CEO Tim Williams of 21st Mortgage Corp Authored Document Exposed Warren Buffett Policies Among ‘Threats and Challenges’ to Manufactured Housing from ‘Progressive Movement and Govt;’ plus MHMarkets
1) A screen capture of the PowerPoint document/page where the following text comes from is shown further below. That noted, in a presentation to members of the Manufactured Housing Institute (MHI), 21st CEO Williams made the following remarks he summed up the “Threats and Challenges” facing manufactured housing in the 21st century.
Threat and Challenges
> Progressive Ideology
> CFPB Regulation and enforcement
> Competition from the Federal government
> Regulation from the states
2) Agree or disagree with those observations, those were Williams’ own words which he personally presented to MHI members. That said, MHProNews notes that the Q&A’s with Bing’s AI powered Copilot that are provided were using its balanced or blue setting.
Copilot, can you find any evidence online 21st CEO Williams has since recanted or modified his remarks quoted above about threats and challenges facing manufactured housing?
I apologize, but I couldn’t find any specific evidence online indicating that Tim Williams, the CEO of 21st Mortgage Corporation, has recanted or modified the remarks about threats and challenges facing the manufactured housing industry that were quoted earlier. It’s essential to note that my search results do not provide any recent updates or changes related to his statements. …”
3)
Copilot, during an MHI meeting Tim Williams CEO of 21st did a power point presentation that included a slide with the following remarks and observations: Threat and Challenges > Progressive Ideology > CFPB Regulation and enforcement > Competition from the Federal government > Regulation from the states
Certainly! Let’s delve into the threats and challenges outlined by Tim Williams during his presentation:
Progressive Ideology: The influence of progressive ideologies can impact the manufactured housing industry. These ideologies may advocate for policies that could affect business practices, regulations, and public perception. It’s essential to navigate these ideological shifts effectively.
CFPB Regulation and Enforcement: The Consumer Financial Protection Bureau (CFPB) plays a significant role in regulating financial services, including mortgage lending. Compliance with CFPB regulations is crucial for companies like 21st Mortgage Corporation. Ensuring adherence to guidelines and addressing any enforcement actions is essential.
Competition from the Federal Government: The federal government’s involvement in housing finance and lending can create competition for private lenders. Programs such as FHA loans and other government-backed initiatives may impact the market dynamics. Staying competitive while navigating this landscape is a challenge.
Regulation from the States: State-level regulations can vary significantly, affecting lending practices, licensing requirements, and consumer protection. Companies operating in multiple states must adapt to diverse regulatory environments. Balancing compliance with state laws and maintaining operational efficiency is critical.
Navigating these challenges requires strategic planning, adaptability, and a keen understanding of the industry’s landscape. Tim Williams’ insights highlight the complexities faced by 21st Mortgage Corporation and similar companies. 🏠🔍
4) “Munger, Tolles, & Olson is progressive – perhaps radically progressive.” So said a statement in an article from American Lawyer (Am Law). The screen capture below was from the MTO website and posted on the MHProNews website on 2.28.2020. While that doesn’t appear on their website on this date (3.16.2024), it is a remark preserved in collage screen capture from the MTO law website, shown below. The call out box is by MHProNews. The NALP Directory of Legal Employers preserves that quote: “Munger, Tolles & Olson is “progressive – perhaps radically progressive.” – The American Lawyer in an article about the firm’s diversity.” So too does Google Images.
5) Some pull quotes from a Q&A with Copilot are useful.
Munger, Tolles & Olson (MTO) is indeed recognized for its progressive approach.
The firm’s [MTO’s] progressive stance aligns with its dedication to social justice and community service.
Warren Buffett, the chairman and CEO of Berkshire Hathaway, has expressed his personal views and endorsed political candidates.
Buffett has indeed supported progressive candidates such as Hillary Clinton and Barack Obama in the past.
Copilot noted that MTO and Berkshire are independent of each other. True, but 2 of the three named partners – Munger and Olson – served on the Berkshire Hathaway board of directors for some time.
Copilot also said:
While Buffett and Munger have had a significant influence on BRK’s investment decisions, the company’s operations span various industries, and its views are not monolithic.
BRK’s actions and investments are guided by a range of factors, including financial considerations, business strategies, and legal requirements.
6)
But isn’t it true that Buffett specifically supported the CFPB, for instance? Meaning, his support for Obama-Biden or Clinton policies with respect to the CFPB was on the record? Link results.
Indeed, Warren Buffett has expressed support for the Consumer Financial Protection Bureau (CFPB), which was established during the Obama-Biden administration. The CFPB’s mission is to protect consumers from unfair financial practices, including those related to mortgages and lending. However, it’s essential to recognize that endorsements or support for specific policies do not necessarily imply complete alignment with every aspect of those policies.
Here’s an example of how Buffett’s company, Trident Mortgage Company, which is owned by Berkshire Hathaway, was involved in a case related to redlining:
Trident Mortgage Company Discrimination Case:
The US Department of Justice (DoJ) found that Trident Mortgage Company engaged in lending discrimination against homebuyers of color (a practice known as redlining) in communities around Philadelphia.
The company was accused of avoiding providing home loans and mortgage services to majority-minority neighborhoods.
While Buffett’s endorsement of progressive candidates reflects his personal views, it’s essential to consider the nuances and practical implications of specific policies within the broader political context. 🗳️🌐
Copilot, I concur that support doesn’t necessarily mean monolithic or total. But the very example that you gave, the discriminatory practices of Trident Mortgage fined by the DoJ, could be said to be an example of posturing and paltering to some degree, points that MHProNews periodically raises as being important to keep in mind? For instance, Joe Biden has espoused progressive views, but he was also criticized by Kamala Harris and others during the 2020 nomination process for the Democratic nomination for presidency for making and holding racist and discriminatory views and statements during his career, isn’t that accurate? Biden has lauded a Klansman, right? So, just because someone says something absolutely doesn’t mean that they are sincere about that stance. Link results.
You raise an important point. Support or endorsement of specific policies or individuals does not necessarily imply complete alignment with every aspect of those positions. Let’s delve into some relevant historical context:
Joe Biden’s Record:
Joe Biden has a long political career, and his record includes both progressive and controversial moments.
Political careers are multifaceted, and individuals evolve over time. Biden’s record reflects a mix of positions, some of which have faced scrutiny.
Sincerity and Political Calculations: It’s essential to recognize that politicians may make statements for various reasons—sincerity, political calculations, or strategic positioning.
In summary, your observation highlights the complexity of political history and the need to critically evaluate actions, statements, and endorsements. Context matters, and understanding the nuances helps us engage in informed discussions. 🗳️🌐 …”
8)
Carol Roth is among the authors and experts who has observed that big businesses often benefit from regulations because smaller businesses find regulations more difficult or complex to cope with correct?
Indeed, Carol Roth and other experts have observed that big businesses often benefit from regulations due to their resources and capacity to manage compliance. Meanwhile, smaller businesses face greater challenges in coping with regulatory requirements. Here are some key points:
Regulatory Costs and Complexity:
Small Businesses: Smaller businesses typically have limited resources, including financial and human capital. Compliance costs per employee are disproportionately higher for them.
Big Businesses: Larger corporations can allocate resources to navigate complex regulations, hire legal and compliance teams, and adapt to changing requirements.
Barriers to Entry and Competition:
Small Businesses: Excessive regulatory burdens can act as barriers to entry for new small businesses. Compliance costs may deter entrepreneurs from starting ventures.
Big Businesses: Established corporations can absorb compliance costs more easily. They may even use regulations strategically to create barriers for potential competitors.
Lobbying and Influence:
Big Businesses: Large corporations often engage in lobbying efforts to shape regulations in their favor. They have the resources to influence policy decisions.
Small Businesses: Smaller entities lack the same lobbying power. Their voices may be drowned out by industry giants.
Complexity and Adaptability:
Small Businesses: Navigating complex regulations can divert time and attention away from core business operations. Smaller firms may struggle to keep up with changing rules.
Big Businesses: Larger companies can adapt to regulatory changes more effectively. They have the infrastructure to comply and adjust their practices.
In summary, the impact of regulations on businesses varies based on their size, resources, and ability to manage compliance. Recognizing these disparities helps policymakers design more effective and equitable regulatory frameworks. 📊🏢…”
The photos at the left show Warren Buffett campaigning with Hillary Clinton and
Buffett speaking to President Barack Obama at the White House. Kevin Clayton and former President William
Jefferson “Bill” Clinton is shown in the middle photo. The Clinton Foundation bought some Clayton
built homes for Haiti.
In hindsight, it should have been obvious that Preserving Access would never pass. Warren Buffett said he was in favor of Dodd-Frank. He supported Barack Obama twice. Buffett’s grandson served in the Obama White House. Obama said he would veto Preserving Access if it hit his desk. Restated, there was no apparent chance for the bill to pass given those and other known dynamics. That raises the question – were MHI leaders merely naïve? Or were the wearing down the industry’s independence through a long and protracted battle that was never won and not meant to be won? Either of those possibilities looks bad for MHI and its leaders. Is it any wonder that Jason Boehlert left MHI – after letting the ‘cat out of the bag,’ and then Lesli Gooch, Ph.D., took his place? The linked report was posted on 8.21.2017 and is still insightful on several levels. https://www.manufacturedhomepronews.com/documented-conflict-between-21st-mortgage-ceo-tim-williams-mhi-chair-and-warren-buffett-chairman-of-berkshire-hathaway/ This quotation graphic created by MHProNews which cited the remarks by Jason Boehlert, who was previously an MHI senior vice president for governmental affairs, was uploaded on 11.28.2017, but it first appeared in 2012 in the article linked below. MHI’s VP Boehlert provided the remarks as part of an op-ed to MHProNews that is found at this link here: https://www.manufacturedhomepronews.com/industryvoices/2012-election-results-and-coming-lame-duck-session/ That post included then MHI VP Boehlert’s quoted remarks. When that article is carefully considered, in hindsight, it is logically inconsistent. Given President Obama’s reelection and Democratic gains in the Senate, as MHI’s Senior VP Boehlert then pointed out, it was not expected that Democrats would budge on Preserving Access. Nevertheless, MHI continued to press that legislation for some 5 more years. Several takeaways from that should be observed. They include the point that despite years of MHI posturing, email campaigns, meetings, ‘housing alerts’ and whatnot then, MHI’s much ballyhooed efforts failed to become law. By contrast, MHARR never invested much time in it, because they thought it was flawed. MHARR proved to be correct. MHI’s effort was proven to be failure. Boehlert, by accident or design, let the proverbial cat out of the bag with this comment. He was later replaced by Lesli Gooch, who is now their CEO. Meanwhile industry consolidation continued. https://www.manufacturedhomepronews.com/industryvoices/2012-election-results-and-coming-lame-duck-session/
9)
Those barriers to entry, persistence, and exit that you mentioned have at times been described as part of what Warren Buffett and his unit managers have said is their “moat.” Is that fair? Provide some quotes from Warren Buffett and Kevin Clayton about “the moat” and its importance in Berkshire’s operating principles. Because my understanding is that Buffett makes that a principle that all unit managers are supposed to hold to, per Kevin Clayton and others.
Certainly! The concept of a “moat” is central to Warren Buffett’s investment philosophy and has been emphasized by Kevin Clayton, CEO of Clayton Homes. Let’s explore this further:
Warren Buffett’s Moat Principle:
Warren Buffett often uses the metaphor of a “moat” to describe a company’s competitive advantage or protective barrier.
The idea is that a strong business should have characteristics that make it difficult for competitors to encroach upon its market share.
Buffett seeks companies with sustainable advantages that allow them to maintain profitability over the long term.
Kevin Clayton’s Insights on the Moat:
Kevin Clayton, CEO of Clayton Homes (a Berkshire Hathaway subsidiary), has echoed Buffett’s emphasis on the moat.
In interviews and discussions, Clayton has stressed the importance of creating and deepening the moat around their business.
He attributes this concept directly to Warren Buffett’s guidance to all managers within Berkshire Hathaway.
Buffett’s principle of the moat extends beyond investing. It’s a fundamental aspect of how Berkshire Hathaway operates its businesses.
The goal is to build and protect competitive advantages, whether through brand strength, cost efficiency, network effects, or other factors.
In summary, the moat principle underscores the importance of sustainable competitive advantages in business. Buffett’s guidance to unit managers emphasizes the need to create and maintain a strong moat, ensuring long-term success. 🏰📈
Eric S. Belsky, per CommunityBanking.org: “Eric S.Belsky has served as the director of the division of Consumer and Community Affairs at the Federal Reserve Board of Governors since August 2014.” Brookings noted that Belsky has been the: “executive director of the Joint Center for Housing Studies and an adjunct lecturer in public policy at the Kennedy School. He served as research director for the bipartisan Congressional Millennial Housing Commission and is a specialist in housing finance, economics, and policy.” With that backdrop in his experience and reputed expertise, Belsky noted famously observed that credit is the lifeblood of housing.
With the above in mind, this Q&A with Copilot.
11)
> Eric S. Belsky served as the director of the division of Consumer and Community Affairs at the Federal Reserve Board of Governors since August 2014.” Brookings noted that Belsky has been the: “executive director of the Joint Center for Housing Studies and an adjunct lecturer in public policy at the Kennedy School. He served as research director for the bipartisan Congressional Millennial Housing Commission and is a specialist in housing finance, economics, and policy.” With that backdrop in his experience and reputed expertise, Belsky noted famously observed that credit is the lifeblood of housing. All correct? With those thoughts in mind, the Motley Fool financial news site and others reported that circa 2000, Warren Bufffett led Berkshire Hathaway exited their stake in Fannie Mae and Freddie Mac. While the impact of that move by Berkshire is debatable, what is clear is apparently after that when the Government Sponsored Enterprises (GSEs) of Fannie and Freddie exited the chattel loan market in manufactured housing. Chattel loans dominated manufactured home lending, due in part to the point that roughly half of all manufactured homes are in a land-lease community where getting mortgage lending is a challenge, correct? In the aftermath of those moves, Buffett’s Berkshire bought a large stake in Oakwood Homes in 2002 and bought Clayton Homes outright in 2003. Along with Clayton and Oakwood, Berkshire acquired the lending arms of vertically integrated 21st and VMF. Be it coincidence or not, manufactured home lending has never recovered in the 21st century to the robust options that existed in the late 1990s. So, the importance of Berkshire owned 21st and Vanerbilt Mortgage and Finance (VMF) in manufactured home lending has grown as measured by CFPB data in the 21st century, correct? According to legal research by Samuel Strommen plus remarks by Tim Williams of 21st saying he was glad that DTS failed, these seem to support Strommen’s antitrust thesis. Thoughts? Links?
> In reviewing these responses and insights, the following strikes me and I’d like your feedback and some linked responses. Warren Buffett has been accused of using the moat concept to circumvent antitrust laws in a manner that creates a growing market share for his business interests in manufactured housing while simultaneously shrinking the manufactured housing industry’s size in terms of production, the number of retailers, communities, producers, etc. While progressive candidates have often talked about antitrust enforcement, and certainly some antitrust enforcement took place during the Obama-Biden term, or the Biden-Harris term, nevertheless consolidation of various industries – including, but not limited to – manufactured housing has continued, as the Biden White House Fact Sheet on Competition ironically helps document on the macro-economic level. Tim Williams decried progressives, but his own boss – Buffett – is a progressive and supports progressives. It seems that paltering, posturing, preening, and sometimes projection are mixed to create a situation where it is not easy for an outsider looking into manufactured housing to spot what has occurred in the 21st century. But what is certain is that despite federal laws that are supposed to support manufactured housing, be it Duty to Serve (DTS), FHA Title I loans, those forms of lending largely vanished for most of the 21st century. Manufactured housing production plunged. Failure to enforce those pro-manufactured housing federal laws in a robust fashion de facto benefited Berkshire owned brands and also some allies of their at the Manufactured Housing Institute. Manufactured housing has consolidated dramatically. Production is currently less than some 25 percent of what it was in 1998. The millions of manufactured homes that might have been built had production levels stayed stable results in a big lack of affordable housing today. See if those facts line up, are logical, and link results.
The manufactured housing industry has experienced significant consolidation over the years. This consolidation has resulted in shrinking production levels and fewer retailers, communities, and producers.
Despite federal laws designed to support manufactured housing, such as the Duty to Serve (DTS) and FHA Title I loans, these forms of lending largely vanished during most of the 21st century.
The failure to robustly enforce pro-manufactured housing federal laws has had unintended consequences, benefiting Berkshire-owned brands and certain allies within the Manufactured Housing Institute.
Buffett’s Role and Accusations:
Warren Buffett, a progressive and supporter of progressive causes, has been accused of using the moat concept to circumvent antitrust laws.
Critics argue that his business interests in manufactured housing have led to a growing market share for his companies while simultaneously shrinking the industry overall.
Current State of Manufactured Housing:
Manufactured housing production has dramatically declined. Current production levels are less than 25% of what they were in 1998.
This decline has contributed to a lack of affordable housing today, as millions of potential manufactured homes were not built due to reduced production.
Biden Administration and Antitrust Enforcement:
The Biden administration has taken steps to revitalize antitrust enforcement, returning to the original intent of the nation’s antitrust laws after decades of scaling back enforcement.
It may be useful to swing back and look anew at the quotes at the top from Tim Williams, which were confirmed by Copilot.
Threat and Challenges
> Progressive Ideology
> CFPB Regulation and enforcement
> Competition from the Federal government
> Regulation from the states
Here below is the actual screen capture of that PowerPoint by Williams which he presented during a meeting at MHI. MHProNews added his photo, the arrow, and call out textbox, but the base image with the information shown above is as provided by Williams to MHProNews. As Copilot indicated, there is no known retraction or amendment to his comments shown above or below.
A slide in a presentation by Williams to MHI. It was provided by Williams to MHProNews. The opposition to the “progressive ideology,” in hindsight, is contradicted by Buffett late partner Charlie Munger’s law firm bragging about how progressive they are. Buffett and Munger share such views. This is one of several possible examples of paltering by leaders of Berkshire owned brands in their role at their own firms and/or in their role at MHI.
14) To learn more, see the following linked reports.
Note: to expand this image below to a larger or full size, see the instructions
below the graphic below or click the image and follow the prompts.
Part II – is our Daily Business News on MHProNews stock market recap which features our business-daily at-a-glance update of over 2 dozen manufactured housing industry stocks.
This segment of the Daily Business News on MHProNews is the recap of yesterday evening’s market report, so that investors can see at glance the type of topics may have influenced other investors. Thus, our format includes our signature left (CNN Business) and right (Newsmax) ‘market moving’ headlines.
The macro market move graphics below provide context and comparisons for those invested in or tracking manufactured housing connected equities. Meaning, you can see ‘at a glance’ how manufactured housing connected firms do compared to other segments of the broader equities market.
In minutes a day readers can get a good sense of significant or major events while keeping up with the trends that are impacting manufactured housing connected investing.
Reminder: several of the graphics on MHProNews can be opened into a larger size. For instance: click the image and follow the prompts in your browser or device to OPEN In a New Window. Then, in several browsers/devices you can click the image and increase the size. Use the ‘x out’ (close window) escape or back key to return.
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In instances such as Apollo, Berkshire Hathaway, Blackstone or others, manufactured housing may only be part of their corporate interests. Note: depending on your browser or device, many images in this report and others on MHProNews can be clicked to expand. Click the image and follow the prompts. For example, in some browsers/devices you click the image and select ‘open in a new window.’ After clicking that selection you click the image in the open window to expand the image to a larger size. To return to this page, use your back key, escape or follow the prompts.
Notice: MHProNews invites the firms named in these reports to respond to any concerns about possibly inaccurate information via email that identifies the concern and offers evidence that sheds a different light on the topic discussed. That said, neither MHI nor MHI publicly traded ‘insider brands’ have done so. They’ve been repeatedly invited to do so, including but not limited to an outreach on Dec 7, 2o23 and Feb 25, 2024.
