Canadian-based ECN Capital is the parent company to Triad Financial Services (TFS). The quarterly results provide below are provided by ECN’s quarterly Q2-2022 disclosure document, linked here. Their data provides an interesting snapshot from one of the oldest lenders in manufactured housing and one of the industry’s lenders that are independent of a vertically integrated HUD Code manufactured home producer/retailer. Note the “Blackstone partnership” disclosure. Triad is a member of the Manufactured Housing Institute (MHI) but is viewed by numbers in the industry to be in the ‘white hat’ camp. From the ECN presentation of financial results are the following statements. It will be followed by additional information, linked related reports, and our Daily Business News on MHProNews manufactured home REITs and equities updates.
Q2-2022 FINANCIAL RESULTS
Highlights
Adjusted operating income before tax in Q2 of $19.0 million; up ~45% Y/Y
- Q2 originations up ~45% Y/Y
- Q2 floorplan assets (“FP”) at ~$280 million
- Triad fully funded for 2022/2023
- Blackstone partnership launched in Q1
- Triad raising adjusted operating income before tax guidance from $62 – $70 million to $70 – $75 million for 2022
Q2 approvals +27.5% (units); originations +45.3% ($)
- Expanded funding partners, loan menu and floorplan leading to increased market share
- 530+ communities YTD have signed with Triad’s expanded product offerings
- Growing partner base continues to drive more volume across all products
- Floorplan balances up to $280 million; Q2 yield ~9.0% including fees
- Land home pipeline at record $296 million at June 30
- Q2 Core Chattel origination growth of ~39%
- Strong originations driving growth in the managed portfolio which increases recurring servicing revenues
- Managed assets +33% Y/Y in Q2
- More than 80% of managed assets are now fully serviced by Triad
MH Affordability Driving Shipments
- MH is an affordable housing solution for home buyers
• MH monthly payment is only ~40% of a traditional mortgage
• PTI is less than ½ that of traditional mortgages
• Affordability driving demand; shipments accelerating
• YTD MH shipments +14%; May +22% Y/Y, June +21% Y/Y
• In comparison, total existing home sales (units) -5% YTD and new home sales (units) -13% YTD
• 2022 is on track for shipments in excess of 123K +16% Y/Y and the fastest shipment growth since 1994
Recent Manufacturer Commentary, Per Triad/ECN
Skyline Champion (SKY-NYSE)1
- “… From an industry standpoint, demand remains healthy as rising rental rates, higher interest rates, and inflationary pressures are intensifying the need for affordable housing. The current environment has increased the awareness of our housing solutions….”
- “… we are seeing traditional site-built home buyers, moving into our more value-oriented factory-built home solutions…”
- “…the community REITs continue to want more and more product…”
- “… the consumer cancellations in the backlog have been minimal. I mean I don’t even receive detailed reports on it because it’s minor…”
- “… we continue to convert more traditional site-built buyers to our two or more affordable housing solutions. A trend that should continue in this economic climate…”
Cavco Industries (CVCO-NASDAQ)2
- “… first-time buyers are increasingly turning to manufactured housing as an alternative to site built homes…”
- “… manufactured housing is an option buyers might not have considered in the past. However, now they are and they’re finding attractive energy efficient and high-quality homes that meet their needs…” • “… there are still some constraints in retail and placing homes…”
- “… I mean communities are a real source of strength right now…”
- “… I really expect the communities to be a source of strength for the business going forward and they’re not showing any signs of slowing down…”
CONSISTENT CREDIT PERFORMANCE
• No change to credit performance
• Triad Core portfolios maintaining low 30+ day delinquency levels
• Net charge-offs remain near cyclical lows
The screen captures of several of those slides from ECN Capital on Triad’s performance and market insights that are shown above are posted below.
Additional Insights with More MHProNews Analysis and Commentary in Brief
There is a wealth of insights from the above that relates to several issues that have been percolating in the manufactured home industry, in some cases, for numbers of years. For instance, when Triad’s credit performance has remained stable despite COVID19 and economic turmoil, that is a signal that lending in the manufactured home space can and does perform well. MHProNews and/or MHLivingNews have made that point for years. It should mean, for example, that the feds should tweak the FHA Title I program and remove what the Manufactured Housing Association for Regulatory Reform (MHARR) calls the onerous and “egregious” 10/10 rule.
Similarly, MHARR has consistently pointed to the facts and evidence that reveal that the Federal Housing Finance Agency, Fannie Mae, and Freddie Mac are failing to perform under their respective Housing and Economic Recovery Act (HERA) of 2008 mandates. Consider this statement from MHARR, below, which has not yet been unpacked by MHProNews. More on their topic is planned for the days ahead.
Nor is it just Triad Financials’ performance, or similar finance-focused commentary from MHARR that make it clear that manufactured home lending can and does perform well. Kevin Clayton, with Berkshire Hathaway owned Clayton Homes – commenting to Congress under truth in testimony certification – said that they have demonstrated to the FHFA and GSEs that manufactured home lending performs well. Given that Clayton’s sister brands, 21st Mortgage Corporation and Vanderbilt Mortgage and Finance (VMF) ‘buyer deeper’ than Triad generally does, it is evidence that the GSEs could be providing sustainable access to the secondary market based on such data.
Additionally, David Dworkin, currently the president and CEO of the National Housing Conference (NHC) – of which the MHI is a member – has said he has full confidence the GSEs could be successfully providing this Congressionally mandated function in a sustainable fashion. Keep in mind Dworkin was a former VP for Fannie Mae.
The troubling fact that MHInsider, generally pro-MHI blogger George F. Allen, ManufacturedHomes blog, Kurt Kelley’s MHReview and other industry ‘trade publishers’ routinely fail to provide their readers with a similar degree of facts, evidence, and analysis may explain why MHProNews apparently dominates with industry readers. No one else has the chutzpah, or perhaps the evidence, to make the factual statement that this publication can. Namely, that in an underperforming industry that is a fraction of its size at the turn of the 21st century, MHProNews experiences over a million pageviews monthly, per Webalizer. In an industry that MHI has said has only 75,000 full time professionals, that is a stunning level of engagement that is occurring here. Our ManufacturedHomeLivingNews sister site also gets millions of pageviews annually, also per Webalizer.
But the manufactured home finance aspect and related are just one of several possible common-sense and evidence-based takeaways from Triad’s report. Additional insights from them should be compared by readers to those found in the facts, analysis and commentary in the most recent reports, linked below.
There are reams of third-party data that make it clear that manufactured housing is underperforming. That underperformance could be addressed if the apparent failures at MHI were addressed. More on that in the reports below and in new revelations that lie ahead. Stay tuned.
Next up is our daily business news recap of yesterday evening’s market report, related left-right headlines, and manufactured housing connected equities.
The Business Daily Manufactured Home Industry Connected Stock Market Updates. Plus, Market Moving Left leaning CNN and Right-leaning (Newsmax) Headlines Snapshot. While the layout of this daily business report has been evolving over time, several elements of the basic concepts used previously are still the same. For instance. The headlines that follow below can be reviewed at a glance to save time while providing insights across the left-right media divide. Additionally, those headlines often provide clues as to possible ‘market-moving’ news items.
Market Indicator Closing Summaries – Yahoo Finance Closing Tickers on MHProNews…
Headlines from left-of-center CNN Business – from the evening of 8.19.2022
- Fall from grace
- Dan Price of Gravity Payments in Seattle, March 27, 2019.
- CEO famed for higher pay advocacy exits after sexual assault allegations
- America just got a $100-a-month raise
- America’s small businesses are running out of workers
- Walmart is expanding abortion coverage for employees
- Has the bear market really gone into early hibernation?
- Russia will once again shut off Europe’s gas via Nord Stream 1 pipeline
- Russia’s version of Starbucks reopens with a new name and logo
- Opinion: Late-night television’s golden age is over
- Meta suspends anti-vaccine group led by RFK, Jr.
- The cord has been cut. Streaming is more watched than cable
- Mortgage rates drop
- You should probably update your Apple devices right now
- Kohl’s has an inventory mess on its hands
- The Regal Cinema marquee in Times Square reads, "48 states have reopened theaters safely. Why not New York, Governor Cuomo? #ReopenOurCinemasNY" on October 18, 2020 in New York City. Regal Theaters announced that they will close all 536 locations until further notice following major movie release cancellations. The pandemic has caused long-term repercussions throughout the tourism and entertainment industries, including short-term and permanent closures of historic and iconic venues, and costing the city and businesses billions in revenue.
- The world’s second biggest movie theater chain is in trouble
- Bugatti reveals its last gas-only car it hopes will be the world’s fastest convertible
- McDonald’s is bringing a British hit to the US
- MARKETS
- LAYOFFS
- A woman walks in front of a Peloton store in Manhattan on May 05, 2021 in New York. Peloton company has recalled both of its treadmill models after the death of a 6-year-old child and been received 72 reports of adults, children, pets injured, the company and the US Consumer Product Safety Commission announced.
- Peloton is cutting jobs, closing stores and hiking prices
- Warby Parker is slashing jobs as inflation takes a toll
- Opinion: Why a recession might not mean huge job losses
- Walmart is laying off corporate employees
- Robinhood to cut 23% of its workforce, revenue sinks
- MEDIA
- A detail look of a Big Ten microphone during the 2022 Big Ten Conference Football Media Days at Lucas Oil Stadium on July 26, 2022 in Indianapolis, Indiana.
- The Big Ten Conference signs media rights deal worth $1 billion a year
- Netflix sues creators of unofficial Bridgerton musical
- The 9 p.m. cable news hour is primed for reinvention
- Walmart+ has an Amazon Prime Video competitor
- Black entertainment mogul calls for more inclusion
Headlines from right-of-center Newsmax 8.19.2022
- Nation’s Largest Employer, Walmart, Expands Abortion Coverage for Employees
- In a memo sent to employees on Friday, the company said its health care plans will now cover abortion for employees “when there is a health risk to the mother, rape or incest, ectopic pregnancy, miscarriage or lack of fetal viability.” Since the Supreme Court’s overturning of the abortion landmark Roe v. Wade, states and businesses have been setting their own abortion laws and policies, often conflicting with one another. Until now, though, Walmart has been largely silent on the matter. [Full Story]
- Raid on Trump’s Mar-a-Lago
- Stewart to Newsmax: Raid Affidavit Will Be ‘Severely Redacted’ | video
- Trump Attorney Bobb to Newsmax: Redacted Affidavit Will Be ‘Almost Nothing’ | video
- Alina Habba to Newsmax: Little Faith in What DOJ Redactions to Raid Affidavit Will Yield | video
- Polls: FBI Search of Mar-a-Lago Has Amped Up GOP Voters for Midterms
- Giuliani to Newsmax: Trump Raid Part of Continuous ‘Conspiracy’ to Get Trump | video
- Reschenthaler: DOJ Redacted Affidavit Leaves More Questions Than Answers | video
- Judge Appears Willing to Unveil Some of Mar-a-Lago Affidavit
- Randy Weber: Trump Wants ‘Transparent’ Affidavit | video
- Dick Morris to Newsmax: Dems ‘Abandoned Political Process’ on Trump | video
- Enes Freedom: Sacrificing NBA Career for Human Rights ‘Bigger Than Basketball’ | video
- Eric Trump: ‘Trump Party’ Holds Great Appeal to America First Voters | video
- Don Jr.: Liz Cheney’s Big Grift | video
- Hogan Gidley: Cheney Failed to Represent Wyoming Values | video
- Donalds: Wyoming GOP Voters Don’t Want ‘Grandstanding’ Liz Cheney | video
- Waltz: Afghan Pullout ‘Coldhearted,’ ‘Incompetent’ | video
- Newsfront
- Nehls’ Legislation Aimed at Stopping ‘Known Terrorists’ at Border
- Troy Nehls has introduced legislation to improve border security and speed up deportations by aiming for the numbers of people who are included on the terrorist watchlist and who are making their way into the United States, saying that Americans deserve to know who is entering the country. … [Full Story]
- Conservatives Slam CNN For Framing Gas Price Drop as ‘Pay Raise’
- Conservative commentators on Twitter took issue with a new CNN [Full Story]
- State Department Issues Travel Advisory for Mexico
- The U.S. State Department this week issued a travel advisory for [Full Story]
- Ukrainian President Volodymyr Zelenskyy is being criticized after he [Full Story]
- Yellen: Recession Unlikely … but Don’t Look for Relief at the Gas Pump Anytime Soon
- Erdogan Warns of ‘Another Chernobyl’ After Talks in Ukraine
- UK: Russia Bombarding Kharkiv to Keep Ukraine From Using Forces Elsewhere
- Doctors Stay in Ukraine’s War-Hit Towns: ‘People Need Us’
- Biden Administration Readies About $800M in Additional Security Aid for Ukraine: Sources
- Newsmax to Host New Hampshire GOP Senate Debate at Saint Anselm
- Newsmax is hosting a live New Hampshire Republican Primary Debate at [Full Story]
- Islamic State ‘Beatle’ Gets Life Term for US Hostage Deaths
- British national El Shafee Elsheikh was sentenced to life in prison [Full Story]
- Jobs’ Apple-1 Computer Prototype Auctioned for Nearly $700K
- An authenticated Apple-1 Computer prototype from the mid-1970s has [Full Story]
- Are New US Missile Defense Plans Too Little, Too Late?
- Pentagon plans to defend Guam – the westernmost American foothold – [Full Story] | Platinum Article
- Walmart Expands Abortion Coverage for Employees
- Walmart, the nation’s largest employer, is expanding its abortion [Full Story]
- What Is Liz Cheney’s Endgame?
- After Rep. Liz Cheney’s decisive and embarrassing GOP primary loss in [Full Story] | Platinum Article
- Video Report: 21 People Killed, 33 Injured in Bombing at Mosque in Kabul
- 21 people killed and 33 injured in a bombing at a mosque in Kabul, [Full Story]
- San Francisco’s BART Police Drops ‘Excited Delirium’ Term From Manual, Writeups
- The San Francisco-based Bay Area Rapid Transit (BART) police [Full Story]
- Video Report: Israel Warns Biden on New Iran Nuclear Deal
- Israeli Prime Minister Yair Lapid is warning President Joe Biden that [Full Story] | video
- Appeals Court: DOJ Must Release Memo on Trump Prosecution
- The Department of Justice must release the secret memo it prepared in [Full Story]
- Marvel Star Speaks Out Against LA’s Spiraling Crime After Boxing Trainer Shot Dead
- Marvel star Frank Grillo has condemned the rising crime rate in Los [Full Story]
- Rick Scott, R-Fla. is calling for the Senate Homeland Security [Full Story]
- Georgia DA Asks Court Not to Delay Sen. Graham’s Grand Jury Testimony
- Georgia DA Asks Court Not to Delay Sen. Graham’s Grand Jury Testimony
- Fulton County, Georgia, District Attorney Fani Willis said any [Full Story]
- Buttigieg Warns Airlines on ‘Unacceptable’ Travel Disruptions
- Transportation Secretary Pete Buttigieg has urged the 10 largest U.S. [Full Story]
- Brad Pitt Foundation Settles Post-Katrina Homes Lawsuit
- Actor Brad Pitt and his Make It Right Foundation settled a lawsuit [Full Story]
- Judge Issues Injunction Blocking Biden From Pausing Oil, Gas Drilling
- A permanent injunction has been issued by a judge in Louisiana [Full Story]
- North Korea Tells South Korean President to ‘Shut His Mouth’ After Offer of Aid
- North Korea’s Kim Yo Jong, the powerful sister of leader Kim Jong Un, [Full Story]
- ISIS ‘Beatle’ Faces Life Sentence for US Hostage Deaths
- A member of the notorious Islamic State kidnap-and-murder cell known [Full Story]
- North Korea Confirms Missile Test, Says South Korea Missed Location
- North Korea has confirmed that it has conducted a missile test but [Full Story]
- Zelenskyy Warns of ‘Catastrophic Consequences’ Over Russia’s Shelling of Power Plant
- Ukrainian President Volodymr Zelenskyy on Thursday warned of [Full Story]
- Episcopal Church Backs ‘Gender Affirming Care’ for All
- The Episcopal Church backed the ability of people of any age to seek [Full Story]
- Report: Texas Funeral Home Will No Longer Accept Bodies of Migrants
- A Maverick County, Texas, funeral home director is no longer [Full Story]
- Abortion Drug Maker Drops Lawsuit Against Mississippi
- A manufacturer of the drug used in medication abortions Thursday [Full Story]
- Taiwan Envoy: ‘We Need Friends’ to Protect From China Bullying
- Bi-khim Hsiao, Taiwan’s highest-ranking official based in the United [Full Story]
- Polls: FBI Search of Mar-a-Lago Has Amped Up GOP Voters for Midterms
- After former President Donald Trump said the FBI search of his [Full Story]
- Russia Deploys Hypersonic Missiles Along Baltic Sea
- Russia has deployed aircraft armed with hypersonic missiles along the [Full Story]
- Judge Issues Injunction Blocking Biden From Pausing Oil, Gas Drilling
- A permanent injunction has been issued by a judge in Louisiana against President Joe Biden’s moratorium on new oil and gas leasing on federal land in 13 states…. [Full Story]
- Buffett Wins OK to Buy 50% Occidental Stake
- Nielsen to Rate NFL Football on Amazon Prime
- Walmart Expands Abortion Coverage for Employees
- Stocks Fall Broadly, S&P 500 Set to Break Winning Streak
- US Announces 1.8 Million Additional Monkeypox Vaccine Doses Starting Monday
- The United States will boost its supply of monkeypox vaccine by making an additional 1.8 million doses of Bavarian Nordic’s Jynneos vaccine available for ordering starting Aug. 22, the White House said on Thursday. The U.S. Department of Health and Human Services (HHS) will…… [Full Story]
- How to Go Gray Gracefully While Keeping a Youthful Glow
- Advanced Cervical Cancer Cases Keep Rising Among US Women
- Major Gene Study Spots DNA Tied to Autism, Other Disorders
- Most Americans Do Not Get Enough Vitamin E
MHProNews has pioneered in our profession several reporting elements that keep our regular and attentive readers as arguably the best informed in the manufactured housing industry. Among the items shared after ‘every business day’ (when markets are open) is our left-right headline recap summary. At a glance in two to three minutes, key ‘market moving’ news items are covered from left-of-center CNN Business and right-of-center Newsmax. “We Provide, You Decide.” © Additionally, MHProNews provides expert commentary and analysis on the issues that others can’t or won’t cover that help explain why manufactured housing has been underperforming during the Berkshire era while an affordable housing crisis and hundreds of thousands of homeless in America rages on. These are “Industry News, Tips, and Views Pros Can Use” © features and others made and kept us the runaway #1 in manufactured housing trade publisher for a dozen years and counting.
Manufactured Housing Industry Investments Connected Equities Closing 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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- 2022 …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 have completed over a dozen years of serving the industry as the runaway most-read trade media.
- 2022 …Berkshire Hathaway is the parent company to Clayton Homes, 21st Mortgage, Vanderbilt Mortgage and other factory-built housing industry suppliers.
Sample Kudos over the years…
It is now 12+ years and counting…
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 MHProNews.
Tony earned a journalism scholarship along with numerous awards in history. There have been several awards and honors and also recognition 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.
