American Enterprise Institute (AEI) Housing Center provided MHProNews with the news item below earlier today.

AEI’s Director Edward Pinto, J.D., report stated the following.

 

Nowcast: 10 metros most threatened by high numbers of FHA delinquencies (February 2021 Update)

While Atlanta and Houston are the metros most at risk from FHA delinquency rates, elevated FHA delinquency rates threaten homeowners and neighborhoods in numerous other metro areas across the country. The share of February FHA delinquent and seriously delinquent loans are both higher than in the prior month.

Of FHA’s roughly 8 million loans outstanding in February, 17.5% were delinquent and 12.0% were seriously delinquent as reported in FHA Neighborhood Watch (includes loans in forbearance). The below table summarizes these trends over time:

 

The balance of the report will be tonight’s featured focus.

Before pivoting toward tonight’s featured focus segment – and for the benefit our growing numbers of new readers – a few quick evening/nightly market report insights.

• Every business evening/night, MHProNews provides a bullet list of left-right news headlines from CNN Business and Newsmax. 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.  It is a useful at-a-glance opportunity 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 mostly down day for manufactured home connected equities, let’s press ahead toward the featured focus on the millions of delinquent and seriously delinquent FHA loans and what that might signal.

 

Quotes That Shed Light – Industry, American, Social, National Issues

A blast from the past that
shows have far MHI has slipped?

 

 

Headlines from left-of-center CNN Business

• In the hot seat
• Elizabeth Warren grills Janet Yellen: Why isn’t BlackRock ‘too big to fail’?
• LIVE NEWS Dow rebounds in a roller coaster week
• Here’s who is at risk if the SPAC frenzy spins out of control
• This digital home might cost more than your actual home
• Fed up with FAANG and meme stocks? Here’s a new investing strategy
• China may just have doomed its trade deal with Europe
• Chinese hackers targeted Uyghurs living in US, Facebook finds
• Where women stand when it comes to pay
• Luxury travel agency drops Trump Hotels
• Slack announced it would let you DM anyone. Then people pointed out that might be a really bad idea
• HuffPost names new editor in chief
• How Prince Harry got his new job
• Get ready to see more films like ‘Cruella’ on Disney+
• How one Midwestern town got swept up in the electric vehicle boom
• The Cinnamon Toast Crunch shrimp-gate didn’t have to go viral
• A pedestrian walks past signage at Google Inc. headquarters in Mountain View, California, U.S., on Wednesday, April 25, 2018. Alphabet Inc. is pushing efforts to roll back the most comprehensive biometric privacy law in the U.S., even as the company and its peers face heightened scrutiny after the unauthorized sharing of data at Facebook Inc. Photographer: David Paul Morris/Bloomberg via Getty Images
• Google wants to give researchers money. Some no longer want to take it
• Maira Wenzel takes a break to laugh with her son while working from home in Manhattan Beach, California, where she and her family moved during the pandemic.
• An RV. A new home. Puppies. How these working moms are coping with the pandemic

 

Headlines from right-of-center Newsmax

• Biden Hands Off Border Crisis to VP Harris
• President Joe Biden is putting Vice President Kamala Harris in charge of the U.S. response to the influx of migrants that has overwhelmed shelters at the U.S. southern border.
• The Biden Presidency
• Caribbean Urges Biden to Share Vaccines With ‘Third Border’
• Rubio: Biden’s Rhetoric, 1st-Day Policies Created Border Crisis
• Grassley Presses DOJ on Probe of Kavanaugh Witnesses
• McConnell Blasts HR 1 as ‘Power Grab’
• Manchin Faces Pressure in His State to Oppose HR 1
• Politico Poll: ‘Declining Support’ for Giving Illegals Citizenship
• Judge Criticizes DOJ Officials for ‘Sedition’ Comments
• Biden Permits Media Coverage of Admin Migrant Camp Visit
• Kamala Harris Urges Congress to Act on Gun Control Legislation
• Newsfront
• McConnell: House Gun Safety Bills Won’t Address Shootings
• Acts of violence like the two mass shootings that have happened within the past week are “horrendous,” but the two gun safety bills that were passed earlier this month in the House won’t address the issue, Senate Minority Leader Mitch McConnell…
• Related Stories
• Shooter’s Facebook Rant: ‘Racist Islamophobic People’
• Lindsey Graham Threatens to Shut Down Senate if Denied Access at Border
• Lindsey Graham has threatened to shut down the U.S. Senate
• Cuellar: Migrants Must Be Made Aware of Consequences
• Henry Cuellar said Wednesday he’s been releasing videos
• Newsmax Website Traffic Soars as Conservative Sites See Dip
• com continues to see extraordinary growth in web traffic as
• Noem Spokesman Decries ‘Conservative Cancel Culture’
• A spokesperson for South Dakota Gov. Kristi Noem, a Republican, hit
• Politicians Seduced by Instant Gratification of Executive Orders
• Given the first few months of Joe Biden’s presidency have already
• Still No Biden Customs and Border Protection Nominee Despite Border Crisis
• Even as illegal immigrants continue to stream across the southern
• GM Further Cuts Production in North America Due to Global Chip Shortage
• General Motors Co. extended production cuts in North America on
• 12 AGs Call on Facebook, Twitter to Halt Spread of Vaccine Misinformation
• Twelve [blue state] attorneys general are calling on Facebook and Twitter to take
• Ohio’s Max Miller to Newsmax TV: I Have Trump’s ‘Trust,’ His ‘Backbone’
• Anthony Gonzalez, R-Ohio, is going to have to pay the price
• Wisconsin Assembly Authorizes Election Investigation
• The Republican-controlled Wisconsin state Assembly has authorized
• Fauci: AstraZeneca Likely to Release New Statement on COVID-19 Vaccine
• AstraZeneca PLC is likely to release a new, modified statement
• Prince’s Ashes to Be Displayed 5 Years After His Death
• Prince fans will have a once-off opportunity to pay their respect
• Pope Orders Salary Cuts for Cardinals, Clerics to Save Vatican Jobs
• Pope Francis has ordered cardinals to take a 10% pay cut and reduced
• Netanyahu Appears to Lack Votes to Win Israeli Election
• Israeli Prime Minister Benjamin Netanyahu’s prospects for another
• McConnell Blasts HR 1 as ‘Power Grab’
• The top Republican in the U.S. Senate on Wednesday blasted a sweeping
• Cuomo Impeachment Probe Could Take ‘Months’: Judiciary Chairman
• The New York Legislature’s impeachment investigation of Gov. Andrew
• Parler Co-Founder Matze Sues, Claims ‘Conspiracy’ to Oust Him
• Parler co-founder John Matze sued the conservative social media site
• Trump Making No Plans to Return to Twitter
• Twitter says “nothing has changed” with its permanent ban of former
• Related
• Bernie Sanders Not ‘Particularly Comfortable’ With Trump Twitter Ban
• Lauren Boebert to Newsmax TV: Anti-Gun Dems ‘Playing Politics With Our Lives’
• Democrats are going to spin Monday’s mass shooting at a Colorado
• Massive Cargo Ship Blocks Egypt’s Suez Canal
• GOP-Led States ‘On Offense’ in Courts Against Biden Policies
• From Atlanta to Phoenix, Republican-led states trying to thwart Joe
• Putin’s Chef’ Demands FBI Remove Him From Wanted List
• Kremlin-linked businessman Yevgeny Prigozhin has written to the FBI
• Shooter’s Facebook Rant: ‘Racist Islamophobic People’
• The 21-year-old man arrested and charged with shooting and killing 10
• Far-Right Party Set to Gain New Influence After Israeli Vote
• An alliance of far-right groups including openly racist
• Newly Confirmed Surgeon General to Focus on COVID, Opioids
• The Senate confirmed a soft-spoken physician as President Joe Biden’s
• Korea Fires Short-Range Missiles, Challenging Biden
• North Korea fired several short-range ballistic missiles over the
• CDC Considers Extending Eviction Protection for Renters
• The Centers for Disease Control and Prevention is considering
• The 15 Jurors Selected for the Trial of Derek Chauvin
• Guard Troops Transporting COVID Vaccines Held at Gunpoint in Texas
• An armed man has been charged with ambushing 11 National Guard troops\
• Finance
• GameStop Tumbles After Reddit Darling Considers Share Sale
• Musk: Tesla Accepts Bitcoin as Payment for Cars
• Biden to Mark ‘Equal Pay Day’ as Women Hit Worse Than Men by Pandemic
• CEOs Warn NY Tax Hikes Could Derail Big Apple Recovery
• Health
• Americans Gained 2 Pounds a Month During Lockdowns
• There’s no doubt that most of us packed on the pounds during the pandemic. With the second summer of COVID-19 approaching, many Americans want to slim down for bathing suit season…
• The Environmental Working Group Releases 2021 Shopper’s Guide to Pesticides in Produce
• 6 Signs of Stomach Problems You Should Not Ignore
• 5 Ways to Feel Fuller Faster to Lose Weight Easily
• Natural Remedies to Reduce Pain

 

Market Indicator Closing Summaries – Yahoo Finance Closing Tickers on MHProNews…

Featured Focus –
Where Business, Politics and Investing Can Meet

 

“Ten metros in seven states present especially large risks due to the combination a large FHA portfolio containing a high percentage of delinquent or seriously delinquent loans. The ten most threatened metros in February 2021 were (the list of ten metros is unchanged from last month):

 

 

As the forbearance periods end, one of two things will happen. Those borrowers who are able to resume normal payments may elect to have arrearages deferred until the loan is paid off, which would result in these loans becoming current. Borrowers who are unable to resume normal payments or who elect not to, remain delinquent. As a result, total delinquency levels are likely to fall, but serious delinquencies are likely to remain high. Unless able to sell their home, those borrowers who remain seriously delinquent are likely headed to foreclosure or other disposition. A buyer’s market could develop in ZIP Codes with heavy exposure to FHA and other high risk loans.

Homeowners in these ZIP Codes will predominantly be low income (ZIP Codes with about 50-90% of area median income) and contain high percentages of households of color and high levels of mortgage risk. See, for example, the maps for the Washington, DC metro area, which show the substantial overlap for concentrations of FHA and minority borrower share, high levels of DTIs and mortgage risk. The area to the southeast on the map largely consists of Prince George’s County, MD. This was the hardest hit DC area county during the Great Housing Bust.

 

To view FHA foreclosure rates for the largest 169 MSAs or to explore the concentration of FHA loans in your metro, please click here.

Edward J. Pinto
Director, AEI Housing Center
240-423-2848

American Enterprise Institute
1789 Massachusetts Ave, NW
Washington, DC 20036

##

If this trend is not successfully addressed in a fashion that helps those home owners save their homes, then this could end up another instance much like the 2008-2009 housing crisis with potentially hundreds of thousands or more housing units ending up in the hands of private equity.  See the related report, below.

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.

• • • • • • • • • 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.

 

Spring 2021…

Berkshire Hathaway is the parent company to Clayton Homes, 21^st 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…

Learn more about our evolutionary journey as the industry’s leading trade media, at the report linked below.

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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.

LATonyKovach.