MHMSM.com presents Factory Built Housing Industry News at Noon with Erin Patla.
We begin with these stories:
INVESTORS BUSINESS DAILY reports that a practice being referred to as “flopping” is the latest real estate scam. A play on the practice of “flipping,” or cosmetically upgrading a home and selling at a profit, flopping scams prey on underwater homeowners and their lenders and have attracted the attention of the FBI and Freddie Mac. According to the report, a flopper may use a faulty appraisal or broker price opinion to try to buy a home at below market price, in a short sale negotiated with the lender. The scammer will already have secretly found a subsequent buyer for the home, who’ll pay a higher price.
IN AN EFFORT TO HELP responsible homeowners who owe more on their mortgage than the value of their property, the U.S. Department of Housing and Urban Development Tuesday began providing an additional refinancing option for underwater borrowers. Originally announced in March, this enhancement of Federal Housing Administration refinance program will offer certain ‘underwater’ non-FHA borrowers who are current on their existing mortgage and whose lien holders agree to write off at least ten percent of the unpaid principal balance of the first mortgage, the opportunity to qualify for a new FHA-insured mortgage. The FHA Short Refinance option is targeted to help people who owe more on their mortgage than their home is worth. Participation in FHA’s short refinance program is voluntary and requires the consent of all lien holders.
Manufactured Housing in the news…
FROM THE HIGH POINT ENTERPRISE in Winston-Salem, North Carolina, we find that sellers of manufactured and modular homes are reporting year-to-year sales have seen double-digit increases. It was noted that year-over-year sales for Clayton Homes were up 22 percent. Clayton franchise owner Joe Berry told the paper his customer traffic has slowly increased since the housing market took a dive. Billy Peeples, another retailer, told the paper his sales were up 28 percent and that customers are downsizing to more manageable manufactured homes from 2,000-3,000 square foot homes. While homes start at $25,000 and range up to $200,000, the most popular models are in the $120,000 range.
“More Manufactured Housing 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.
FROM MCKINNEY, TEXAS, the Encore Wire Corporation announced that the Company’s Chief Financial Officer, Mr. Frank J. Bilban, will be presenting at Morgan Keegan’s Industrial/Transportation Investor Conference in Chicago on Tuesday, September 14.
The Morgan Keegan conferences draw hundreds of institutional investors from across the country. Encore Wire Corporation manufactures a broad range of copper electrical wire for interior wiring in homes, apartments, manufactured housing and commercial and industrial buildings.
TEXAS’ LEADING independent manufactured home producer, Legacy Housing, is slating this September 12-15 for its 5th annual factory show. Located in north Fort Worth, Texas, this show will feature factory tours, a discussion of available finance programs, sign-ups for Retail Finance, and will feature benefit demonstrations of over a dozen of Legacy’s best-selling home models, setup, decorated, and ready for walk-throughs.
Modular Homes in the News…
PENN LYON EMPLOYEES out of work at the modular home builder now have the assistance of a state job assistance agency. The Daily Item reports that PA CareerLink is designed to help those who are suddenly without a job in an already difficult economy. It is connected to a statewide database that allows employers across Pennsylvania to search for potential employees. The center gave a presentation last week to former employees of modular home builder Penn Lyon Homes. About 82 of Penn Lyon’s 92 employees have been furloughed. The good news? The center reports an increased number of job postings over last year, but says the employment picture remains difficult.
In Market News…
FROM PAYSON, ARIZONA, the Payson Roundup reports signs of life for the housing industry. In July, builders took out permits to build four houses in Payson, plus two commercial projects. According to the report, in fiscal 2009, the town issued permits for 28 single-family homes, 18 manufactured homes, 66 apartment or condo units and three commercial projects. In fiscal 2010, the town issued permits for 28 single-family homes, seven manufactured homes and two commercial projects. Preliminary figures for August show several more permits for new homes and several commercial projects. Payson Mayor Kenny Evans notes also that 17 commercial developers have projects in the pipeline.
MARKETS CLOSED LOWER by more than 100 points on Tuesday on concerns about a European debt crisis with staying power. Manufactured home stocks on our watch list were also lower across the board. The manufactured housing composite value was off by 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!”