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

June 25th, 2019 Comments off

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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. 

 

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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?

 

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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.

 

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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.

 

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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.

 

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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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Submitted 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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Submit confidential or on-the-record news tips, or comments at this linked email mailto:iReportMHNewsTips@mhmsm.com. Put the phrase “News Tips” or “Comments” in the subject line to help us spot yours in our volume of emails, thank you.

Related Reports:

You can click on the image/text boxes to learn more about that topic.

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

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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