Home Communities, Including Sun, RV Horizons, Frank Rolfe, Buffett-Berkshire Hathaway Related Details

NPR Targets Manufactured Home Communities, Including Sun, RV Horizons, Frank Rolfe, Buffett-Berkshire Hathaway Related Details

·        Biggest Employers Video, Map By State, Where Clayton Homes Parent Berkshire Hathaway Ranks

 

Tuesday 1.29.2019

 

·        PBS & NPR Reporting on Manufactured Housing News, Pulling Back the Veil

PBS & NPR Reporting on Manufactured Housing News, Pulling Back the Veil

·        Howard Schultz, Potential Independent Presidential Candidate, Former Starbucks CEO, Blasts AOC, Senators Warren & Harris Plans, Plus MH Market Updates

·        Chinese PreFab Housing In U.S., Reasons George Soros’ Davos Remarks on China’s Threat Important to MHVille

Chinese PreFab Housing In U.S., Reasons George Soros’ Davos Remarks on China’s Threat Important to MHVille

·        Cavco Industries New Board Member, Susan L. Blount – Corporate, Manufactured Home Industry Insights on Pick, Timing

 

Monday 1.28.2019

 

·        White Paper on Digital Media, Details, Trends, Marketing Insights for Manufactured Housing

White Paper on Digital Media, Details, Trends, Marketing Insights for Manufactured Housing

·        Former Starbucks CEO Howard Schultz hires ex-Obama aide for Communications, Does Independent Run Hurt Dems or POTUS Trump More? Plus MH Market Updates

·        Cavco Industries (CVCO) Class Action Suit

Cavco Industries (CVCO) Class Action Suit

·        Positive, Uplifting Third-Party Reports Favor Modern Manufactured Housing, So What’s Going Wrong?

Positive, Uplifting Third-Party Reports Favor Modern Manufactured Housing, So What’s Going Wrong?

 

Sunday 1.27.2019

·        Bonuses, Bonuses! Manufactured Housing Struggles During Affordable Housing Crisis, While Top MHI Staffers Get Bonuses

Bonuses, Bonuses! Manufactured Housing Struggles During Affordable Housing Crisis, While Top MHI Staffers Get Bonuses

Let the facts inspire you to yearn for more. That’s MH “Industry News, Tips, and Views Pros Can Use,” © where “We Provide, You Decide.” © ## (News, analysis, and commentary.)

 

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New Association Weighs In, Giving Credit Where It’s Due, Opportunitie$, But Winds of Change Challenge Manufactured Housing’s Future

Manufactured Housing Institute Housing Alert, Affordable Housing Crisis, MHI’s #NettlesomeThings Response

“The Illusion of Motion Versus Real-World Challenges”

 

 

 

 

 

Metroplex Video Touts No Down Payment Loans on Manufactured Housing and Modular Homes

January 25th, 2019 Comments off

MetroplexMortgageSvcsVideoNoDownPaymentLoansManufacturedHousingModularHomesMHProNews

I recently discussed the differences between manufactured and modular homes along with the available mortgage options, but today we are going to be very specific and talk about how it can be possible to qualify for a manufactured home with a no down payment USDA loan,” said Sean Stephens, of Metroplex Mortgage Services.

 

The U.S. Department of Agriculture (USDA) handbook defines a manufactured home as follows:

Manufactured housing units are single-or multi-width units constructed partially off-site and then transported to a site to be completed and attached to a permanent foundation. Manufactured homes are built to different construction standards and codes and have different inspection requirements than those manufactured structures generally referred to as “modular” or “panelized” homes.”

Stephens noted that USDA loans for existing manufactured homes are “extremely limited” because the guidelines state that a “purchase of an existing manufactured home is not permitted, unless it is a purchase of an existing Rural Development Section 502 direct loan or guarantee” That means purchasing an existing manufactured home that is not part of any pilot program, and it must already be secured by either a USDA Guaranteed or Direct loan, which makes it a “rare scenario.”

 

SeanStephensMetroplexMortgageServicesUSDALoansVALoansDailyBusinessNewsMHProNews

 

For some years, there have been manufactured home retailers in certain markets that have gained experience at making sales with these loans, which when added to their other sales, have resulted in a total rise in new HUD Code home sales.  There is not much heard about this from the powers that be in MHVille, perhaps because it doesn’t put financing dollars into the coffers of Berkshire Hathaway owned lenders such as 21st Mortgage Corp or Vanderbilt Mortgage and Finance (VMF).

USDA loan and guidelines state the following about manufactured home loans.

Purchase of an eligible new unit, transportation and set-up costs, and purchase of an eligible site if not already owned by the applicant” provided the manufactured home has not been “installed, or occupied at any other site or location.”

Further, “the manufactured home must be classified and taxed as real estate” which translates to the home being on land that is owned because the USDA mortgage must cover both the manufactured home and land where it is located.

Manufactured units may be moved only from the manufacturers or dealer’s lot to the site on which the unit will be guaranteed. This type of unit is eligible as long as the purchase agreement is dated within 12 months of the date the unit was manufactured.”

  • The date of manufacture is available on the factory installed plate on the unit.”
  • Manufactured home units with a manufacture date exceeding 12 months of the purchase agreement contract will be ineligible for a guaranteed loan.”

Metroplex produced the video shown to promote the increased use of USDA loans for manufactured housing sales.

 

While today’s video was meant to give you a summary of this unique part of the program, it is important to remember that minimum credit and qualifying conditions will apply and that additional property conditions are required when you purchase a manufactured home with a no down payment USDA construction loan,” per the company. That’s MH “Industry News, Tips, and Views Pros Can Use” © where “We Provide, You Decide.” ## © (News, analysis, and commentary.)

 

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SoheylaKovachDailyBusinessNewsMHProNewsMHLivingNewsSubmitted by Soheyla Kovach to the Daily Business News for MHProNews.com. Soheyla is a managing member of LifeStyle Factory Homes, LLC, the parent company to MHProNews, and MHLivingNews.com.

 

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Sobering Federal Report on Manufactured Housing Lending – Retailers, Communities, Producers, and Finance Companies – Take Note

January 17th, 2019 Comments off

 

SobertingFederalReportOnManufacturedHOusingLendingRetailersCommunitiesProducersFinanceCompaniesTakeNoteBCFPDirectorKathleenLKraningerMHProNews

The rebranded Bureau of Consumer Financial Protection – formerly the CFPB, now the BCFP – has produced a January 2019 report that contains new data regarding manufactured housing lending.

 

There are over 200 pages. We’ll simplify that for busy readers.

MHProNews will hereby provide the entire document here as a download, while give readers like yourself the most relevant pull-quotes for manufactured housing.

After the quoted sections and tables, the Daily Business News on MHProNews will provide a brief and relevant analysis for manufactured home industry professionals, investors, affordable housing advocates, plus public elected or appointed officials.  The graphics are from the name of the report, that included the following quoted items.

 

BureauConsumerFinancialProtectionJan2019AbilityRepayQualifiedMortgageRulesAssessmentReportDailyBusinessNewsMHProNewsMessageFromKathleenLGrningerDirectorBureauConsumerFinancialProtectionAbilityToRepayQMReportDailyBusinessNewsMHProNews

 

7.2.1 Data and methods

Figure72CountyLevelMarketShareofSmallCreditorsin2014HMDABureauConsumerFinancialProtection

2014…

This analysis uses the non-public HMDA data described in Chapter 1.350 In the context of this chapter, any reference to “lender(s)” or “creditor(s)” only refers to HMDA reporting lenders. Estimates of small lenders in this analysis are not the complete universe of mortgage originators. The Bureau estimates that there are over 4,000 depository institutions which originate mortgages but are not HMDA reporters. Most, if not all, of HMDA non-reporters would qualify as small creditors due to their small size…

Figure73CountyLevelMarketShareofSmallCreditorsin2016HMDABureauConsumerFinancialProtection

…2016. Fewer lenders, ‘consolidation.’

Table 38 reports mortgage originations by small and non-small creditors in rural counties.366 Among small creditors, the share of total originations occurring in rural areas is much larger than for non-small creditors. This appears to be consistent with the higher likelihood that small creditors operate only or predominantly in rural or underserved areas compared to non-small creditors. The 2016a columns suggests that without the 2016 threshold amendments, the rural share of small creditor originations would have stayed the same instead of decreasing to 21…

—–

Foonote 366) The Bureau publishes a yearly list of rural and underserved counties that are exempt from certain regulatory r equ irements of the Truth in Lending A ct. Bureau of Con sumer Fin. Prot., Rural and Underserved Counties List, available at https://www.consumerfinance.gov /policy-compliance/guidance/implementation-guidance/rural-andu n derserved-counties-list/ (last v isited Dec. 31, 2018) (for the current and previous y ear’s lists).

EstimatedNumberHMDAReportingMOrtageLendersOriginationsRuralCountiesJan2019BCFPReportDailyBusinessNewsMHProNews

…percent in 2016 with the amendments. The 2016 amendments did however increase the share of small creditors operating in rural areas due to being more inclusive of larger lenders. The amendments in 20

Table 39 reports manufactured housing mortgage originations by small and non-small creditors. Manufactured housing loans make up a larger share of small lenders’ originations compared to non-small lenders. Similar to rural loan originations, these patterns are consistent with small creditors being more likely to provide access to mortgage credit for manufactured housing compared to larger creditors although the share or manufactured originations that make up a small creditor’s lending has been declining since 2012.

 

Table39EstimatedNumberHMDAReportingManufacturedHousingMortgageLendersBCFPJan2019

What Does This Reveal for MHPros, Policy Wonks, and Advocates?

Lenders in the manufactured housing space has declined during the period reported.

Put differently, manufactured lending has contracted, just as the number of retailers have shrunk.  Here is the key line.

“…small creditor’s lending has been declining since 2012.”

This has occurred in the aftermath of Warren Buffett led Berkshire Hathaway’s acquisition of Clayton Homes, other producers, retailers, and associated lenders, notably 21st Mortgage Corp and Vanderbilt Mortgage and Finance (VMF).

While making noise for several years about making the Duty to Serve by the Government Sponsored Enterprises (GSE) a reality, what the BCFP data reflects is that the opposite is taking place.

Manufactured housing professionals, investors, and advocates? This is another wake up call.  For more details, see the related reports, linked below the byline and notices.  That’s this afternoon’s Manufactured Housing “Industry News, Tips, and Views Pros Can Use,” © where “We Provide, You Decide.” © ## (News, analysis, and commentary.)

 

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SoheylaKovachDailyBusinessNewsMHProNewsMHLivingNewsSubmitted by Soheyla Kovach to the Daily Business News for MHProNews.com. Soheyla is a managing member of LifeStyle Factory Homes, LLC, the parent company to MHProNews, and MHLivingNews.com.

 

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FHA Call to Lenders on Workers, Contractors, re: Federal Government Shutdown

January 9th, 2019 Comments off

FHACallsLendersWorkersContractorsREFederalGovernmentShutdownDailyBusinessNewsMHProNews

Shutdown theater continues in Washington, D.C. So, yesterday afternoon, the U.S. Department of Housing and Urban Development’s Federal Housing Administration (FHA) requested that approved lenders consider the financial hardships caused by the partial federal shutdown.

 

That press release is below, including a letter linked from FHA’s Brian Montgomery.  After that there will be an infographic that manufactured home retailers, developers, and communities may find of interest.

 HUDNewsheaderManufacturedHousingIndsutryDailyBusinessNewsMHProNews

WASHINGTON – The Federal Housing Administration (FHA) today called on all approved mortgagees and lenders to be sensitive to the financial hardships experienced by borrowers as a result of the shutdown, including those borrowers subject to furlough, layoff, or a reduction in income related to the shutdown.   Read FHA Commissioner Brian Montgomery’s letter to lenders and approved mortgagees.

FHA-approved mortgagees and lenders are reminded of their ongoing obligation to offer special forbearance to borrowers experiencing loss of income.

FHA expects all approved mortgagees and lenders to make every effort to communicate with and assist affected borrowers to the greatest extent possible by:

  • extending special forbearance plans to borrowers impacted by the shutdown, and
  • fully evaluating borrowers for available loss mitigation options to avoid foreclosure whenever possible.

“In accordance with longstanding policy, FHA expects mortgagees to assist borrowers experiencing a loss of income,” said FHA Commissioner Brian Montgomery in a letter to FHA-approved lenders and mortgagees.

FHA is also strongly encouraging all approved mortgagees and lenders to waive late fees for affected borrowers and to suspend credit reporting on borrowers nationwide who have been affected by the shutdown.

 

###

 

HUD’s mission is to create strong, sustainable, inclusive communities and quality affordable homes for all.

FHALoanInfographic2019LendersNetworkManufacturedHousingIndustryDailyBusinessNewsMHProNews

Here above is the promised infographic, and some 2019 FHA lending guidelines.  Turn to an FHA lender approved for manufactured home lending for additional details.

That’s this morning’s “News through the lens of manufactured homes, and factory-built housing,” © where “We Provide, You Decide.” © ## (News, analysis, and commentary.)

 

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ManufacturedHomeIndustry#1HeadlineNewsMHProNews

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3) Marketing, Web, Video, Consulting, Recruiting and Training Re-sources

SoheylaKovachDailyBusinessNewsMHProNewsMHLivingNewsSubmitted by Soheyla Kovach to the Daily Business News for MHProNews.com. Soheyla is a managing member of LifeStyle Factory Homes, LLC, the parent company to MHProNews, and MHLivingNews.com.

 

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