In a pre-dawn exclusive, the New York Post cited investigations in New Jersey by state regulators “since at least May” of 2018. They noted that “Applied Underwriters, which was accused of “bait and switch” marketing tactics by California officials in 2017, illegally altered its contracts with customers to boost the fees it was charging, according to a May 18 letter to the company from the New Jersey Department of Business and Insurance.”
That’s significant, but what comes with it could signal the next bombshell for manufactured housing professionals. Note the company named at the end of the next sentence?
“The fracas puts Applied in a growing league of companies substantially owned by Buffett’s $500 billion Berkshire holding company to come under scrutiny by regulators, including Wells Fargo and mobile home company Clayton Homes.”
While others in media are covering related issues, MHProNews continues to be virtually solo in manufactured housing industry trade media – other than the Manufactured Housing Association for Regulatory Reform or MHARR – at raising concerns about the regulatory and other legal concerns by the dominating companies in manufactured housing. Those dominating firms are in the Knoxville, TN metro. Their purported puppet trade association is based in Arlington, VA. It’s the Manufactured Housing Institute.
As an example of mainstream media reports, there is this one from Clayton’s hometown Knoxville media, which spotlighted issues previously reported by MHProNews or others. But why by no one else in the manufactured housing industry trade media? Can you spell, industry echo chamber? Have you seen the Sharyl Attkisson report on media manipulation, linked here?
While some in mainstream media have spoken to MHProNews about the exclusive report linked below, so far others have not yet published on that specific topic. But federal officials reportedly have per federal sources to MHProNews, been looking at issues like those reported below.
Bridging Gap$, Affordable Housing Solution Yields Higher Pay, More Wealth, But Corrupt, Rigged Billionaire’s Moat is Barrier – manufacturedhomelivingnews.com
America woke up today to division. But perhaps 75 percent (+/-) of the nation’s people could come together on a plan that demonstrably could do the following. Increase the U.S. Gross Domestic Product (GDP) by some $2 Trillion Annually, without new federal spending.
Back to the NY Post
“But analysts say the company’s legal woes are also to blame. “The reason for vacating [Applied] is because of these regulatory issues and headaches,” said Greggory Warren, a Morningstar analyst, told The Post.
But the very mention of Clayton Homes and Wells Fargo in the same report suggests that the apparently still waters are in fact bubbling beneath the surface of federal and other legal investigations.
An attorney investigating certain manufactured home industry practices told MHProNews just last week that Chairman Warren Buffett’s Berkshire Hathaway had hired an antitrust attorney. That same legal source said that antitrust attorney left not long after. That claim has yet to be independently confirmed, but the legal source was confident in the claim.
Keep in mind that the Securities and Exchange Commission (SEC) would not ‘confirm or deny’ allegations that they are investigating possible collusion involving former Clayton Homes division president, Joe Stegmayer, who went to Cavco Industries (CVCO). Cavco are under a legal cloud with numerous plaintiffs attorneys circling their operation, see a related report, further below the byline and notices.
The New York State Attorney General’s office referred a complaint involving the reported information linked here to the Consumer Financial Protection Bureau or CFPB.
While 21st Mortgage Corp’s attorney denies the charges, that same attorney did not deny the authenticity of the documents and quotes referenced. A careful read of the 21st attorney’s record, which is part of the report linked below, suggests it was a non-denial denial. As in, ‘There’s nothing to see here, so, please, please, please move on.’
Senator Elizabeth Warren (MA-D) 2020 presidential campaign signaled an interest in the information in this previously linked report. While Warren is a ‘dark horse’ candidate in the eyes of some for the Democratic presidential nomination, her profile rose when she called for antitrust action against big tech. Warren’s previously spoken at length about her antitrust positions, and it would be no surprise if Warren picked up the Clayton Homes and related antitrust issue too.
MHProNews will continue to monitor and report on these developments. The exclusive New York Post report is linked here.
Stay tuned, because there are several ways that issues first reported here on MHProNews could break into the mainstream. To keep up with the latest, sign up for our industry leading headline news, typically delivered to your inbox twice weekly. For more Omaha-Knoxville-Arlington axis related reports, scowl further below the bylines and offers. “We Provide, You Decide” © on MH “Industry News, Tips, and Views that Pros Can Use.” © ## (News, analysis, commentary.)
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