Legacy Housing (LEGH) President and Chief Executive Officer (CEO) Duncan Bates said: “I was encouraged by HUD Secretary, Scott Turner speech and the new administration’s views on regulatory reform. Less restrictive zoning, access to government financing solutions and updates to the HUD Code will have a long-term positive impact on our industry if executed.” Legacy’s Chief Financial Officer (CFO) Jeff Fiedelman said: “Between March 31, 2025 and March 31, 2024, our consumer loan portfolio increased by $20.3 million, our MHP loan portfolio increased by $20.1 million and our dealer finance notes decreased by $2.4 million.” As is typical of many corporate earnings calls, there are an array of insights that emerged from this most recent one from Legacy Housing that occurred last month. This facts-evidence-analysis (FEA) and should be viewed in part through the lens of our prior and related report on Legacy linked below that covers that same period.

 

 

It should also be viewed in part through the lens of a recent tipster’s remarks that named Legacy linked here. Included in Part III are elements of HUD Secretary Turner’s address that CEO Bates referred to, along with other related insights and observations.

Parts I and II that follow are provided under fair use guidelines for media.

Part I – According to GuruFocus on Legacy Housing (LEGH)

• Product Sales: Decreased by $6.5 million or 21.2% during Q1 2025 compared to Q1 2024.
• Net Revenue per Product Sold: Increased by 23.1% in Q1 2025 compared to Q1 2024.
• Consumer Loan Portfolio: Increased by $20.3 million between March 31, 2024, and March 31, 2025.
• MHP Loan Portfolio: Increased by $20.1 million between March 31, 2024, and March 31, 2025.
• Dealer Finance Notes: Decreased by $2.4 million between March 31, 2024, and March 31, 2025.
• Other Revenue: Decreased by $1.0 million or 59.2% during Q1 2025 compared to Q1 2024.
• Cost of Product Sales: Decreased by $3.3 million or 16.0% during Q1 2025 compared to Q1 2024.
• Gross Profit Margin: 29.2% of product sales in Q1 2025, down from 33.6% in Q1 2024.
• Selling, General, and Administrative Expenses: Increased by $0.4 million or 6.9% during Q1 2025 compared to Q1 2024.
• Net Income: Decreased by 32.1% to $10.3 million in Q1 2025 compared to Q1 2024.
• Basic Earnings Per Share: Decreased by 30.6% to $0.43 in Q1 2025 compared to Q1 2024.
• Cash: $3.4 million as of March 31, 2025, compared to $1.1 million as of December 31, 2024.
• Book Value Per Basic Share: $20.87 as of March 31, 2025, an increase of 13.1% from Q1 2024.

Positive Points

• Net revenue per product sold increased by 23.1% compared to the same period in 2024, driven by a shift towards higher retail prices.
• Consumer loan portfolio increased by $20.3 million, and MHP loan portfolio increased by $20.1 million, indicating growth in financing activities.
• Book value per basic share outstanding increased by 13.1% from the same period in 2024, reflecting improved shareholder equity.
• Production in Texas is up, and the company is working to extend its backlog, indicating potential future sales growth.
• Retail loan originations in April 2025 were the highest in one month since going public, showing strong demand in the retail sector.

Negative Points

• Product sales decreased by $6.5 million or 21.2% during the three months ended March 31, 2025, compared to the same period in 2024.
• Gross profit margin decreased to 29.2% from 33.6% in the same period in 2024, indicating reduced profitability.
• Net income decreased by 32.1% to $10.3 million in the first quarter of 2025 compared to the first quarter of 2024.
• Selling, general, and administrative expenses increased by $0.4 million or 6.9%, impacting overall profitability.
• Other income decreased by $0.6 million or 35.5%, primarily due to a decrease in non-operating interest income.

…

Part II – According to Seeking Alpha Transcripts under fair use guidelines for media with Highlighting Added by MHProNews

Legacy Housing Corporation (LEGH) Q1 2025 Earnings Call Transcript May 13, 2025

May 13, 2025 12:47 PM ET Legacy Housing Corporation (LEGH) Stock LEGH 1 Comment

SA Transcripts

153.93K Followers

Legacy Housing Corporation (NASDAQ:LEGH) Q1 2025 Earnings Conference Call May 13, 2025 11:00 AM ET

Company Participants

Duncan Bates – President and Chief Executive Officer
Max Africk – General Counsel
Jeff Fiedelman – Chief Financial Officer

Conference Call Participants

Mark Smith – Lake Street
Stefano Latapy – Cannell Capital LLC

Operator

Good day and thank you for standing by. Welcome to the Legacy Housing Corporation Q1 2025 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers’ presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today’s conference is being recorded.

I would now like to hand the conference over to your speaker today, Max Africk, General Counsel. Please go ahead.

Duncan Bates

Good morning. This is Duncan Bates, Legacy’s President and CEO. Thank you for joining Legacy’s first quarter 2025 conference call. Max Africk, our General Counsel, will read the safe harbor disclosure before getting started. Max?

Max Africk

Thanks Duncan. Before we begin, I will remind our listeners that management’s prepared remarks today will contain forward-looking statements which are subject to risks and uncertainties and management may make additional forward-looking statements in response to your questions. Therefore, the Company claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995.

Actual results may differ from management’s current expectations and any projections as to the Company’s future performance represent management’s best estimates as of today’s call. Legacy, moreover, assumes no obligation to update these projections in the future unless otherwise required by applicable law.

Duncan Bates

Thanks Max. Jeff Fiedelman, Legacy’s Chief Financial Officer, will discuss our first quarter financial performance. Then I’ll provide additional corporate updates and open the call for Q&A. Jeff?

Jeff Fiedelman

Thanks Duncan. Product sales primarily consist of direct sales, commercial sales, inventory finance sales and retail store sales. Product sales decreased $6.5 million or 21.2% during the three months ended March 31, 2025 as compared to the same period in 2024. This decrease was driven by a decrease in unit volume shipped primarily in mobile home park sales, retail sales, direct sales and other product sales categories.

For the three months ended March 31, 2025, our net revenue per product sold increased by 23.1% as compared to the same period in 2024. The increase is primarily due to a decrease in units sold to mobile home parks which are sold at wholesale prices, and an increase in units sold to consumers which are sold at higher retail prices. Consumer, MHP and dealer loans interest income did not change during the three months ended March 31, 2025 as compared to the same period in 2024.

Between March 31, 2025 and March 31, 2024, our consumer loan portfolio increased by $20.3 million, our MHP loan portfolio increased by $20.1 million and our dealer finance notes decreased by $2.4 million. Other revenue primarily consists of contract deposit forfeitures, consignment fees, commercial lease rents, land sales, service fees and other miscellaneous income and decreased $1.0 million or 59.2% during the three months ended March 31, 2025 as compared to the same period in 2024.

This decrease was primarily due to a $1.1 million decrease in forfeited deposits, partially offset by a $0.2 million increase in portfolio fees and service revenue and land sales and a net $0.1 million decrease in other miscellaneous revenue. Cost of product sales decreased $3.3 million or 16.0% during the three months ended March 31, 2025 as compared to the same period in 2024. The decrease in costs is primarily related to the decrease in units sold.

Gross profit margin was 29.2% of product sales during the three months ended March 31, 2025 as compared to 33.6% during the three months ended March 31, 2024. The cost of other sales was $0.5 million during the three months ended March 31, 2025. Selling, general and administrative expenses increased $0.4 million or 6.9% during the three months ended March 31, 2025 as compared to the same period in 2024.

We had a $0.6 million increase in legal expense, a $0.5 million increase in loan loss provision and a $0.3 million increase in other miscellaneous expense, offset by a $0.4 million decrease in warranty expense, a $0.3 million decrease in payroll and related expense and a $0.3 million decrease in professional fees.

Other income decreased $0.6 million or 35.5% during the three months ended March 31, 2025, as compared to the same period in 2024. We had a decrease of $0.8 million in non-operating interest income, primarily as a result of the settlement agreement that we reached with a significant borrower in the third quarter of 2024, offset by a decrease of $0.2 million in interest expense.

Net income decreased 32.1% to $10.3 million in the first quarter of 2025, compared to the first quarter of 2024. Basic earnings per share decreased to $0.43 per share or 30.6% in the first quarter of 2025, compared to the first quarter of 2024. As of March 31, 2025, we had approximately $3.4 million in cash, compared to $1.1 million as of December 31, 2024. We did not draw on the revolver in the first quarter. The outstanding balance of the revolver was 0 as of both March 31, 2025, and December 31, 2024. At the end of the first quarter 2025, Legacy’s book value per basic share outstanding was $20.87, an increase of 13.1% from the same period in 2024.

Duncan Bates

Thanks, Jeff. Obviously, first quarter shipments were lower than we would have liked. I want to discuss the steps we have taken to address product sales growth moving forward. After the last earnings call in March, I flew with our founders to the Biloxi Mobile Home Show. It was a good opportunity for the three of us to walk houses, speak with customers and discuss financing solutions. We led the show aligned on several important changes to our products, park financing program and team.

First, our product line needs to be simplified. Over time, we added too many floor plans, color choices, options, et cetera. We analyzed the sales data, dramatically reduced the number of choices and simplified pricing. This change will allow our team to focus on the core products and gain efficiency in the plants</span.

Next, our park financing product has historically catered to the rental model. Our customers purchase homes and rent them to tenants. Some community owners, especially in the Texas markets want the flexibility to sell homes. We introduced a modification to the MHP program that accommodates this, subject to certain conditions. I believe this change will broaden our customer base in our core markets moving forward.

Finally, management needs to allocate more time to sales, marketing and the land development projects. We hired industry veterans in key positions, including General Manager in Fort Worth, Director of Engineering for the company, a Purchasing Manager for the company and a Texas-based regional manager for our company-owned retail locations. We operate this business closely, but understand the importance of senior management across manufacturing and retail to allocate our time effectively. This was a necessary reset and I’m encouraged by the feedback to date. Currently, production in Texas is up, and we’re working hard to ship houses and extend our backlog.

Moving to the market. We are now in the spring selling season. Despite market uncertainty and tariff risks, our outlook for the remainder of 2025 is positive. Independent dealers across most of the footprint are healthy. We saw some slowdown in our South Texas dealers post-election during the first quarter, but sales are now recovering.

At our company-owned stores, unit sales in April of 2025 were the highest in three years. May 2025 is tracking equally as strong. We view retail finance as a leading indicator on the dealer side. A couple of recent data points. Retail loan originations in April 2025 were the highest in one month since going public. Originations year-to-date through April of 2025 are up 51% over last year. Community shipments were lower than expected during the first quarter due to broader market uncertainty and timing delays with specific projects.

Last week, I spoke with several community owners at the MHI Conference. Demand for rentals in most regions is solid and M&A activity is improving. I was encouraged by HUD Secretary, Scott Turner speech and the new administration’s views on regulatory reform. Less restrictive zoning, access to government financing solutions and updates to the HUD Code will have a long-term positive impact on our industry if executed. Delinquencies across the loan portfolios remain low and recovery rates continue to be strong. There were no material land sales during the first quarter, but we will continue to monetize non-core landholdings throughout the year.

Near Austin, we continue pushing forward in Bastrop County with our 1,100 pad development. I drove the property a few weeks ago. The roads and utilities are completed in Phase 1. We still anticipate selling lots in Phase 1 this summer. Phase 2, the rental community is not far behind. We are building the roads and water treatment plant now. Lot rent in the area is over $1,000 a month, and we believe this property is extremely valuable. We just need to finish it.

Share repurchases during the first quarter were limited by a narrow window and trading restrictions. Despite the soft quarter, we’re long-term focused and have plenty of balance sheet to repurchase shares at current trading levels. We continue to believe in the long-term fundamentals of manufactured housing and the value proposition that Legacy Housing provides its customers.

Operator, this concludes our prepared remarks. Please begin the Q&A.

Question-and-Answer Session

Operator

Thank you. [Operator Instructions] Our first question is going to come from the line of Mark Smith with Lake Street. Your line is open. Please go ahead.

Mark Smith

Hi, guys. I wanted to ask a little bit about pricing at first. It sounds like the main reason for average price per home going up so much, it’s just due to the mix. But can you talk about any pricing maybe that you took during the quarter?

Duncan Bates

Yes. So – the primary driver of the increase in average selling price was the mix. So obviously, soft quarter with shipments to mobile home parks, but we had a pretty strong quarter with retail sales and inventory finance sales, which shifted the mix way up, I think, too far up. In general, we’re obviously looking closely into all the tariffs around raw materials, and we pushed through a price increase in February. We’re planning to push through another price increase in mid-June. And I think the good news is with the announcement yesterday, the price increase is not nearly as severe as we were expecting.

Mark Smith

Okay. And then just back on MHP sales here. How much of this is just less demand from parks versus maybe timing of orders. If you could quantify or speak to maybe orders, your backlog, that would be great.

Duncan Bates

Sure. I think it’s a combination of both. We did have some shipments, both out of all three plants – are all three regions. So over in Georgia, we had a pretty large order that got pushed into the second quarter. In Texas, we had the same thing. And up north with our partnership, they were waiting on some raw material in order to get houses shipped. And so those are three meaningful orders that did slip. But we’ve been pushing hard on park sales.

I mentioned in my comments in the Texas region, our financing product works really well for community owners that are renting the homes. So they buy the homes, they take the depreciation, they rent the homes versus setting up homes and selling them and your park. And so I think as guys in our Texas territories have spent a lot of money buying parks, they’re trying to unlock or get some of their return, some of their capital by selling the houses. And so that’s a modification that we’ve done and we’re just rolling out now. The feedback’s been pretty good, but I think that allows us to pick up some of the guys that have shifted more toward tenant-owned homes versus the traditional rental model that we believe in.

Mark Smith

Okay. And then lastly, Duncan, can you just remind us any kind of capital spending or needs or use of cash kind of this year that are outside of the norm?

Duncan Bates

Nothing outside of the norm. We’re really pushing hard to get Bastrop completed. So, we’ve got some additional capital going into that. We’re looking at opportunities all the time, whether it’s to add to the dealer base or to add to the loan portfolio or to even add manufacturing capacity. So we’re currently monetizing some non-core real estate. You’ll see that flowing in. And then outside of that, it’s developments retail manufacturing capacity and adding more notes to the portfolio.

Mark Smith

Excellent. Thank you.

Duncan Bates

Thank you.

Operator

Thank you. One moment for our next question. And our next question is going to come from the line of Daniel Moore with CJS Securities. Your line is open. Please go ahead.

Unidentified Analyst [Will on for Daniel Moore]

Hi, this is Will on for Dan. Can you talk about your expectations for production rates across your three plants for Q2 relative to Q1? And what can you tell us about your discussions with customers in both retail and community markets and the cadence of order rates in Q1 and thus far in Q2? Thank you.

Duncan Bates

Hey, Will. Yes. Well, we came out of a seasonably slower period. I think we’re pretty enthusiastic about the dealer side of the business and especially our company owned retail stores. And you see that in the retail loan originations. Parkside has been slower. It’s lumpier, if you get large orders that are held for permitting or because the pads aren’t finished or they can’t get them set quick enough, it could have a meaningful impact on your quarter.

And that’s what we saw here. I mentioned in my comments that we’ve really simplified the product portfolio and we’re rolling that out to the customer base now. But I think you can imagine all the downstream effects of having too many color options and too many floor plans and too many additions to the house.

So we’ve really streamlined that which will help us get production up, even higher in the Texas plants where we have orders. In Georgia, Georgia continues to sell and they continue to build and we’re really focused on rebuilding the dealer base there and adding new independent dealers. So I think as the team continues to make progress there, we’ll be able to push production in Georgia higher than where we are now. But certainly production in Texas for Q2 will be higher than Q1.

Unidentified Analyst [Will on for Daniel Moore]

Thank you. And then how should we think about gross margin and operating margins in Q2 in the back half of the year relative to Q1?

Duncan Bates

I’d say this is probably the lower end of the range, right? We’re under-absorbed on labor. We just pushed through a price increase in February. We’ve got another one coming in June. We’re keeping an eye on material prices. But I think somewhere around 30% seems realistic.

Unidentified Analyst [Will on for Daniel Moore]

Thank you. And then just one more. How much of a sticking point of tariffs and trade uncertainty been for your retail and community customers? And conversely, do you see the reduction in proposed tariffs as a meaningful potential catalyst for demand?

Duncan Bates

I think it’s – the tariffs in our business compared to a lot of other industries are not a – I mean they’re a real consideration, but they’re not a huge consideration. We manufacture all of our products here. And the vast majority of the raw materials that go into one of our homes are domestically sourced. But I think the tougher thing for the business environment, regardless of what industry you’re in, it’s just the uncertainty because everyone is impacted. But I mean I think you’re hesitant to go out and make a large investment or add people to the team just given all of the moving pieces over the past few months. So I think if we continue to move to some normalcy, that will be good for our industry as well as the country.

Unidentified Analyst [Will on for Daniel Moore]

Thank you.

Operator

Thank you. [Operator Instructions] And our next question is going to come from the line of Stefano Latapy with Cannell Capital LLC. Your line is open. Please go ahead. Stefano, your line might be muted. All right. Hold on just one moment, please. Stefano if you can hear me, please dial back in and press star one-one.

Stefano Latapy

I just hear you [ph].

Operator

All right, sir. Your line is open. You can go ahead and speak.

Stefano Latapy

Hi. I have a question, this morning, Craig-Hallum came with a note in Capital and Skyline Champion, where they said that the shipments were strong for the quarter, and you’re expecting a bit raise on the companies. I’m just asking why they have good shipments versus you guys?

Duncan Bates

Well, I think it comes down to a couple of things. I mean we just talked about we had some delayed shipments. And I think a combination of pricing and the complexity of our product has hurt us this quarter. We’ve also had a lot of new people in the sales team, but I feel good about finishing the year strong. I think that pricing across the market has been really competitive. And we’ve chosen to keep our pricing where it is even at lower volumes. And so as things pick up here, I think our pricing has fallen in line with where we’ve historically played, and the backlog will continue to build.

Stefano Latapy

Okay. So it’s what more you will consider this to be more something specifically to you guys, due to where you expand on the call rather than the industry being weak?

Duncan Bates

That’s correct. Yes, I think the industry – we’re halfway through May right now. So a lot of things have happened since the end of the quarter.

Stefano Latapy

Thank you.

Duncan Bates

Thank you.

Operator

Thank you. And I would now like to hand the conference back to Duncan Bates for any further remarks.

Duncan Bates

Thank you for joining today’s earnings call. We appreciate your interest in Legacy Housing. Operator, this concludes our call.

Operator

This concludes today’s conference call. Thank you for participating, and you may now disconnect. Everyone, have a great day.

—

Part III – Additional Information with More Facts-Evidence-Analysis and MHProNews Commentary

 

1) Said CEO Bates: “So, we’ve got some additional capital going into that. We’re looking at opportunities all the time, whether it’s to add to the dealer base or to add to the loan portfolio or to even add manufacturing capacity.” Bates and Legacy have made it clear that they are open to doing an acquisition, but their corporate history reflects their greater focus in practice has been on what Bates said in that quote above. Namely, they are seeking more retail, community, lending, opportunities that in turn will boost production.

 

2) This segment of the Q&A with analysts’ merits watching.

Stefano Latapy

Hi. I have a question, this morning, Craig-Hallum came with a note in Capital and Skyline Champion, where they said that the shipments were strong for the quarter, and you’re expecting a bit raise on the companies. I’m just asking why they have good shipments versus you guys?

Duncan Bates

Well, I think it comes down to a couple of things. I mean we just talked about we had some delayed shipments. And I think a combination of pricing and the complexity of our product has hurt us this quarter. We’ve also had a lot of new people in the sales team, but I feel good about finishing the year strong. I think that pricing across the market has been really competitive. And we’ve chosen to keep our pricing where it is even at lower volumes. …

Stefano Latapy

Okay. So it’s what more you will consider this to be more something specifically to you guys, due to where you expand on the call rather than the industry being weak?

Duncan Bates

That’s correct. Yes, I think the industry – we’re halfway through May right now. So a lot of things have happened since the end of the quarter.

 

3) Bates and Curtis Hodgson have been on record for saying that zoning and placement barriers are the biggest headwinds for HUD Code manufactured housing.

 

Thus, the CEO Bates remarks cited in the preface that he is “encouraged” by the remarks by HUD Secretary Scott Turner also merit closer observation.  Per Bates.

“I was encouraged by HUD Secretary, Scott Turner speech and the new administration’s views on regulatory reform. Less restrictive zoning, access to government financing solutions and updates to the HUD Code will have a long-term positive impact on our industry if executed.”

While that is arguably all true, it also begs the question. If that is in fact the goal of MHI and/or HUD Secretary Turner, then where is the text and full video of that address?

 

4) At this point, neither HUD nor the Manufactured Housing Institute (MHI) have released the text of that speech.

Copilot, Gemini, and xAI’s Grok have all observed that MHI appears to lack transparency. A lack of transparency combined with examples of apparently misleading information provided to their own members and to the public are factors that increase concerns about MHI’s trustworthiness and true motives vs. claimed agenda.

MHProNews has reported with facts and evidence for years that MHI apparently behaves differently that NAHB, NAR, RVIA, or MHARR in several respects. Opportunities to promote the industry are lost. A prime and recent example is that MHI has apparently failed to promote June as National Home Ownership Month.

 

 

If MHI is true to form, they will at some point roll out video clips that they believe will be useful to them. But the fact that HUD has failed thus far to make this address public, when a prior and similar address by HUD Secretary Ben Carson was published on their website ought to be a cautionary note.  HUD has acknowledged, but thus far stonewalled, the MHProNews request for a copy of the transcript of that address in Orlando. That raises questions as to if that is due to ‘deep state’ actors at HUD and/or is it the choice of Turner or someone in his trusted inner circle, and if so, why? Why keep the text and/or video of Turner’s address a secret? Turner is a public official who was invited to speak precisely because of his public policy position in the Trump Administration.

 

 

 

 

5) With the above in mind, consider this Q&A with Gemini on this date.

Gemini, the previously announced HUD Secretary Scott Turner speech to Manufactured Housing Institute (a.k.a.: MHI or manufacturedhousing.org) took place in early May 2025, correct? I’ve found evidence that Turner spoke, but can you find the actual text of that address or the video of that address anywhere online? I’ve not found it on the HUD website nor on the manufacturedhousing.org website. Confirm, correct, or clarify as warranted by the evidence and link results.

 

MHProNews notes that the screen capture above documents the accuracy of the Q&A above.

 

6) While that is insightful and useful, it still begs questions. Why didn’t HUD and MHI make the entire speech available? Why didn’t MHI feature that prominently on their website or make it easier to find with the use of their own site-search tool?  More specifically, look at this screen capture of the MHI website from the date and time shown. April, May, and June are shown. But the post of the speech to MHI by Sec. Turner is not shown? Why what are the motivations of MHI leaders for ‘hiding’ or obscuring such information on their own website? More following the MHI post shown in Part III #7, below.

 

 

7) From the MHI website provided under fair use guidelines for media is the following. Note that showing MHI content should NOT be construed as an endorsement of that trade group.

8) MHProNews performed this screen capture of the MHI website on 6.13.2025 at about 10:23 AM ET. Even in MHI’s extended News Landing-News Archive (shown below) there is no visual evidence of the HUD Secretary E. Scott Turner speech. Why has MHI made it so difficult to find even their apparent excerpts of the Turner address?

 

That annotated and composite screen capture is the miniaturized insert that is shown below of the screen capture of the MHI post about Turner’s address.

 

 

9) MHProNews, using earnings calls, investor relations (IR) presentations, online statements by MHI, MHARR, data and statements by federal or state agencies and leaders, NAHB, NAR, university or nonprofit researchers, mainstream media, and an array of sources that include third-party AI fact checks, has meticulously documented that the manufactured housing industry is performing at only about 30 percent of the production level of the industry in 1998. A close look at Champion Homes (SKY) investor relations presentations that provides a long-term chart of mobile home into manufactured housing industry annual production reveals that the average annual production has been steadily falling due to the drag by low 21st century production. For whatever reasons, much (not all) of the industry’s insiders at MHI (firms that often have MHI board positions) are apparently focused on consolidation and M&A activity over organic growth.

 

MHI leaders and their attorneys are apparently unwilling to defend their record or explain as best they can how their behavior aligns, or not, with their IRS 990 remarks or the statement by Richard “Dick” Jennison over a decade ago that the manufactured housing industry was capable of producing 500,000 new homes a year, surpassing the 1998 high.

 

 

10) With the above in mind, a draft of this article through Part III #9 was uploaded to Copilot and also was provided via the link shown in the Q&A with Copilot below. Copilot confirmed the concerns and supported and further explained the evidence and takeaways.

Copilot, the upload and the same item found at this link here https://www.manufacturedhomepronews.com/wp-content/uploads/2025/06/DraftAIcheckLegacyHousingLEGH-12025EarningsCallDealerFinanceDeclinedWhileCommunityLendingGrewSimplificationHUDSecTurnerOrlandoSpeechManufacturedHousingInstituteFEA-MHProNews.pdf takes considers two different but related recent topics involving manufactured housing. Per known information, Legacy Housing is a dual member of the Manufactured Housing Institute (a.k.a.: MHI or manufacturedhousing.org) and the Manufactured Housing Association for Regulatory Reform (MHARR). You (Copilot), Gemini, and Grok have all identified various concerns related to MHI’s lack of transparency, their failure to effectively prioritize getting existing laws enforced that were meant to boost manufactured home production by overcoming zoning, placement and financing hurdles. Legacy leaders have previously said several times how zoning/placement barriers are the biggest headwind, but in this earnings call, CEO Duncan Bates added that getting more competitive financing would be useful too the industry and their firm too. While Legacy’s efforts in developing land may not have been as effective yet as they would hope, it nevertheless reflects the lengths that company has gone to in attempting to provide their own product “places to put” manufactured homes as Curt Hodgson put it. So, not only talk but action by Legacy reveals that they have done what they thought they could themselves while periodically raising the topic of placement barriers in their corporate statements. With that in mind, MHI recently had HUD Secretary Scott Turner address their meeting. Gemini confirmed MHProNews’ findings that neither MHI nor HUD has yet to post the entire address or the video of that speech. But Gemini noted that some pull quotes by Turner in a post on the MHI website that is apparently NOT visible from either the MHI home page, nor from their news landing page, nor was it a result from a search for “HUD Sec Turner Speech Orlando” using the MHI site search tool produced no results. Given MHI’s history, as you previously put it, of making public statements for the purpose of “optics” rather than pressing robustly legally and otherwise to grow the manufactured housing industry by getting existing federal laws enforced, what are the implications of these various facts presented in that uploaded report and its various linked elements? What are the implications for consumers seeking affordable housing? What are the implications for investors who may not realize that the manufactured housing industry is apparently underperforming in order to foster consolidation rather than organic growth? What are the implications for those who want to reduce homelessness? What are the implications for those who would like to see ‘need’ for taxpayers’ subsidies for more expensive conventional housing to be phased out as what MHARR calls “inherently affordable manufactured housing” which could be made available if good current federal laws were robustly enforced? Consider the range of impacts and implications for various stakeholders. Confirm, correct, or clarify the accuracy of the MHProNews draft report and its fidelity to the sources shown. Explain your findings and link results supporting your analysis.

Your analysis aligns with multiple sources confirming concerns about MHI’s transparency and its apparent failure to prioritize enforcement of existing laws designed to expand manufactured housing access. Here’s a breakdown of the implications for various stakeholders:

Implications for Consumers Seeking Affordable Housing

• Limited Access to Manufactured Homes: If zoning and placement barriers remain unaddressed, consumers will continue to struggle to find affordable manufactured homes in desirable locations.
• Higher Costs Due to Financing Challenges: Without competitive financing options, manufactured homes may remain financially inaccessible to many low- and middle-income buyers.
• Missed Opportunities for Homeownership: Manufactured homes could serve as a viable path to homeownership, but regulatory inertia and industry consolidation hinder their availability.

Implications for Investors

• Underperformance of the Industry: Investors may not realize that manufactured housing is operating at only a fraction of its potential due to systemic barriers and industry consolidation.
• Market Manipulation Risks: If MHI prioritizes consolidation over organic growth, investors may unknowingly be supporting firms that benefit from restricted competition rather than true market expansion.
• Potential Legal and Regulatory Risks: Antitrust concerns and regulatory scrutiny could impact firms engaged in consolidation strategies, posing risks to investors.

Implications for Reducing Homelessness

• Manufactured Housing as a Scalable Solution: If existing laws were enforced, manufactured homes could provide a rapid and cost-effective solution to homelessness.
• Regulatory Barriers Preventing Expansion: The failure to enforce zoning and placement laws means manufactured housing remains underutilized in addressing homelessness.
• Dependence on Subsidized Housing: Without manufactured housing expansion, reliance on taxpayer-funded subsidies for conventional housing remains high.

Implications for Taxpayer Subsidies

• Potential Reduction in Government Spending: If manufactured housing were fully utilized, subsidies for more expensive conventional housing could be phased out.
• Missed Economic Benefits: Manufactured homes offer an inherently affordable alternative, but regulatory failures prevent them from fulfilling their potential.
• Industry Resistance to Change: Some industry players may prefer maintaining the status quo, benefiting from subsidies rather than advocating for regulatory enforcement.

Findings and Source Verification

• Legacy Housing’s Earnings Call Confirms Placement and Financing Challenges: CEO Duncan Bates reiterated that zoning barriers remain the biggest headwind, but competitive financing is also crucial.
• HUD Secretary Scott Turner’s Speech Remains Unpublished: Despite MHI’s claims, neither HUD nor MHI has made the full speech or video publicly available.
• MHI’s Transparency Issues Are Well-Documented: Multiple sources highlight MHI’s failure to robustly advocate for enforcement of existing laws.

Your report is consistent with available evidence, and the implications you outlined are well-supported by industry trends and regulatory concerns. The lack of transparency from MHI and HUD regarding Secretary Turner’s speech further reinforces concerns about industry priorities. If manufactured housing is to fulfill its potential, stronger enforcement of existing laws and greater transparency from industry leaders will be necessary.

1): Manufactured Housing Misses – Experts and Insiders Critique MHI Failures 2: Validity of SEC Materiality Guidance and Allegations Against MHI 3: HUD Secretary Turner’s Testimony on Housing Affordability 4: HUD Secretary Turner’s Statement on Housing Policy 5: Legacy Housing Q1 2025 Earnings Call Transcript 6: HUD Secretary Delivers Keynote Address at MHI Congress & Expo 7: Manufactured Housing Institute Transparency Issues

MHProNews notes that in addition to those links above Copilot selected the following three items.

• 1) https://www.manufacturedhomepronews.com/wp-content/uploads/2025/04/MHProNews-requested-GeminiDeepResearchValidity-of-SEC-Materiality-Guidance-and-Other-Allegations-Against-Manufactured-Housing-Institute-Members-4.26.2025.pdf
• 2) https://patch.com/florida/lakeland/manufactured-housing-misses-experts-insiders-critique-mhi-failures
• 3) https://investors.legacyhousingcorp.com/financial-information/quarterly-results

 

11) There is more that could be said, but that is sufficient for today to cover the headline topics and to document the growing body of evidence that manufactured housing is suffering from a combination of external barriers that internal actors are apparently taking advantage of with their own stated interest in consolidation of the manufactured housing industry.

 

 

 

4 of Top 10 MH States’ Shipments Dip-Latest Manufactured Housing Industry Production Data; Notice-It’s Not the Job of Honest Trade Media to Crash Problematic Corporate Stocks-However–MHVille FEA

MHARR Fingers MHI-Change ‘Expansion of Attainable Homeownership Through Manufactured Housing Act of 2025’-‘Primary Authority to Establish Manufactured Housing Construction and Safety Standards’ FEA

‘Upward Mobility or Neo-Feudalism? Without Affordable Home Millennials-Gen Z Face Big Challenges in Boosting Net Worth. Homes Account for Roughly Two-Thirds Middle-Income American Wealth’-Kotkin

‘By Preventing Market Failures Antitrust is Deregulatory Tool’-Antitrust Myth Busting Mark R. Meador Commissioner U.S. Federal Trade Commission-2nd Annual GWU Antitrust Conference; MHVille FEA

 

 

Reminder. There are sound reasons why AI has said that MHProNews has more than 6x the combined readership of MHI and its affiliated bloggers and trade media.

Again, our thanks to free email subscribers and all readers like you, as well as our tipsters/sources, sponsors and God for making and keeping us the runaway number one source for authentic “News through the lens of manufactured homes and factory-built housing” © where “We Provide, You Decide.” © ## (Affordable housing, manufactured homes, reports, fact-checks, analysis, and commentary. Third-party images or content are provided under fair use guidelines for media.) See Related Reports. 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.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.

http://latonykovach.com

Connect on LinkedIn: http://www.linkedin.com/in/latonykovach

 

 

 

 

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