The Manufactured Housing Institute (MHI) has sent out a message to their members earlier today. It’s debatably a common-for-the-Arlington, VA based trade group, in that it has a mix of purportedly accurate, questionable, misleading, and missing information.
Among the more interesting points are what MHI was mute on.
For example, what is to become of Joseph Stegmayer, who is still listed on the MHI website as their current executive committee chairman?
Stegmayer stepped down last week under the cloud of an Securities and Exchange (SEC) subpoena, as the Daily Business News on MHProNews reported at this link above.
Quoting part of Cavco’s statement: “The Company also announced that it had received a subpoena from the Securities and Exchange Commission’s Division of Enforcement (“SEC”) requesting certain documents relating to, among other items, trading of the stock of another public company. Subsequent to sending the Company a subpoena, the SEC sent a subpoena for documents and testimony to Joseph Stegmayer, regarding similar issues. The Company has initiated an independent investigation and intends to cooperate fully with the SEC’s investigation. Please see Part II, Item 1, Legal Proceedings section of the Company’s quarterly report on Form 10-Q for the period ended September 29, 2018, filed with the Securities and Exchange Commission contemporaneously with the issuance of this press release, for additional information regarding this matter.”
Sources suggest to MHProNews that if Stegmayer is cleared, he might return to a leadership role at Cavco. But if the SEC investigation proves to be as serious as some inside and outside of the publicly trade firm (CVCO) believe, Stegmayer could be exited from his new interim role. The full Cavco release is found at this link here.
“Debacle”
An insider, well-placed source told MHProNews that the development at Cavco was a “debacle.” There will be a separate follow-up report that focuses on updates from Cavco and other sources on the Stegmayer matter.
But why is Stegmayer still in his position as MHI Chairman, while the fog of an SEC investigation hangs over Cavco?
Scandal and Some MHI Chairmen…
Recall that MHI didn’t budge when then-Chairman Nathan Smith came under his own cloud when residents of SSK filed a class action suit against his firm.
Other controversies during the Tim Williams/21st Mortgage prior chairman era failed to move the Arlington, VA based association then. That included, but isn’t limited to, allegations of racism and predatory lending against Berkshire brands. Congresswoman Maxine Waters is now slated to take over as the chair for the House Financial Services Committee. Waters and her colleagues asked for the Department of Justice (DOJ) to investigate.
According to the Seattle Times, those investigations are ongoing. MHProNews recently reported that other federal investigations of MHI member ‘big boys’ are also under investigation.
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One or more investigation storm(s) of the manufactured housing industry’s larger members, potentially including MHI itself, are purportedly approaching. And should that tempest become public in an oversight way, it may come from Democratic sources, given statements by Waters and others.
Yet for whatever reasons, Tim Williams, Jim Clayton, Warren Buffett and others supported opposition candidates that previously worked for MHI on Preserving Access. Or is that part of the point?
Recall that Nathan Smith admitted that the industry (i.e.: MHI) had to honestly admit the times it dropped the ball.
That said, where are any of the issues raised herein addressed in MHI’s recent email news today? Where is the transparency that the late Howard Walker – who was on the MHI Executive Committee for years – said should exist?
Note there are other debatably deceptive, misleading or a mix of truth-with-slight-of-hands in the recent MHI communication to their members. Some of those may be explored further in the days ahead.
In the meantime, a simple word to the wise. If MHI said it, how does it stack up to objective facts?
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