MHMSM.com presents Factory Built Housing Industry News at Noon with Erin Patla.
We begin with these stories:
IN AN EFFORT TO INFORM the current discussion on the future of the housing finance system, the Federal Housing Finance Agency (FHFA) released data on Fannie Mae and Freddie Mac Monday that compare the credit quality and performance of the loans they acquired relative to loans financed with private-label mortgage-backed securities. Key findings include an analysis of credit scores that showed eighty-four percent of single-family mortgages acquired during 2001 to 2008 were made to borrowers with FICO credit scores above 660, while 5 percent were made to borrowers with FICO scores below 620. In contrast, 47 percent of mortgages financed with private-label MBS originated during this period were made to borrowers with FICO scores above 660, while 32 percent were made to borrowers with FICO scores lower than 620. Regarding loan-to-value ratios, more than 82 percent of Fannie and Freddie-acquired loans had LTV ratios at origination of 80 percent or less, while two-thirds of mortgages financed with private-label MBS had LTV ratios at or below 80 percent. Moreover, eighty-eight percent of Fannie and Freddie-acquired mortgages were fixed-rate loans originated between 2001 and 2008 and ranged from 79 percent for 2004 originations to 96 percent for 2001 originations. Finally, roughly 5 percent of Fannie- and Freddie-acquired, fixed-rate mortgages and 10 percent of acquired ARMs were over 90 days delinquent at some point before the end of 2009. Roughly 20 percent of fixed-rate mortgages and 30 percent of ARMs financed with private-label MBS were over 90-days delinquent at some point before year-end 2009.
THE NATIONAL ASSOCIATION OF HOMEBUILDERS (NAHB) has begun defending homeownership amidst talk in Washington of bolstering programs that subsidize renting. After a recent Time magazine cover story “Rethinking Homeownership” questioned the desirability, the organization has called owning a home a cornerstone of the American Dream. NAHB CEO Jerry Howard traveled to New York to meet personally with TIME magazine editors and provide what it calls a rational view of the many benefits of homeownership.
Manufactured homes in the news…
FROM SOUTH CAROLINA, the Times and Democrat reports Orangeburg County’s zoning official says three manufactured home subdivisions adjacent to the Calhoun County line are incorrectly zoned. The subdivisions are all zoned residential single-family, which does not allow for manufactured homes. It was requested the properties be rezoned for forest/agriculture, which allows manufactured homes.
FROM NORTH CAROLINA, the town of Sedalia is looking into designating specific areas for manufactured homes. Town Clerk Cam Dungee told WFMY News that the proposal is to keep single and double-wide homes in a certain area of the town. The town would need to hold a public hearing to approve the addendum’s to the Town’s Ordinance prior to any changes.
“Up next, Modular Homes in the News”
But first, this podcast of News at Noon is sponsored in part by:
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Now, back to our stories.
Modular homes in the news…
THE PORTLAND PRESS HERALD in Maine reports that a Portland architect is teaming up with a modular home builder to create a series of modular houses with the capacity to generate as much energy as they use. The net-zero homes, which combine super insulation, efficient heaters and solar energy to produce all the power they need on an annual basis. Prices will start at $205,000 for a small, two-bedroom house, excluding the cost of land, utilities and solar panels.
MORE ON THE NEW HOME of world-renowned Everglades’s photographer Clyde Butcher—from the News Press in Fort Myers, Florida. An Estero, Florida-based contractor began installing his modular home in Harbor Lights, a manufactured home community in Venice. The 1,000-square-foot home features a white metal roof with solar panels, high insulation ratings and energy-efficient air conditioning. It will be anchored to a 14-foot-high concrete structure and be able to withstand 150 mph winds.
In markets and business news…
UMH PROPERTIES announced that it will present to the Philadelphia Securities Association on Wednesday, October 6. The Forum will be held at the Union League of Philadelphia located in Philadelphia, PA. Eugene W. Landy, Chairman of the Board, and Michael P. Landy, Vice President – Investments, will present an overview of the company followed by a question-and-answer session. The presentation will be available on the company’s website umh.com.
THE PRICE OF TEA IN CHINA may not seem as removed as it once did. Stocks rose on Monday after China’s industrial output surged, and regulators gave banks as much as eight years to meet capital requirements. Also today, billionaire investor and Clayton Homes owner Warren Buffett said his businesses are growing and ruled out a second recession in the U.S. “We will not have a double-dip recession at all,” Buffett said at the Montana Economic Development Summit. “I see our businesses coming back almost across the board.”
OTHER NOTABLE COMMENTS at the event came from GE CEO Jeff Immelt who said the economy since the 1970s has been driven by consumer credit and a misguided notion in building a “lazy” service economy. Today Immelt says manufacturing, with an aim to reduce the trade deficit, is the key. “It was just wrong. It was stupid. It was insane,” Immelt said of the push for a service-based economy. “The future of our economy has to be as an exporter.” Immelt also notes his company is finding it profitable to build manufacturing and service centers in the United States rather than overseas.
STOCKS CLOSED 82 POINTS HIGHER Monday with some manufactured housing related stocks also recording gains for the day. Leading the way in terms of percentage increase were the Barnes Group, All American Group and Drew Industries. Cavco, Nobility Homes and Skyline closed lower. The manufactured housing composite value ended more than one percent lower. In contrast, the residential construction composite value was up more than two percent.
“On behalf of Production and IT Manager Bob Stovall, Editor L.A. ‘Tony’ Kovach, Associate Editor Catherine Frenzel, INdustry in Focus reporter Eric Miller, and the entire MHMSM.com writing and support team, this is Erin Patla. G’day!”