The U.S. Department of Housing and Urban Development (HUD) and the U.S. Census Bureau issued a joint news release to media including MHProNews dated 7.26.2023.  Their joint release indicated that far more costly conventional housing – despite the headwinds of higher interest rates since the Federal Reserve began its rate hikes in March 2022 (per MReports) – has risen year over year (YoY) in June 2023 vs. June 2022 by some 23.8 percent. As MHProNews previously reported, per the Manufactured Housing Association for Regulatory Reform (MHARR) in “May 2023, a 28.1% decline from the 10,451 new HUD Code homes produced in May 2022.” June 2023 data for HUD Code manufactured housing should be available later next week. But whatever that updated data may reveal, MHARR said that for May 2023 “Cumulative production for 2023 is now 35,719 homes, a 33.8% decrease from the 50,286 homes produced over the same period during 2022.”

So, while far more costly conventional housing has been recovering despite mortgage rate hikes, by contrast, manufactured housing has been in a steady decline this year.  More on that in Part II, which will include the latest state by state data for manufactured housing production. Part III of this article will include a focused analysis and commentary. Part IV will feature a manufactured housing connected equities and broader market updates.  Part I has the essential elements of the HUD-Census bureau press release.

Part I

July 26, 2023

HUD and Census Bureau Report New Residential Sales in June 2023

WASHINGTON – The U.S. Department of Housing and Urban Development (HUD) and the U.S. Census Bureau jointly announced the following new residential sales statistics for June 2023:

New Home Sales

Sales of new single‐family houses in June 2023 were at a seasonally adjusted annual rate of 697,000, according to estimates released jointly today by the U.S. Census Bureau and the Department of Housing and Urban Development. This is 2.5 percent (±12.7 percent)* below the revised May rate of 715,000, but is 23.8 percent (±22.5 percent) above the June 2022 estimate of 563,000.

Sales Price

The median sales price of new houses sold in June 2023 was $415,400. The average sales price was $494,700.

For Sale Inventory and Months’ Supply

The seasonally‐adjusted estimate of new houses for sale at the end of June was 432,000. This represents a supply of 7.4 months at the current sales rate.

The July report is scheduled for release on August 23, 2023. View the full schedule in the Economic Briefing Room: www.censusbureau/ecomomicindicators. The full text and tables for this release can be found at www.census.gov/construction/nrs/

EXPLANATORY NOTES

These statistics are estimated from sample surveys. They are subject to sampling variability as well as non-sampling error including bias and variance from response, nonreporting, and under coverage. Estimated average relative standard errors of the preliminary data are shown in the tables. Whenever a statement such as “2.5 percent (±3.2%) above” appears in the text, this indicates the range (‐0.7 to +5.7 percent) in which the actual percent change is likely to have occurred. All ranges given for percent changes are 90‐percent confidence intervals and account only for sampling variability. If a range does not contain zero, the change is statistically significant. If it does contain zero, the change is not statistically significant; that is, it is uncertain whether there was an increase or decrease. The same policies apply to the confidence intervals for percent changes shown in the tables. Changes in seasonally adjusted statistics often show irregular movement. It takes 3 months to establish a trend for new houses sold. Preliminary

new home sales figures are subject to revision due to the survey methodology and definitions used. The survey is primarily based on a sample of houses selected from building permits. Since a “sale” is defined as a deposit taken or sales agreement signed, this can occur prior to a permit being issued. An estimate of these prior sales is included in the sales figure. On average, the preliminary seasonally adjusted estimate of total sales is revised about 4.2 percent. Changes in sales price data reflect changes in the distribution of houses by region, size, etc., as well as changes in the prices of houses with identical characteristics. Explanations of confidence intervals and sampling variability can be found on the Census Website.

* The 90 percent confidence interval includes zero. In such cases, there is insufficient statistical evidence to conclude that the actual change is different from zero.

###

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

Part II – May 2023 State-By-State Data per HUD’s contractor Institute for Building Technology & Safety‎ (IBTS).

Notes: SW means a single section HUD Code manufactured home or a “single wide.” MW means multi-sectionals, which includes ‘double wide or triple wide” or rarer still, quadruple wide.

Institute for Building Technology & Safety‎

Shipments and Production Summary Report 05/01/2023 – 05/31/2023

Shipments
State	SW	MW	Total	Floors
Dest. Pending	10	12	22	34
Alabama	223	184	407	591
Alaska	0	0	0	0
Arizona	93	121	214	338
Arkansas	74	62	136	198
California	58	202	260	466
Colorado	48	12	60	72
Connecticut	22	3	25	28
Delaware	8	21	29	50
District of Columbia	0	0	0	0
Florida	144	443	587	1,036
Georgia	139	190	329	519
Hawaii	0	0	0	0
Idaho	6	24	30	54
Illinois	61	31	92	123
Indiana	109	38	147	185
Iowa	36	14	50	64
Kansas	35	13	48	61
Kentucky	90	171	261	432
Louisiana	199	113	312	427
Maine	43	48	91	139
Maryland	2	4	6	10
Massachusetts	8	9	17	26
Michigan	213	137	350	487
Minnesota	46	34	80	114
Mississippi	135	139	274	413
Missouri	60	56	116	173
Montana	13	22	35	58
Nebraska	21	6	27	33
Nevada	7	30	37	72
New Hampshire	22	17	39	56
New Jersey	20	11	31	42
New Mexico	51	75	126	203
New York	71	86	157	243
North Carolina	212	260	472	732
North Dakota	6	15	21	36
Ohio	122	44	166	210
Oklahoma	92	117	209	326
Oregon	27	78	105	188
Pennsylvania	66	73	139	211
Rhode Island	4	0	4	4
South Carolina	148	217	365	582
South Dakota	11	10	21	31
Tennessee	87	176	263	440
Texas	607	741	1,348	2,093
Utah	9	10	19	29
Vermont	2	9	11	20
Virginia	48	42	90	132
Washington	13	93	106	205
West Virginia	15	48	63	112
Wisconsin	32	18	50	68
Wyoming	13	9	22	31
Canada	0	0	0	0
Puerto Rico	0	0	0	0
Total	3,581	4,288	7,869	12,197
THE ABOVE STATISTICS ARE PROVIDED AS A MONTHLY
SUBSCRIPTION SERVICE. REPRODUCTION IN PART OR
IN TOTAL MUST CARRY AN ATTRIBUTION TO IBTS, INC.

Production
State	SW	MW	Total	Floors
States Shown(*)	245	247	492	741
Alabama	522	660	1,182	1,844
*Alaska	0	0	0	0
Arizona	89	146	235	385
*Arkansas	0	0	0	0
California	54	179	233	416
*Colorado	0	0	0	0
*Connecticut	0	0	0	0
*Delaware	0	0	0	0
*District of Columbia	0	0	0	0
Florida	51	245	296	545
Georgia	175	299	474	775
*Hawaii	0	0	0	0
Idaho	22	65	87	159
*Illinois	0	0	0	0
Indiana	509	211	720	932
*Iowa	0	0	0	0
*Kansas	0	0	0	0
*Kentucky	0	0	0	0
*Louisiana	0	0	0	0
*Maine	0	0	0	0
*Maryland	0	0	0	0
*Massachusetts	0	0	0	0
*Michigan	0	0	0	0
Minnesota	27	60	87	147
*Mississippi	0	0	0	0
*Missouri	0	0	0	0
*Montana	0	0	0	0
*Nebraska	0	0	0	0
*Nevada	0	0	0	0
*New Hampshire	0	0	0	0
*New Jersey	0	0	0	0
*New Mexico	0	0	0	0
*New York	0	0	0	0
North Carolina	173	242	415	657
*North Dakota	0	0	0	0
*Ohio	0	0	0	0
*Oklahoma	0	0	0	0
Oregon	52	172	224	405
Pennsylvania	238	274	512	785
*Rhode Island	0	0	0	0
*South Carolina	0	0	0	0
*South Dakota	0	0	0	0
Tennessee	527	650	1,177	1,829
Texas	897	838	1,735	2,577
*Utah	0	0	0	0
*Vermont	0	0	0	0
*Virginia	0	0	0	0
*Washington	0	0	0	0
*West Virginia	0	0	0	0
*Wisconsin	0	0	0	0
*Wyoming	0	0	0	0
*Canada	0	0	0	0
*Puerto Rico	0	0	0	0
Total	3,581	4,288	7,869	12,197
(*) THESE STATES HAVE FEWER THAN THREE PLANTS.
FIGURES ARE AGGREGATED ON FIRST LINE ABOVE
TOTALS TO PROTECT PROPRIETARY INFORMATION.
Ashok K Goswami, PE, COO, 45207 Research Place,  Ashburn, VA

 

Part III – Take a Fresh Look – More Facts and Analysis by MHProNews 

A Fresh Look. Stating the obvious can prove to be tremendously insightful and liberating. Facts and evidence, coupled with understanding, can lead to breakthroughs in a variety of areas of living. Stating the obvious:

• 1) Opportunities are routinely lurking behind obstacles.
• 2) Once obstacles are properly understood, the solutions often come into focus.
• 3) Once solutions are grasped, calculations can be made as to what is required for companies to navigate the obstacles in a profitable fashion.
• 4) Action plans capable of achieving a success outcome can be forged by these elements.

That said, a challenging tendency for most modern Americans is arguably the temptation to skim or skip material when they think they know what comes next. Be a person right or wrong in such a presumption, skipping or skimming words or images that appear familiar can arguably shortcut the opportunity for an “Aha!” moment to occur.

Looking at seemingly familiar information with ‘fresh eyes’ can lead to breakthrough ideas and/or other profitable actions.

Digging deeper, slogans and mottos may mask and/or reveal reality, if and when they are properly and objectively understood. Tendencies like ‘confirmation bias’ have to be overcome. Patience is required to find the gems hidden in data and remarks. Agree with the application of Warren Buffett’s methods or not, what he is quite right about is that reading is fundamental to understanding. Buffett said his most important habit is reading. Buffett says he spends 5 to 6 hours daily just reading. Reading is about 80 percent of Buffett’s workday.

For an example. “Forget what they told you. You want the truth, follow the money.” – Roxanne Bland, attorney and author.  Apply Bland’s maxim to what follows.

Whatever HUD’s Mission statement may be (i.e.: “HUD’s mission is to create strong, sustainable, inclusive communities and quality affordable homes for all.”) the sobering reality is found in a stunning remark by HUD PD&R researchers on September 7, 2021 published on HUD’s own website.

On 9.7.2021, Pamela Blumenthal and Regina Gray said in part that: “Federally sponsored commissions, task forces, and councils under both Democratic and Republican administrations have examined the effects of land use regulations on affordable housing for more than 50 years. Numerous studies find land use regulations that limit the number of new units that can be built or impose significant costs on development through fees and long approval processes drive up housing costs. Research indicates higher housing costs also drive up program costs for federal assistance, reducing the funds available to serve additional households.” So, for more than 50 years, HUD has known the causes of the affordable housing crisis. Since a widely bipartisan Congress enacted reforms in the Manufactured Housing Improvement Act (MHIA) of 2000 signed into law by then President William Jefferson “Bill” Clinton (D), included the language descripted by attorneys and others as “enhanced preemption” gave HUD the authority to override local jurisdictions that erected zoning barriers.

Put differently, Congress gave HUD the tools to overcome the zoning barriers that Blumenthal and Gray say have stymied affordable housing for over 50 years.

Set aside for a few moments the concerns about why HUD isn’t using the tools that Congress gave them as illustrated by this snipped from Democratic lawmakers who were part of the coalition that enacted the MHIA and its so-called “enhanced preemption” authority in a letter to then HUD Secretary Mel Martinez (R).

 

 

So, HUD leadership was reminded about three years after enactment that the MHIA’s “enhanced preemption” provision gave HUD the authority to overcome zoning and placement barriers. Which begs the question: why didn’t HUD use that authority?  Hold that question in mind.

The Manufactured Housing Institute (MHI) and the Manufactured Housing Association for Regulatory Reform (MHARR) worked together to enact the MHIA and its “enhanced preemption” authority to overcome zoning barriers. Evidence for that claim by MHARR is provided by these next two documents given to MHProNews. Per that tipster these next two documents were once found on the MHI website which per that source were obtained it from MHI.

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Mini-Summary –> Far More Costly Site Built Housing Has Overall Been Recovering in 2023, While Manufactured Housing Has Continued to Shrink in 2023

That heading above sums up parts 1 and 2 of this report and analysis.

What explains that year to date in 2023 pattern?

Per MHI’s Vice Chairman William Bill Boor, who is also the President and CEO of MHI member Cavco Industries (CVCO), zoning and financing barriers rank near the top of that list.

Boor said that in remarks to Congress made on behalf of MHI.

Such remarks are routinely made under “truth in testimony” standards.

Furthermore, as an official of a publicly traded firm, Boor’s remarks ought to be accurate under Securities and Exchange Commission (SEC) regulations.  There could be severe consequences for Boor to have intentionally made a false statement.  For the full context of Boor’s statement below, see this link here.

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When Boor said that HUD should enforce enhanced preemption ‘consistently and swiftly’ consider the following as an example of what Boor was referring to, because it is a letter from HUD informing a local jurisdiction that they were violating federal preemption for HUD Code manufactured homes.

 

 

MHProNews directly requested that MHI get involved in the Bryan, Texas case. They reportedly declined to do so. A Texas Manufactured Housing Association (TMHA) member was quietly mocked behind his back by an MHI connected source for even making the effort to get Bryan from relenting on what amounted to a broad ban on manufactured homes. Why would MHI and TMHA ignore and mock the positive efforts of one of their own members? Why didn’t they instead take that opportunity to stand up for and fight for enhanced preemption that they said they wanted enforced following the passage of the MHIA of 2000?

 

Bryan Manufactured Homes Ban Passed, But Petition Count, Other Legal Moves May Stop Texas City

 

MHI claimed that they wanted to see ‘racial equity’ and that enforcing the MHIA and enhanced preemption would help accomplish that goal. True enough. But then, when MHProNews/MHLivingNews urged Mayor Pro-Tem Ivory Mewborn to contact MHI’s CEO Lesli Gooch and ask for their help, why did Gooch share pleasant platitudes with Mewborn about sharing that goal, but fail to actually act on behalf of a Black family?  The above and below are two of several possible known examples where MHI had options to act but failed to do so.

 

Manufactured Housing Institute CEO Lesli Gooch Said ‘Our Goals Are Aligned” to Civic Leader Ivory Mewborn Asking for MHI Legal, Other Direct Engagement in Manufactured Home ‘Plant a Home’ Zoning Placement Controversy

 

Put differently, what changed at MHI since 2003-2004? Because Boor’s remarks appear to indicate that MHI still wants federal preemption enforced. If so, then why hasn’t MHI deployed their legal resources as they did in the Department of Energy (DOE) Energy Rule Case? Keep these obviously relevant facts and thoughts in mind.

 

Continuation of the letter from HUD’s Office of Manufactured Housing Programs (OHMP) to
City of Richland, MS shown above.

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Paltering and Bland’s Insights

There is an evidence-based case that some politicians, association, business leaders, and media engage in a practice known as paltering. They may say part of the truth, but withhold some necessary factual information. The effect can be similar to a lie without actually lying.  The definition below and another linked here shed light on that practice.

When Bland says ignore or “Forget” what people say, that’s arguably hyperbole to make her point that following the money trail can be more insightful than the mere words shared by someone.

Seemingly loyal MHI member Andy Gedo provided the following commentary in the context of a ‘debate’ or public online discussion about why manufactured housing was struggling during an affordable housing crisis.  Note that manufactured housing was about 3 times its current size in 2003 than it is performing year-to-date and annualized in 2023.

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The context for the remarks that follow below are from a video recorded interview of Clayton by a pro-Buffett, pro-Berkshire source. Robert Miles had asked Kevin about Buffett and competition. Note Kevin’s reply: “Warren likes to say that there’s two kinds of competition that he doesn’t like, foreign and domestic.”  If you don’t like foreign or domestic competition – and you are able to achieve that goal – that describes a monopoly.

 

 

To fully appreciate these remarks, again, Clayton is making these statements above circa 2011. There were Congressional hearings in 2011 and 2012 on the topic of HUD’s failure to properly enforce the MHIA of 2000. Enhanced preemption was specifically discussed.

 

 

“HUD has Failed…Manufactured Housing”-Manufactured Housing Institute, Cavco Exec Hits HUD Failure to Enforce Manufactured Housing Improvement Act, “Enhanced Preemption,” more – HUD, Competing Claims – Facts & Analysis

 

Also, during that timeframe, the now late Sam Zell was explaining during an earnings call how Equity LifeStyle Properties (ELS, another prominent MHI member that has long held a board seat on MHI’s powerful executive committee) that the firm he led like the oligopoly nature of manufactured housing.  An oligopoly can be a form of monpolization, per legal experts.

 

 

Manufactured housing had established the first, and still only, national building code for affordable single-family housing. MHI was a key part of that process.  Engineer Danny Ghorbani, a former MHI Vice President (VP), was present during the era when manufactured homes made the transition from the mobile home era of the 1960s into the mid-1970s. While many of those now 50+ year old mobile homes were built to similar standards as today’s, others were not. The poorly constructed mobile homes of the past gave ‘better’ mobile homes a problematic reputation.  When Ghorbani and company worked to enact what became known as the HUD Code for manufactured housing (passed in 1974, but that went into effect on June 15, 1976), they thought that manufactured housing would rise even higher than it previously achieved. After all, if “image” issues were holding the industry back in the late 1960s and early 1970s, then establishing quality standards for manufactured housing should cause manufactured home builders to collectively surpass conventional “site built” or “stick built” construction.  But as the illustration from Skyline Champion (SKY, an MHI member brand) reflects, enactment of the HUD Code witnessed a drop off in production (meaning, sales had fallen too).  But well over 500,000 new mobile homes were built for two years running in the early 1970s (approaching 6ooK units a year). When federally regulated and third-party inspected HUD Code manufactured homes began to roll off assembly lines on and after June 15, 1976, what occurred instead was a fall in production and shipments. An obvious question ought to be: What happened? Note too that following the enactment of the Manufactured Housing Improvement Act of 2000 (MHIA), that once again manufactured home production fell instead of rose. Once again, what happened?

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Minneapolis Federal Reserve researchers believe that they identified the problem as to what occurred in the mid-1970s slide of manufactured housing.

Per James A. “Jim” Schmitz Jr and his colleagues, manufactured housing was the victim of what they referred to as ‘sabotaging monopoly’ tactics. Schmitz said this was identified by Thurman Arnold, who worked for the Department of Justice (DOJ). Arnold, says Schmitz et al, asserted that factory-builders were thwarted in the 1940s by ‘sabotage monopoly’ tactics back then.

‘When Thurman Arnold was at DOJ, He, Colleagues Attempted to Protect Factory [Built] Housing Industry’ ‘Monopolies Sabotage, Destroy Markets’ – Prof Jim Schmitz to DOJ; plus Manufactured Home Equities

 

What Schmitz and his colleagues have asserted is that conventional builders, using their leverage over public officials, including some at HUD, wrangled subsidies for their form of construction that helped keep site building (old fashioned “stick building”) going. In a series of research reports and articles, including an example unpacked below, Schmitz et al have said that to fight homelessness and to establish affordable housing in America, there had to be a battle fought and won against ‘sabotaging monopoly’ forces.

 

 

MHProNews has been reporting on Schmitz and his colleagues in recent years, when their insights into why manufactured housing was being thwarted research work was emerging. As was recently noted on the Masthead of MHProNews, members of Congress have been introduced to their research by Lee Ohanian giving testimony on the causes and cures for the affordable housing crisis. Ohanian cited Schmitz.

 

 

Back to MHI…

One might think that MHI would be deeply interested in Schmitz and his colleagues’ research.  But instead, there appears to be silence from MHI on their evidence and thinking. Evidence for that oddity is found in the screen capture below. Note that MHI linked trade media are also silent on Schmitz’s useful research into why manufactured housing is underperforming during an affordable housing crisis. As the collage by MHProNews illustrates, MHI can hardly ignore Schmitz and his collogues research. Why? Because MHI CEO Lesli Gooch gave a presentation at an event for Freddie Mac when a colleague of Schmitz’s was presenting to the same group about sabotaging monopoly and how that harmed manufactured housing. Per an informed source to MHProNews, MHI has not made contact with Schmitz. Why not, if they want to help the industry advance?

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Let’s recap the elements of this mystery for clarity while adding some additional and relevant insights.

Manufactured housing is underperforming. Manufactured home production, as the production trends by year graphics above illustrate, has been for essentially underperforming for all of the 21st century.

Schmitz and others suggest and assert, based on facts and research that included a prior DOJ official, say that apparent antitrust (think: anti-monopoly) laws need to be enforced in order for manufactured housing to achieve its potential. What is that potential? MHI’s prior President and CEO Richard “Dick” Jennison responded to a push by MHProNews to answer that question by saying that manufactured housing could be producing 500,000 new homes a year. Okay, since the industry did that in the early 1970s, that is certainly not only plausible, but likely a low figure. After all the industry was serving a smaller U.S. population in the early 1970s.  Note that MHProNews captured Jennison’s remarks on video.

MHI used to point to Harvard Joint Center of Housing Studies (JCHS) senior fellow Eric Belsky to encourage industry members and others to recognize that manufactured housing had the potential to ‘surpass’ conventional home building by 2010. Here is how Belsky framed it (see quote below). While Belkys used to be featured by MHI in literature, his name is now apparently missing from MHI’s website. Why would MHI hide this relevant piece of information useful to understanding the true history of manufactured housing?  A source indicated to MHProNews that when MHI’s website as rebuilt a few years ago, Belsky was stripped out of their publicly facing literature.

 

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William “Bill” Gates III is a well-known ally of Warren Buffett. Gates served on the board of directors of Berkshire Hathaway years.   Gates remarked in a statement cited by left-leaning CNBC that he initially didn’t want to even meet Warren Buffett because he used tactics that were not value added when he entered a market.  Gates said Buffett found “imperfections” in markets. He would behave in ways that were “almost parasitic.” The Center for Disease Control (CDC) defines that notion as follows. “A parasite is an organism that lives on or in a host organism and gets its food from or at the expense of its host.”

 

Paraphrasing Gates who knows the man well, once Buffett buys into an industry, he looks for imperfections in that market and begins to eat it from the inside in an almost parasitic fashion. Gates and Buffett have collaborated in the Gates Foundation for years. Gates holds a big stake in Berkshire Hathaway, which in turn owns Clayton Homes, 21st Mortgage and VMF, among other brands.  Berkshire wields an outsized influence in the manufactured housing marketplace. Who says? A Manufactured Housing Executives Committee (MHEC) executive who previously shared the insightful point quoted below.

 

 

What has happened to Clayton since Berkshire bought it in 2003? What has happened since Clayton’s quoted remarks above about the moat in 2011, or since the data point cited above in 2011?  Clayton’s market share has grown while the industry itself has shrunk.  Like a parasitic organism, Clayton’s market share is now dominating manufactured housing production, but in doing so, the industry has shrunk.  Think about what Schmitz et al had to say about sabotaging monopoly tactics. Then consider this remark, perhaps due in part to inquiries to Schmitz from MHProNews.

 

 

If monopolization is occurring due to a scheme or plan, that’s illegal under federal and numbers of various states’ laws too.

Yet there is clear evidence outlined herein that this is precisely what is occurring.

Kevin Clayton said that Buffett hates competition. But how does Buffett and his “moat” tactics battle competition? By subverting them, to borrow Schmitz’s notion.  Buffett led Berkshire has interests outside of manufactured housing that deal with housing and inside of manufactured housing.

Why don’t MHI members like Skyline Champion (SKY) and Cavco Industries (CVCO) blow the whistle on Clayton Homes? The case has been made that it is because they are effectively ‘in on’ the scheme. Who says? Samuel “Sam” Strommen, when he was still at Knudson Law. This pull quote is relevant. Look at it as if you were reading it fresh for the first time, in light of the information outlined herein.

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In Strommen’s detailed and well footnoted analysis, he laid out the facts and evidence. He then points the finger at Clayton Homes, and others in MHI who are working (per Strommen’s evidence-backed thesis) in thwarting the very laws that they claim to want enforced. What is the purpose of this purported ploy? To consolidate the manufactured home industry.  By erecting barriers of entry, persistence, and exit for businesses considering manufactured housing or which are already in it, Gedo said that Clayton’s moat gave them an advantage. But it also essentially gave Clayton’s allies an advantage too. Think about Zell’s remarks cited above about manufactured housing being an oligopoly.

 

 

But it isn’t just Gedo, as relevant as his remarks are, that has called out the Moat. Outsiders looking in, like those quoted below have spoken about Buffett and his moat methods too.

 

Now, look at how Buffett himself has described his moat methods.

 

 

Buffett also asserted that what he stresses with Berkshire managers is that they should broaden their moat. See the second quote in yellow, below.

 

 

When the facts support the thesis of monopolization under the folksy sounding colloquial term, the moat, or the castle and the moat, it goes from being a conspiracy theory to something that is the foundation for a plausible case for legal action.  The DOJ has noted that since monopolization schemes are hardly advertised, indirect evidence matters in building a case.

But in manufactured housing, there is both indirect and direct evidence for the notion that Buffett – in league with a few MHI members – are consolidating manufactured housing by keeping the industry small.  MHI has an antitrust policy. But MHI’s antitrust remarks and notice are arguably no more relevant or applied than their Code of Ethical Conduct policies are. Whatever MHI was decades ago, it has apparently become a machine for predatory brands to operate under the guise of a benign organization. MHI furthers this process in part by providing “awards” to members who tow the MHI line. That MHI line is de facto one of consolidation, no matter what they say to the contrary. Those MHI members that get awards are often brands that have poor records with consumer-focused organizations like the Better Business Bureau (BBB).  Imagine, MHI gives awards for ‘excellence’ to companies that have a D- rating with the BBB. That’s chutzpah! 

 

 

Cavco’s Inaugural Environmental, Social and Governance (ESG) Report Examined – ‘Ask Questions-Raise Concerns if They Exist’ – BBB Rating, Corp History, Other Factual Insights and Evidence Explored

 

Speaking of awards, when it comes to duplicity, one ought to ask MHI if they plan to give Cavco an award for best example of duplicity in 2023? In the same year that Cavco touts their new ESG standards, Cavco’s Bill Boor is making testimony to Congress on why ESG is a problem. Bill, which is it? Or do your remarks – and that of others involved at MHI – depend on the audience? Why did Boor answer analyst Greg Palm one way, and Congress in another in the explanation of why the industry is underperforming?

 

There is literally a wide array of remarks by those involved in manufactured housing and outsiders looking in who have come to realize that indicate in the words of some prominent MHI members that consolidation is their goal. If so, that means enhanced preemption under the MHIA of 2000 is merely window dressing for those who want it to be enforced. But federal enhanced preemption is brushed aside in practice when it comes to being the actual desire for MHI and its leaders.

Consolidation is beneficial when preemption is thwarted. Who said? Equity LifeStyle Properties (ELS) and others.

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With the above in mind from ELS, now look at the array of remarks that point to that pattern from other MHI member brands. Note that the remarks below reveal some of the duplicity noted above. Some are saying one thing, others differently. This is paltering and posturing in action on the subject of “federal enhanced preemption” or DTS for more competitive financing.

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Ghorbani was the founding president of what today is MHARR, but was originally known as the Association for Regulatory Reform (ARR). Ghorbani ripped MHI for posturing and preening through photo ops and by other means while magically failing to achieve what they claim they want to accomplish. Ghorbani also said that since MHI claims they want to be the post-production leader that means that they are responsible for leading a legal effort to get enhanced preemption enforced.

 

Disclosures 

Note that MHARR is a sponsor of MHProNews. MHARR does not necessarily endorse MHProNews, but they have obviously felt that their relationship with our platform is useful to getting their message across. MHProNews had Clayton Homes, 21st, and MHI among its clients/sponsors.  When MHProNews began to break the revelations of how MHI was behaving vs what they were claiming, several of those firms were sponsors. MHARR was not. Put differently, MHProNews has demonstrably not allowed advertising dollars influence our publication’s reporting and analysis. Perhaps more specifically and precisely, MHARR news was always presented from early on by MHProNews as was MHI. MHI news is still provided, but now with merited critiques. These are generated by MHProNews, not MHARR. MHARR has no clue that this report is being written, much less what it will say. When we do a Q&A with MHARR, it is disclosed as such.

 

Others involved in MHI have from time to time stated their concerns or even disgust with that organization. Some examples are provided.

 

Since Loss of Stinebert at Manufactured Housing Institute (MHI) ‘Empowered F-cking Greedy, Selfish Leaders of Companies to Make MHI a Tool for Themselves’-plus MHVille Markets Update

 

The MHProNews’ sister site, MHLivingNews pointed out that Stinebert’s parting remarks to the industry in hindsight appear to be a slap in their faces before his purported NDA (non-disclosure agreement) kicked in.

 

 

As MHProNews began to ‘wise up’ what was occurring at MHI, MHI reportedly began to actually target one of their own members (i.e.: the parent company of MHProNews) by putting up signs like the one shown below.

 

 

Why would MHI want to bar journalists in the first place? Their stated excuse at the time might in hindsight have been handled differently. MHI systematically went about thwarting this writer’s presence at industry events.  That too has possible antitrust, RICO, and other implications.  But it reflects how much MHI wants to avoid being exposed as corrupt and duplicitous phonies who are now working for industry consolidation, regardless of what they may say. The fact that MHI leaders can’t keep their stories straight recalls the wisdom of Abraham Lincoln about liars.

 

Some MHI members are, per sources, in agreement with this evidence-based thesis.  Those who disagree can’t, won’t, or don’t debate the proposition publicly. MHI has declined comments that once used to flow from them readily for years to MHProNews. Having praised this publication for our accuracy and balance, they now want to pretend we don’t exist. Attorneys connected with MHI, Clayton Homes, 21st Mortgage Corporation, and Berkshire Hathaway have all been among those asked for comments or a rebuttal to this thesis. They have consistently declined doing so. Some examples follow.

 

 

 

 

The paradox is that manufactured housing firms like those mentioned could arguably be making more money if they were doing business ethically and honorably.

 

Cavco Industries’ $2 Trillion Dollar Financial Broadside, Implications from Cavco Industries (CVCO) Doc, CEO William “Bill” Boor Remarks; plus Sunday Weekly MHVille Headlines Recap

 

But now that they are on a course of action, individuals and firms who have been directly tied by public officials and others with problematic and illegal behaviors have been exposed here, but routinely not among MHI’s amen corner.

 

Employees and consumers alike arguably suffer as a result of this pattern.

1000s Unhappy Working at Clayton Homes, Skyline Champion, Cavco, Sun, ELS, RHP, Flagship, Impact, Yes!, Havenpark Communities-What Will They Do? Facts, WalkOut Threat Op-Ed; plus MHMarkets Update

Biden administration officials have warned against the harms caused by consolidation. True enough. But that begs the question. Then why haven’t they taken action in manufactured housing?

There are related questions plus more examples and insights that need to be asked not entirely answered by this article and analysis. To learn more, see the linked reports that follow. Because the makings of a robust antitrust case are now hiding in plain sight.

 

 

‘A Cruelly-Unfulfilled Promise and Mandate’ MHARR’s Mark Weiss, J.D., Rips Duty to Serve (DTS) Subversion-Names, Documents Groups Failing Manufactured Housing Consumers, Professionals; plus MHVille Stocks Update

Whistleblower$ Rewarded, Organization Risk$-What Legal Experts Say Can Impact Dirty Firms-Benefit Accountants, Former or Current Employees-Manufactured Housing’s Dark Side; plus MHVille Markets

PS: Note: it should be self-evident that Warren Buffett has the resources to accomplish most anything in manufactured housing that he wants. That implies that the status quo suits his interests.  The Buffett-Waters report below is a flashback that provides charts, graphs, quotes and data not found herein but which are very much as relevant today as it was when it was published.

Manufactured Housing’s Rorschach Test – How You See the Facts, Visuals, Narratives and Evidence Speaks Volumes; plus Sunday Weekly Manufactured Home Industry (MHVille) Headlines in Review

‘Dark Triad’ – Researchers Detect ‘5 Key Characteristics of BILLIONAIRES’ – Evidence how Billionaires, Super Wealthy Think Differently Than Most-Takeaways and Lessons; plus Sunday MHVille Weekly Headlines Recap

Part IV. Daily Business News on MHProNews Markets and Headline News Segment

 

Headlines from left-of-center CNN Business – from the evening of 7.27.2023

• Historic streak
• Traders work the floor of the New York Stock Exchange on July 25, 2023, in New York City. Wall Street stocks were mixed early July 25 following a round of generally positive earnings as markets looked ahead to a Federal Reserve interest rate decision.
• The Dow sinks, snapping its longest run since 1987
• Chick-fil-A wants to send your drive-thru chicken on a conveyor belt and down a chute
• Newly unveiled banking regulation wouldn’t have prevented this year’s US bank failures
• Billionaire investor Leon Black is accused of raping teen in Jeffrey Epstein’s NY townhouse
• Ford’s EV losses climb but overall profits rise
• AC is hard on the planet. This building has a sustainable solution
• McDonald’s teases new CosMc’s restaurant concept
• ‘Barbenheimer’ is stimulating the economy
• East Palestine train derailment has now cost Norfolk Southern $1 billion

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Headlines from right-of-center Newsmax 7.27.2023

• New Charges: Trump Accused of Asking Staffer to Delete Footage in Doc Case
• S. prosecutors broadened their criminal case against Donald Trump on Thursday, bringing new charges against the former president and accusing a second of his employees with helping to evade officials who were trying to recover sensitive national security documents he took from the White House. [Full Story]
• Babin: Bribe Claims Justify Impeachment Inquiry
• Fry: Mayorkas Testimony ‘Belies’ Evidence | video
• Ernst: ‘Good Step’ to Stop Hunter Biden Plea
• Dershowitz: Alternate Electors a ‘Way to Challenge’ | video
• Mike Johnson: Mayorkas ‘Most Dishonest Witness’ | video
• Burchett: Pentagon, NASA Hiding UFO Info | video
• Fitzgerald: Mayorkas Admits No Border Control
• Giuliani: ‘Real Judge’ Delayed Hunter’s Plea Deal | video
• Ben Cline: ‘Amount of Corruption Is Staggering’ | video
• Dershowitz: Judge in Hunter Case Made Right Move | video
• Joseph diGenova: ‘Corruption Run Rampant’ | video
• Burlison: Don’t Jump to Conclusions on UFOs | video
• Mike Huckabee: A Great Day for Justice | video
• Tax Revenue Drops $343M as Wealthy Flee
• California is experiencing the nation’s worst tax income migration, with a net loss of $343.2 million in 2021 alone, as wealthy earners continue to leave the state…. [Full Story]
• New Charges: Trump Accused of Asking Staffer to Delete Camera Footage in Classified Doc Case
• S. prosecutors broadened their criminal case against Donald Trump [Full Story]
• Related
• Ted Cruz: Trump Indictment Is Election Tampering for 2024 |video
• Biden Admin Asks SCOTUS to Block ‘Ghost Gun’ Ruling
• President Joe Biden’s administration on Thursday asked the U.S. [Full Story]
• WH: No Possibility Biden Would Pardon His Son
• The White House said on Thursday there was no possibility President [Full Story]
• Related
• Hunter Biden Judge Questioned ‘Agreement Not to Prosecute’
• Paul Cautions Against Biden Impeachment Inquiry
• Ted Cruz Calls for Impeachment Inquiry of Pres. Biden
• The House needs to open an impeachment inquiry into President Joe [Full Story] | video
• Feinstein Confused at Hearing, Told to Vote Aye
• S. Sen. Dianne Feinstein, D-Calif., 90, the oldest lawmaker in [Full Story] | video
• 5 Key Takeaways From UFO Hearing
• Wednesday’s congressional hearing may have put Congress one step [Full Story] | Platinum Article
• Jim Jordan: Facebook Docs Tie WH to Censorship
• House Judiciary Committee Chair Jim Jordan, R-Ohio, released a [Full Story]
• Related
• House Judiciary Puts Zuckerberg’s Contempt on Hold |video
• US to Provide Ukraine With Black Hornet Spy Drones
• The U.S. Department of Defense announced $400 million in additional [Full Story]
• Related
• US Marine Veteran Freed From Russia in ’22 Hurt Fighting in Ukraine
• Russia Accuses Ukraine of ‘Terrorism’ After Drone Attacks
• Ukraine Allies Commit $244M for Humanitarian Demining
• Zelenskyy: Corruption, Treason in Ukraine Won’t Be Tolerated
• Kiley, Foxx Intro Bill to Keep Labor Secretary Role Temporary
• GOP Reps. Kevin Kiley (Calif.) and Virginia Foxx (N.C.) on Thursday [Full Story] | video
• Mastercard Tells Banks to Block Marijuana Purchases
• In a blow to the struggling cannabis industry, Mastercard has told [Full Story]
• Ex-Spy: CIA Callous to Sex Abuse of Female Spies
• A former CIA officer who rose through the ranks and supervised other [Full Story] | Platinum Article
• Steve Wynn Pays $10M to End Sexual Misconduct Claims
• Casino mogul Steve Wynn has ended a yearslong legal fight with Nevada [Full Story]
• Roy Slams GOP Lawmakers Hedging on Mayorkas Impeachment
• Republicans hedging on impeaching Department of Homeland Security [Full Story]
• Black Leaders Decry DeSantis’ ‘Policy Violence’
• Civil rights activists cheered when Ron DeSantis pardoned four Black [Full Story]
• Mike Johnson: Need Federal Gender Care Ban
• Mike Johnson, R-La., said Thursday there needs to be a [Full Story]
• Biden’s ‘Invitation’ to Netanyahu a ‘Political Move’
• President Joe Biden is still punishing Israeli Prime Minister [Full Story] | Platinum Article
• Wall Street Closes Down, Dow Snaps Winning Streak
• U.S. stocks ended lower Thursday after news that the Bank of Japan [Full Story]
• Israel President Urges Calm; More Protests Planned
• Israel’s president urged both sides of a dispute over moves to [Full Story]
• Nassar Survivors Sue School Over Alleged ‘Secret Decisions’
• Women who were sexually assaulted by former Michigan State University [Full Story]
• Dow Ends Longest Winning Streak Since 1987
• The Dow Jones Industrial Average was on the verge of ending its [Full Story]
• Civil Rights Groups Rip ‘Soul Fest’ at Confederate Park
• Civil rights groups and other advocates denounced a concert series [Full Story]
• North Korea’s Kim Shows Off Banned Missiles to Russian Minister
• Russia’s defense minister accompanied North Korean leader Kim Jong Un [Full Story]
• South Florida Waters Hit Hot Tub Level of 101 Degrees
• The water temperature around the tip of Florida has hit triple digits [Full Story]
• Facebook’s Algorithm Doesn’t Alter People’s Beliefs: Research
• Do social media echo chambers deepen political polarization, or [Full Story]
• Powell: Bank Capital Regs Must Strike ‘Difficult Balance’
• Federal Reserve Chair Jerome Powell said Thursday that he supports [Full Story]
• Mattel Expects Barbie Bounceback to Spark Toy Sales
• Mattel is banking on the box office success of the “Barbie” movie to [Full Story]
• Dangerous Fungus Is Becoming More Prevalent
• In 2016, hospitals in New York state identified a rare and dangerous [Full Story]
• Probiotics May Improve Cognitive Function
• Many people turn to probiotics for their digestive woes, but a [Full Story]
• Scorching Heat Stresses US Power Grids, Prices Soar
• S. power prices rose to their highest in months in a couple of [Full Story]
• Utah Mayor Staggs Calls Sen. Romney to Debate Stage
• Trent Staggs, mayor of Riverton, Utah, called out Sen. Mitt Romney, [Full Story] | video
• Finance
• Jim Jordan: Facebook Docs Tie WH to Censorship
• Jim Jordan: Facebook Docs Tie WH to Censorship
• House Judiciary Committee Chair Jim Jordan, R-Ohio, released a Twitter Files-like thread Thursday, where he revealed what he called a Facebook censorship operation by President Joe Biden’s White House.Jordan’s “Facebook Files Part 1” alleged the White House and…… [Full Story]
• Tax Revenue Drops $343M as Wealthy Earners Flee State
• CT5 V-Series Blackwing – Not Your Grandfather’s Cadillac
• Zapesochny: To Reform Student Loans Fix College Costs
• Tupperware Skyrockets 300% in 5 Trading Days
• More Finance
• Health
• Probiotics May Improve Cognitive Function
• Many people turn to probiotics for their digestive woes, but a preliminary study suggests that what’s good for gut may also be good for the aging brain. The study involved older adults with mild cognitive impairment, where memory and other thinking skills are starting to… [Full Story]
• Tick-Borne Meat Allergy Affects Nearly a Half Million
• Fraud Alert: Watch Out for New Medicare Scams
• Reports of Stomach Paralysis From Weight Loss Drugs
• How to Deal With Anger in a Healthful Way