The first is MHARR’s spotlight on FHFA’s Duty to Serve (DTS) lending decision. First, note the contrast. The far larger Manufactured Housing Institute (MHI) was mute on this same issue this week. Here was their headline topics. Whereas much of the industry agrees that there needs to be more financing and more competitive financing, what Knudson Law’s Sam Strommen identified as the Berkshire Hathaway dominated MHI was perhaps not surprisingly silent on this key issue.
That noted, here is the MHARR release.
FHFA Has Explaining To Do With Biden Administration And Congress For Its Approval Of Fatally-Flawed DTS “Plans”
The Federal Housing Finance Agency [FHFA] has released revised and updated Duty to Serve Underserved Markets “implementation” plans for both Fannie Mae and Freddie Mac. The plans, as approved by FHFA, contain revisions for 2020 – the final year of the Enterprises’ initial three-year DTS implementation period — as well as provisions extending into 2021. While 2021, based on prior FHFA guidance, was initially targeted to be the first year of a new three-year DTS plan period (i.e., 2021-2023) FHFA, ostensibly due to the COVID-19 pandemic, instead instructed Fannie Mae and Freddie Mac to submit a one-year plan extension proposal for 2021.
Contrary to the affordable housing and affordable housing finance policies just enunciated by the Biden Administration (see, article above, “Biden Intensifies Focus on Affordable Housing”) the modified and updated plans approved by FHFA continue Fannie and Freddie’s unconscionable, baseless and unacceptable retreat from any type of support for the largest single segment of the mainstream manufactured housing market, financed through personal property loans. At the same time, they expand the Enterprises’ ongoing scheme to divert DTS support away from the mainstream HUD Code manufactured homes that serve people in need of affordable housing, and toward more costly hybrid-type homes, from the industry’s largest corporate conglomerates, which serve more affluent buyers.
The new DTS “implementation” plans take a further axe to the Enterprises’ already meager and grossly insufficient proposals regarding the personal property or “chattel” loans that represent nearly 80% of all manufactured home consumer loans. The updated Freddie Mac plan, for example, deletes nearly all of its prior language and commitments to the chattel segment of the market, including all language regarding chattel loan “purchases.” Similarly, Fannie Mae’s revised plan shows no activity in the chattel segment whatsoever, through the end of 2021. Instead, Fannie states that it will “establish outreach and research strategy” for its upcoming “2021-2023 [DTS] plan and potential options for developing future chattel activities.” (Emphasis added). There is no clue or indication, however, as to just when that “future” will arrive. After more than a decade, then, the Enterprises continue to mouth the same timeworn excuses, stating: “We do not have the requisite systems in place to purchase chattel loans, nor do we have historical data on chattel loans performance that would allow us to make determinations about whether the purchases of these loans can be made in a safe and sound manner.” Meanwhile, the Fannie and Freddie revised and updated plans both go to great lengths during the 2021 extension period to further promote and expand their programs for more costly hybrid-type homes that fall outside of the affordable manufactured housing mainstream and benefit the industry’s largest corporate conglomerates, even though they have no “historical data” whatsoever on the performance of such loans, and both programs have landed – once again – with a thud in the marketplace, with only a handful of such loans reported as purchased by Fannie Mae.
Put simply, the non-implementation of DTS within the manufactured housing market, and the attempted diversion of what little activity there is and has been to more costly hybrids, is a disgrace that directly conflicts with the housing policies and priorities of the Biden Administration. Similarly, reports to Congress from FHFA stating that DTS is being implemented within the mainstream, affordable manufactured housing market are an ongoing fraud. Instead of doing what is needed to help credit-worthy lower and moderate-income Americans access safe, decent and affordable manufactured housing, FHFA, Fannie Mae and Freddie Mac are acting as shills for the industry’s largest businesses, and their financial interests. This trajectory, that has made a farce of DTS within the manufactured housing market for more than a decade, must end.
Based on the above, FHFA’s approval of Fannie and Freddie’s baseless, deficient and deceitful DTS “plans,” is squarely at odds with President Biden’s January 26, 2021 housing policy Executive Memorandum which, itself, is fully consistent with Congress’ original intent and objectives with respect to DTS. Therefore, after wasting twelve valuable years there are now many questions that Fannie, Freddie and FHFA should have to answer – preferably at a public hearing – while, at the same time, the existing DTS “plans” are drastically revised to include market-significant securitization support for mainstream manufactured home loans.”
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To sharpen the MHARR focus, this merits repeating. “Based on the above, FHFA’s approval of Fannie and Freddie’s baseless, deficient and deceitful DTS “plans,” is squarely at odds with President Biden’s January 26, 2021 housing policy Executive Memorandum which, itself, is fully consistent with Congress’ original intent and objectives with respect to DTS.” Rephrased, MHARR says that Biden Executive Memorandum is at least on paper “fully consistent” with the Congressional intent for DTS.
That noted, MHProNews will spotlight the leak from MHI which may explain why the Biden White House has said one thing, while the FHFA is doing another.
Additionally, David Dworkin from the MHI “coalition ally” National Housing Conference stated that the Government Sponsored Enterprises (GSEs or Enterprises) of Fannie Mae and Freddie Mac had the ability to properly implement this much needed law. So, why was Dworkin so supportive while MHI CEO Leslie Gooch pushing what MHARR calls “more costly” “hybrid” CrossModTM homes?
The evidence continues to show that MHI postures support for consumer and independent interests, but arguably fails to deliver on what they project.
That noted, MHProNews will now pivot toward the second part of tonight’s report. That featured focus is found further below.
For the growing numbers of new readers, a few quick evening/nightly market report insights.
- Every business evening, MHProNews provides a bullet list of left-right news headlines from CNN and in a matter of moments, savvy professionals can see at a glance news headlines and views across the political spectrum.
- This is a time saving and insightful way to quickly grab insights from across the left-right divide for those who are hooked on this market-nightly feature.
- Our featured focus follows the quotable quotes, periodic political cartoons, those left-right headlines, and two of our three market summary graphics as reported at the closing bell.
- After the featured focus, are some recent/related report links and the third manufactured housing focused stock equities graphic. There are some additional items that include the free signup for the manufactured housing industry’s x2 weekly emailed news to the most-read trade publication in our profession:
On a day that saw most manufactured home connected equities rise, let’s press ahead toward those other business-nightly features.
Quotes That Shed Light – Industry, American, Social, National Issues…
Headlines from left-of-center CNN Business
- Bankrupt
- A barista is working on the bar counter in a Luckin store. Luckin coffee, once considered as the competitor of Starbucks in Chinese market, after being exposed to make false data and fake trading, has stopped trading and delisted on NASDAQ on June 29. Having completed the management personnel changes in mid July, more than 4000 stores of Luckin coffee shops in China still run business as normal.
- China’s Luckin Coffee aimed to rival Starbucks, but flamed out after a sales fraud scandal
- GM, Ford and other carmakers can’t get enough chips. It’s a huge problem
- Stocks pop despite jobs report showing slow recovery
- US economy adds 49,000 jobs in January — a grim sign for the jobs recovery
- WallStreetBets Redditors go ballistic over GameStop’s sinking share price
- Amazon loses attempt to delay milestone union vote at Alabama warehouse
- Watch CNN go inside a gathering of QAnon followers
- He spent years advocating for construction workers. Now he could shake up the gig economy
- $1.7 billion Ponzi scheme defrauded 17,000 investors, SEC says
- Kuaishou stock soars 160% in world’s biggest IPO since 2019
- ‘There is real teeth to this’: Legal experts weigh in on Smartmatic’s $2.7 billion lawsuit against Fox News
- Vale will pay $7 billion over Brazilian dam collapse that killed 270
- Don’t fall for these 4 money myths
- Peloton is spending $100 million to reduce delivery delays
- Here’s what it’ll be like to call a Super Bowl during a pandemic
- Close up low angle view of a man working from home on a laptop computer sitting at a desk surfing the internet
- Employees working from home are putting in longer hours than before the pandemic
- Mandatory Credit: Photo by MARTIAL TREZZINI/EPA-EFE/Shutterstock (10712514b)
- Ngozi Okonjo-Iweala, from Nigeria, candidate as Director General of the World Trade Organization (WTO), attends the press conferences of candidates for the WTO Director-General selection process, at the headquarters of the World Trade Organization (WTO), in Geneva, Switzerland, 15 July 2020.
- Press conferences of candidates for WTO Director-General, Geneva, Switzerland – 15 Jul 2020
- A Black woman will be the world’s top trade official for the first time
- Andrew Yang, founder of Venture for America and 2020 Democratic presidential candidate, stands in the spin room following the Democratic presidential debate at Saint Anselm College in Manchester, New Hampshire, U.S., on Friday, Feb. 7, 2020. The New Hampshire debates often mark a turning point in a presidential campaign, as the field of candidates is winnowed and voters begin to pay closer attention.
- Andrew Yang: How to pull American cities through the pandemic
- SUPER BOWL SUNDAY
- An aerial view of Raymond James Stadium ahead of Super Bowl LV on January 31, 2021 in Tampa, Florida.
- Super Bowl LV will be a bonanza for gambling companies
- Watch the 2021 Super Bowl ads
- Robinhood buy its first Super Bowl ad
- Budweiser skips the Super Bowl
- Here are some of Budweiser’s best Super Bowl ads
- AMAZON’S NEXT STEPS
- As Jeff Bezos steps down, Amazon stakes its future on the cloud
- Meet Andy Jassy, the next CEO of Amazon
- In 2019, CNN asked Andy Jassy if he wanted CEO
- Analysis: Bezos leaves company that caused a reckoning
- In 1999 Bezos was shocked about Amazon’s success
Headlines from right-of-center Newsmax
- Reschenthaler: Trump Deserves ‘at Least One Nobel Peace Prize’
- The Biden Presidency
- Biden Says Economy Is ‘in Trouble,’ GOP Unwilling to Do Enough
- House OKs Budget Package Paving Way for Biden COVID-19 Relief Bill
- National Security Council Principals Convening to Discuss Iran
- Haris Breaks Senate Tie on Budget Plan
- Biden Pulls Yemen War Support
- Kremlin: Biden’s Russia Remarks ‘Aggressive, Unconstructive’
- Saudi Arabia: Biden Speech Reiterates Commitment to Allies
- Mike Pence Starting Podcast
- Former Vice President Mike Pence is starting a podcast
- Babin to Newsmax TV: Taylor Greene Vote to Bite Dems
- Brian Babin of Texas suggested there will be retribution
- Related
- Greene: Staying on Committees Is ‘a Waste of My Time’
- Marjorie Taylor Greene Thanks Democrat ‘Morons’
- GOP Backs Greene, Democrats Made Their Own Crazy Statements
- Pentagon Will Deploy Troops to Assist COVID-19 Vaccine Drive
- The Pentagon will deploy troops to assist getting Americans
- GOP Donors Join for Newsom Recall
- Several prominent Republican donors, including several who heavily
- Part IV: Russia’s Hypersonic Warheads: New HEMP Threat
- Russia has been working on ways to boost its ability to carry out a
- Related
- Part I: Russia Poses a Serious EMP Threat
- Part II: Russia’s HEMP Weapon Could Destroy America
- Part III: Russia Has Made EMP Threats
- Economy Gains Just 49,000 Jobs in January
- The recovery in the U.S. labor market disappointed for a second month
- PayPal Says Consumer Watchdog Investigating Venmo
- PayPal Holdings Inc said on Friday it was cooperating with the U.S.
- IRS Mistakenly Says Over 100,000 Ineligible for Stimulus Checks
- The Internal Revenue Service in January mistakenly sent letters
- Senate Adopts Blueprint for Stimulus as Harris Breaks Tie
- The Senate voted 51-50, after Vice President Kamala Harris broke her
- Jim Jordan to Newsmax TV: Time for House GOP to Unite and Stop ‘Radical’ Dems
- It’s time for House Republicans to unify to stop the radical
- Finance
- Economy Gains Just 49,000 Jobs in January
- The recovery in the U.S. labor market disappointed for a second month in January with only modest job growth that highlights persistently difficult prospects for millions of unemployed and bolsters calls for more stimulus…
- Crypto Has Become a Currency Among Thieves
- US Trade Deficit Rises to 12-Year High $679 Billion
- The $2.1 Billion Case for Building a Federal EV Fleet
- Brace Yourself: Long-Haul Travel May Not Get Going Until 2023
- Health
- Seniors Struggling to Get Vaccine Appointments
- Americans over the age of 65 are eligible for COVID-19 vaccines in numerous states, but trying to get them has become a nightmare for many. Some older citizens have had to travel hundreds of miles to get their shots, and others say even securing an appointment is…
- Bedside Manner Even More Important to ER Patients
- Healthy Super Bowl Snacks
- Study: Pot Helps Business Creativity
- Drugged Driving a Growing Threat
Market Indicator Closing Summaries – Yahoo Finance Closing Tickers on MHProNews…
Featured Focus –
Where Business, Politics and Investing Can Meet
As was teased above, here is tonight’s featured focus from MHARR’s Washington Update to MHProNews.
HUD DISCRIMINATORY ZONING STUDY STARTS ON WRONG TRACK
MHARR has filed comments with the Office of Management and Budget (OMB) seeking to ensure that a pending HUD study of state and local regulatory barriers to the use and placement of “factory-built” structures is – as it should be — focused specifically and exclusively on discriminatory and exclusionary edicts targeting the availability of affordable, federally-regulated mainstream manufactured housing. MHARR’s comments respond to a December 18, 2020 HUD request for OMB approval of “information collection” relating to such a study.
MHARR specifically sought a HUD study of the negative impacts resulting from discriminatory zoning edicts that either exclude or severely restrict the placement of affordable HUD Code manufactured homes in many communities in an April 4, 2019 meeting with officials of HUD’s Office of Policy Development and Research (PD&R), and in a subsequent April 24, 2019 request to HUD Secretary Ben Carson. MHARR reasoned that a specific study of this type, would be an important step by HUD in connection with MHARR’s effort to advance the full and proper implementation of the enhanced federal preemption provision of the 2000 reform law. Enhanced federal preemption was specifically enacted by Congress to prevent the discriminatory exclusion of manufactured housing via zoning edicts, but has been baselessly ignored by HUD for two decades. The study of “factory-built structures” proposed by HUD in its December 12, 2020 notice, however, rather than “federally-regulated manufactured homes,” will do more to create confusion and chaos than it will to advance the enhanced preemption needed to fight discriminatory zoning laws for the ultimate benefit of American homebuyers.
MHARR thus maintains that the approach proposed by HUD will likely be abused either to wrongfully shift the focus of this information collection and study away from affordable, mainstream HUD code manufactured housing – where it should be – or otherwise skew or undermine its results (and value) by including other types of unrelated, more costly “factory-built” homes that: (1) are not federally-regulated and thus not within HUD’s jurisdiction or authority; (2) are regulated as to construction and safety by state and local codes; and (3) are not subject to the same types of zoning and financing discrimination as mainstream HUD Code manufactured homes and manufactured home consumers. Any such study addressing both HUD Code manufactured homes and other types of factory-built structures, would be like comparing apples to oranges, would needlessly expend tax dollars to examine a problem (i.e., zoning and placement discrimination against non-HUD Code homes) that does not exist, and would not produce the results needed to advance the availability and utilization of affordable, mainstream, federally-regulated manufactured housing.
Unless these serious and, indeed, fatal flaws are corrected by HUD and/or OMB to address – and address only – affordable, mainstream HUD Code manufactured housing, MHARR will have no choice but to oppose this study and its conclusions going forward.
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To learn more on this topic, see the related report below.
MHProNews’ take? What MHARR is signaling appears to be the latest iteration of the purported collusion that Sam Strommen at Knudson Law and people inside MHVille believe is evidence of collusion between people in various federal positions and large, private, corporate interests.
RICO?
Badges of Fraud, anyone?
Related, Recent, and Read Hot Reports
Manufactured Housing Industry Investments Connected Closing Equities Tickers
Some of these firms invest in manufactured housing, or are otherwise connected, but may do other forms of investing or business activities too.
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- NOTE: The chart below includes the Canadian stock, ECN, which purchased Triad Financial Services, a manufactured home industry lender
- NOTE: Drew changed its name and trading symbol at the end of 2016 to Lippert (LCII).
- NOTE: Deer Valley was largely taken private, say company insiders in a message to MHProNews on 12.15.2020, but there are still some outstanding shares of the stock from the days when it was a publicly traded firm. Thus, there is still periodic activity on DVLY.
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Winter 2021…
Berkshire Hathaway is the parent company to Clayton Homes, 21st Mortgage, Vanderbilt Mortgage and other factory built housing industry suppliers.
· LCI Industries, Patrick, UFPI, and LP each are suppliers to the manufactured housing industry, among others.
· AMG, CG, and TAVFX have investments in manufactured housing related businesses. For insights from third-parties and clients about our publisher, click here.
Enjoy these ‘blast from the past’ comments.
MHProNews. MHProNews – previously a.k.a. MHMSM.com – has celebrated our 11th year of publishing, and is starting our 12the year of serving the industry as the runaway most-read trade media.
Sample Kudos over the years…
It is now 11 years and counting…and Williams, who praised our accuracy then said this.
Learn more about our evolutionary journey as the industry’s leading trade media, at the report linked below.
· For expert manufactured housing business development or other professional services, click here.
· To sign up in seconds for our industry leading emailed headline news updates, click here.
Disclosure. MHProNews holds no positions in the stocks in this report.
That’s a wrap on this installment of “News Through the Lens of Manufactured Homes and Factory-Built Housing” © where “We Provide, You Decide.” © (Affordable housing, manufactured homes, stock, investing, data, metrics, reports, fact-checks, analysis, and commentary. Third-party images or content are provided under fair use guidelines for media.) (See Related Reports, further below. Text/image boxes often are hot-linked to other reports that can be access by clicking on them.)
By L.A. “Tony” Kovach – for MHLivingNews.com.
Tony earned a journalism scholarship and earned numerous awards in history and in manufactured housing. For example, he earned the prestigious Lottinville Award in history from the University of Oklahoma, where he studied history and business management. He’s a managing member and co-founder of LifeStyle Factory Homes, LLC, the parent company to MHProNews, and MHLivingNews.com. This article reflects the LLC’s and/or the writer’s position, and may or may not reflect the views of sponsors or supporters.
