The top four paid staffers for the Manufactured Housing Institute (MHI) drew well over one million dollars in pay and “other compensation” during the one year reporting period shown in this report. That is according to the trade organization’s own statements made to in a document obtained by MHProNews that is provided to the Internal Revenue Service (IRS) in MHI’s annual nonprofit reporting via IRS Form 990. That begs the question: did those MHI staffers performance merit that sort of hefty pay? But perhaps more importantly are other statements made by MHI’s Mark Bowersox under penalties of perjury. Furthermore, the MHI filing arguably provides statements that reflect direct and indirect evidence of possible fraud, antitrust and other violations of federal and/or state laws. This report will be an initial look at the most recent document available obtained via a third-party. Note that MHI has recently and on various prior occasions declined comment on these concerns. Part One of this report will be various items from the MHI IRS filing. Part Two will be Additional Information with More MHProNews Analysis and Commentary. Part Three of this article is our Daily Business News on MHProNews manufactured housing connected equities, which includes stocks and Real Estate Investment Trusts (REITs) performance for companies connected to the relatively diminutive by historic standards manufactured housing industry (a.k.a. MHVille).
With that outline, let’s dive into the initial details drawn from MHI’s 990 disclosures and statements.
From the MHI Form 990 are the following declarations which are made under penalties of perjury. While MHI President Mark Bowersox signed the document there are statements that indicate that others involved with MHI are part of the process of reviewing and approving this federal filing.
From the 990 is the following language. Note that the use of all caps shown below are in the original MHI filing.
Part II Signature Block
Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge and belief, it is true, correct, and complete. Declaration of preparer (other than officer) is based on all information of which preparer has any knowledge.
NATIONAL TRADE ORGANIZATION REPRESENTING ALL SEGMENTS OF THE FACTORY BUILT HOUSING INDUSTRY.
Part III Statement of Program Service Accomplishments
1 Briefly describe the organization’s mission:
THE MANUFACTURED HOUSING INSTITUTE (MHI) IS THE ONLY NATIONAL TRADE ORGANIZATION REPRESENTING ALL SEGMENTS OF THE FACTORYBUILT HOUSING INDUSTRY. MHI MEMBERS INCLUDE HOME BUILDERS, RETAILERS, COMMUNITY OPERATORS, LENDERS, SUPPLIERS AND AFFILIATED STATE ORGANIZATIONS. MEMBERS ARE RESPONSIBLE FOR MORE THAN 85 PERCENT OF THE HOMES PRODUCED EACH YEAR.
Describe the organization’s program service accomplishments for each of its three largest program services, as measured by expenses. Section 501(c)(3) and 501(c)(4) organizations are required to report the amount of grants and allocations to others, the total expenses, and revenue, if any, for each program service reported.
4a (Code: ) (Expenses $ including grants of $ ) (Revenue $ )
PURSUED EQUITABLE INDUSTRY RECOGNITION IN THE ACTIVITIES OF THE LEGISLATIVE AND EXECUTIVE BRANCHES OF THE FEDERAL GOVERNMENT BY ANALYSIS OF FEDERAL LEGISLATION CONTAINING PROVISIONS AFFECTING THE MANUFACTURED HOUSING INDUSTRY, INITIATED FEDERAL LEGISLATION OR ADMINISTRATIVE ACTION TO ADVANCE INDUSTRY INTEREST, AND INTERACTED WITH APPROPRIATE GOVERNMENT OFFICIALS AND RELATED ORGANIZATIONS TO ENHANCE INDUSTRY RECOGNITION AND PROPER CONSIDERATION OF INDUSTRY NEEDS.
4b (Code: ) (Expenses $ including grants of $ ) (Revenue $ )
SOUGHT TO OBTAIN REASONABLE FEDERAL CONSTRUCTION AND SAFETY CODES AND STANDARDS FOR THE MANUFACTURED HOUSING INDUSTRY, OFFERED PROGRAMS TO ENHANCE THE RECOGNITION AND IMAGE OF THE MANUFACTURED HOUSING INDUSTRY, OFFERED PROGRAMS AND DISTRIBUTED COMMUNITY DEVELOPMENT INFORMATION TO PROMOTE THE SUCCESSFUL OPERATION OF MANUFACTURED HOME COMMUNITIES.
4c (Code: ) (Expenses $ including grants of $ ) (Revenue $ )
ENABLED MHI TO BE A RECOGNIZED SOURCE OF INFORMATION REGARDING THE MANUFACTURED HOUSING INDUSTRY THROUGH ACCUMULATION AND DISTRIBUTION OF INDUSTRY INFORMATION AND STATISTICS TO GOVERNMENT OFFICIALS, THE MEDIA, AND GENERAL PUBLIC. ALSO OFFERED PROGRAMS DESIGNED TO INCREASE INDUSTRY SALES NATIONWIDE BY ENCOURAGING POLICIES TO DEVELOP MANUFACTURED HOUSING COMMUNITIES, PARKS, AND PRIVATE LOT PLACEMENTS.
(Code: ) (Expenses $ including grants of $ ) (Revenue $ )
MHI ACTS AS LIAISON WITH STATE ASSOCIATIONS TO COMBINE EFFORTS WITH THE NATIONAL ORGANIZATION MHI PROVIDES PUBLICATIONS TO MEMBERS AND NONMEMBERS INTERESTED IN GAINING KNOWLEDGE ABOUT THE MANUFACTURED HOUSING INDUSTRY IN ADDITION, MHI ACTIVELY MEETS REGULARLY WITH ITS MEMBERS TO GAIN INSIGHT REGARDING THE PRIMARY FOCUS OF THE MEMBERSHIP BASE AND PROSPECTIVE MEMBER.”
A screen capture of the sections above are posted below.
Additionally, the compensation structure of the top paid MHI staffers, per the screen capture of the 990 filing for 2019, signed in 2020, are as follows. Note: on the images above and below, along with others in this report, could be expanded to a larger size. Click the image and follow the prompts.
So, the top four paid MHI staffers have collectively earned $981,996 that one year, plus an additional $174,640 in “other compensation from the organization” or a total of $1,156,636 million for 2019 alone. How much of that $174,640 was a bonus or other compensation (e.g.: perhaps 401K contributions along with any other non-salary compensations) are not detailed.
Additionally, as the screen capture immediately above revealed, the top 10 MHI staffers for the year in question were collectively paid $1,807,689 in salary, another $274,990 in “other compensation” (e.g.: possibly 401K contributions and/or bonuses), for a total payout of $2,082,679 in salary and other compensation. That presumably doesn’t cover travel and other expenses associated with those MHI team members. Per the same 990 MHI reportedly had 21 people at various times on staff. Which begs the question: what are all those people doing? How effective are they at advancing the industry’s interests, as MHI claims it is seeking to do?
Part Two. Additional Information with More MHProNews Analysis and Commentary
This segment will include the following topics, not necessarily in this sequence.
- New research that reveals that manufactured home loans are performing well, essentially on par (or at times, better) than conventional housing.
- Key contents of an email to MHI’s CPA.
- Information from third party sources, including the IRS, that when examined in comparison to MHI’s filing arguably indicate significant legal issues for top MHI staff and/or their board members.
- Related analysis, historic records, and expert MHProNews commentary.
There are articles online by nonprofits, CPAs, and law firms that warn against the misuse or abuse of nonprofit status. Among them is a report that refers to the “weaponization” of nonprofit status. DBN Additionally, the Internal Revenue Service (IRS) has pages of specific warnings against activities that risk nonprofit status, provide for penalties, and encourage or may even financially reward whistleblowers. The Federal Trade Commission (FTC) and other federal and state agencies have pages of information about possible scams and abuses, some of which specifically point to nonprofit status.
With that brief tee up, the following email was sent yesterday to MHI’s listed accounting firm associated with the filing of this IRS Form 990.
Jeff Aalbers, Elizabeth Spencer,
We are in possession of the 2019 IRS Form 990 for the Manufactured Housing Institute (MHI). It lists “CLIFTONLARSONALLEN” as the paid preparer. We are planning a report, which is likely to be this week, perhaps as soon as tomorrow. A timely reply to our questions are therefore hereby requested.
Via an emailed reply for our mutual accuracy and reporting purposes are the following questions. There are no word limits for your reply and PDF documents are welcome.
1) Has your firm conducted a “nonprofit audit, according to The Alliance for Nonprofit Management is, “for testing the accuracy and completeness of [the] information presented in an organization’s financial statements. This testing process enables an independent certified public accountant (CPA) to issue what is referred to as an opinion on how fairly the agency’s financial statements represent its financial position and whether they comply with generally accepted accounting principles (GAAP).”
Please advise the precise services that your firm has been providing to MHI in connection with their annual 990 filing.
2) Please confirm or clarify, but it is our impression that “CLIFTONLARSONALLEN” has been performing professional services for MHI for some years, including with respect to the preparation of the IRS Form 990.
3) There are evidence-based reasons to believe that one or more MHI leaders may have engaged in perjury, fraud, and antitrust violations, among other possible federal or state level offenses. If so, in your view, what liability, if any, do you think that such a probe or charge may hold for your firm? Or what exposure do you think that may have for MHI leaders?
4) A reliable source has told MHProNews that your firm monitors our publication, so you are likely aware of the concerns being raised. But for clarity, a recent report that includes some of these issues and links to others is provided below for your convenience. You and/or your client are welcome to provide a response to these issues or others previously raised by our publications.
Tony … [for MHProNews] ##
As of 1:00 PM on 1.19.2023 there was no reply from MHI, which was blind copied on the above, nor from CLA. By comparison, when MHProNews recent asked for documents from the RV MH Hall of Fame, a reply that included those documents were provided.
That pattern of MHI and/or a key MHI-connected corporate party being nonresponsive to MHProNews inquiries should be clarified. A given party may acknowledge the receipt of the inquiry from MHProNews, but they routinely do not provide any answer to the question(s) posed.
Per the IRS
The MHI 990 filing identifies the organization as a 501c6 type of nonprofit. A download on the IRS.gov website stated that: “This article discusses issues relating to the tax-exempt status under IRC 501(c)(6) of business leagues, chambers of commerce, boards of trade, and similar organizations.”
Under the subheading of “Regulations” the IRS document stated the following.
“Reg. 1.501(c)(6)-l defines a business league as an association of persons having a common business interest, whose purpose is to promote the common business interest and not to engage in a regular business of a kind ordinarily carried on for profit. Its activities are directed to the improvement of business conditions of one or more lines of business rather than the performance of particular services for individual persons.”
Under the subheading of “Basic Characteristics To meet the requirements of IRC 501(c)(6) Organization” is the following, quoting from that IRS article.
To meet the requirements of IRC 501(c)(6) and Reg. 1.501(c)(6)-1, an organization must possess the following characteristics:
- It must be an association of persons having some common business interest and its purpose must be to promote this common business interest;
- It must be a membership organization and have a meaningful extent of membership support;
- It must not be organized for profit;
- No part of its net earnings may inure to the benefit of any private shareholder or individual;
- Its activities must be directed to the improvement of business conditions of one or more lines of business (discussed under “The ‘Line of Business’ Requirement,” page 21) as distinguished from the performance of particular services for individual persons;
- Its primary activity does not consist of performing particular services for individual persons; and
- Its purpose must not be to engage in a regular business of a kind ordinarily carried on for profit, even if the business is operated on a cooperative basis or produces only sufficient income to be self-sustaining
The article explains that a ‘person’ in this context may be an natural person or a corporation, or other legal entity.
Questions and Possible Legal Issues Raised by MHI 990 Claims
Several possible issues ought to be considered in the above. For instance.
- Has MHI, by trademarking and promoting CrossMod® designated manufactured homes, violated one or more of those provisions?
- Has MHI, by failing to act properly with respect to existing federal laws, or in promoting CrossMods, provided benefits to the industry’s apparent as well as self-declared consolidators that does not benefit the interests of membership at large?
- Has MHI, which based on evidence appears to have been cooperating with the DOE in undeclared negotiated rulemaking, violated provisions of its 501c6 status? Because larger corporations may benefit from the new rules indirectly because it places a larger proportionate burden on smaller companies.
- Has MHI, by failing to deploy its legal resources to effectively and robustly sue to get various federal laws properly enforced has de facto benefited consolidators while de facto harming independents.
- Has MHI violated in several respects antitrust and other laws? Is MHI acting in a fraudulent manner? Have two or more MHI staff and other legals engaged in perjury, or have some suborned perjury?
There is a case that might be made that MHI has been hopelessly corrupted in the 21st century. As an MHI member told MHProNews, since Chris Stinebert left MHI “f-cking greedy” corporate leaders have been “empowered.”
Recall that Stinebert in his exit message essentially took a thinly veiled swipe at the association he was leaving, presumably framed in a way to avoid violating the non-disclosure agreement that MHI reportedly has some team members sign.
Sources at the Manufactured Housing Association for Regulatory Reform (MHARR) have told MHProNews that they disagreed with MHI over policies numerous times over the years. That is near the core of the reason that MHARR exists. While Chris Stinebert was MHI’s president and CEO, a well-placed source at MHARR said that they may have ‘argue hard’ over specific issues. But MHARR and MHI could often come to a meeting of the minds. That late 20th and early 21st century reality has since vanished.
Concerns over MHI’s modus operandi are but one of several reasons that MHARR has asserted that MHI is openly working with the competitors of manufactured housing. They are doing so, per MHARR and other MHI critics, in a fashion that benefits the others in housing, but does not broadly benefit the manufactured housing industry interests. Nevertheless, MHI frames it quite differently. Note that MHProNews and some others have repeatedly pointed out this caveat. The pattern in recent years does benefit the consolidators of the industry which are routinely MHI members. Such an apparent line of behavior (and/or reasoning) could thus be a breach of the “common interests” provision of MHI’s 501c6 status.
When MHI says on its website or elsewhere that they represent “all segments” of the industry (be that claim true, paltering, or false), that is not merely a marketing statement. That is arguably directly related to their organizational structure and thus their IRS 501c6 tax exempt status.
Furthermore, years of MHI’s filings have essentially made that point. When MHI leaders say in a 990 filing that they are working to improve the business or regulatory environment in order to help facilitate growth of the industry, they have made a fundamental commitment to members that they ought to keep.
- If MHI leaders didn’t mean what they said, then they arguably engaged in a form of perjury, fraud, deceptive trade practices, etc.
- If MHI leaders are sincere but are simply not effective at attaining their own stated goals, then one might think that MHI’s board of directors and “executive committee” at some point would terminate those staffers and replace them with those who can accomplish the claimed mission. While there has been a revolving door at MHI, at the senior staff level people may hold their jobs for several years before going on to another association or going into retirement. There is no known instance of an MHI staff leader being fired in recent years. That would suggest that MHI’s executive committee is in fact fine with key staff performance.
- The bullet above noted, the pattern in recent years yields this outcome. Larger firms tend to survive while smaller firms often either fail, sell out, or are otherwise steadily absorbed by larger ones.
- It is this demonstrable pattern of consolidation that yields the evidence-based thesis that MHI’s corporate masters unstated goal is to keep the industry underperforming in order to facilitate consolidations.
The fact is readily documented that several publicly traded and vertically integrated manufactured housing producers and manufactured home community (MHC) owner/operators are openly engaged in consolidation. This is made clear per corporate statements to investors, which are supposed to be accurate and honest, according to federal law.
> The disconnect between MHI’s lack of accomplishments despite their claims for working for all segments of the industry brings legal issues into focus.
There is also a body of evidence that third-party researchers have noted which cry out for federal and/or state investigations and possible legal action. Yet, MHI has not mentioned these concerns, and declines comment on those third-party concerns.
The Cavco Connection
The fact that Cavco Industries recently settled a case with the Securities and Exchange Commission (SEC) that included some of its former leaders, including a former MHI chairman – Joseph “Joe” Stegmayer – making a similar settlement with the SEC may add further fuel to the need for antitrust, IRS, RICO, Hobbs Act, fraud related probes and legal processes.
People involved in MHI have from time to time said that a rising tide lifts all boats. That is true enough. But the opposite of that is important to consider.
When the manufactured housing industry is contracting, as it did following the much-touted launch of what the “new class of manufactured housing” later rebranded as “CrossMod®“ homes, a wave of consolidations steadily occurred. Is that coincidence? Or was it part of some unstated plan that violated MHI’s 501c6 status, and perhaps other federal laws too?
In the past two months of formal reporting, despite the ongoing affordable housing crisis, manufactured housing shipments are once again in a year-over-year decline. For those who want to truly understand the details and nuances, the report below is packed with facts and evidence.
To veer back to the CrossMod® theme for a bit for the reasons that will be made clear, that MHI project has occupied a prominent place on the MHI home page for some years. So much so that when MHProNews checked MHI on SimilarWeb late last year, a CrossMod is the home page image that appeared.
Yet the CrossMod scheme seems only seems to benefit a few brands (“persons”) in the organization. That benefit is NOT necessarily caused by a volume of sales, because MHI itself admitted in writing to HUD that “developers are moving away from” CrossMods. The CrossMods product has been a marketplace failure as measured by actual results. All the known evidence indicates that a relatively tiny number of sales of those units occur a year, single digit or perhaps low double digit. Nor are there any routine known complete public disclosures by MHI of that information, which is promoted by their so-called Big Three of Clayton Homes (BRK), Skyline Champion (SKY) and Cavco Industries (CVCO). If CrossMods were successful, then why wouldn’t they be shouting their results from the housetops?
Again, the significance in terms of the MHI IRS 501c6 tax exempt status is just one possible ramification. CrossMods may be a case of ‘heads they win, tails you lose.’ The “they” in that last line are the MHI insiders who are consolidation focused.
The Warren Buffett – Clayton Homes Connection
MHProNews and our MHLivingNews sister site has hammered at the evidence of apparent antitrust violations in recent years. But others have raised the issue too.
The Nation, the Seattle Times, and other publications have hit on the issues related to concerns about various claimed illegalities. Once again, there are the evidence- and legally framed concerns of Samuel “Sam” Strommen with Knudson Law.
The reasons why most Americans should care is because of the ongoing affordable housing, argued Strommen.
Senior economist James A. “Jim” Schmitz Jr. and his colleagues come at the issue first from the perspective of how conventional builders, trade group, and HUD have subverted the manufactured home industry through what they call ‘sabotaging monopoly’ tactics.
But Schmitz has since added that those tactics have had their echo from within manufactured housing.
There is also the classic ‘debate’ between Doug Ryan, a pro-manufactured home advocate who has nevertheless publicly ripped Clayton Homes and MHI for their apparent efforts that he referred to as monopolistic. While MHI’s Gooch publicly disputed the claim, in hindsight, it seems clear that Ryan’s position – and that of other Clayton-MHI critics – has better stood the test of time.
What has MHI said about these outsiders and industry insiders who have ripped the trade group and some of their dominating brands, often by name? Silence.
What Defense Might MHI Leaders Offer?
Since MHI and their top board members decline comment, this is segment is more speculative, but can still be objectively presented based on known facts. A fair question is: what possible defense of some MHI staff leaders might be crafted to such charges? Among the possible defense talking points might go like this.
- An MHI president, CEO, or senior staffer might claim: ‘But I didn’t know what the effects of this policies at MHI might be. I was just doing what the MHI board of directors, specifically the MHI Executive Committee, instructed me to do.’
- Related to that, if Richard “Dick” Jennison or Mark Bowersox, for two examples, said words to this effect: ‘I signed the IRS 990 only after senior MHI board leaders said it was okay and instructed me to do so.’
Wikipedia defines suborning perjury as follows (italics added for emphasis): “subornation of perjury is the crime of persuading or permitting a person to commit perjury, which is the swearing of a false oath to tell the truth in a legal proceeding, whether spoken or written…”
Those points noted, MHI staff are known to be routine readers of MHProNews. So too, based upon sources deemed reliable and some of their own statements, are MHI board members. Additionally, two of MHI’s outside attorneys have said that the monitor publications either generally or have said very specifically that they are being paid by MHI to monitor our publications. It would strain credibility for outside law firms to monitor our publications (MHProNews/MHLivingNews) and not provide some report to MHI staff and corporate leaders.
Additionally, MHI has directly and through apparent surrogates for years sought to avoid engagement with MHProNews at various industry venues.
Put differently, there is evidence that MHI senior staff leaders can’t reasonably claim ignorance of what is occurring at the association. In as much as MHI board members are supposed to be working for the common good, a variety of conflicts of interest and possibly actionable or illegal activities seem to be occurring over a course of much of the 21st century. When Jennison exited and Lesli Gooch and Bowersox stepped into what MHI dubbed their “MHI 2.0” roles, has there been any practical change in policies?
There doesn’t appear to be any changes worth mentioning on the:
- DOE manufactured housing energy rule front.
- MHIA of 2000 and proper enforcement of the “enhanced preemption” of the law.
- On the need for more competitive financing front, MHI spends significant efforts on CrossMods, but what about the roughly 99.9% of HUD Code manufactured homes that the Duty to Serve (DTS) was supposed to benefit? CrossMods didn’t exist when DTS was enacted by Congress in a widely bipartisan fashion as part of the Housing and Economic Recovery Act (HERA) of 2008. So it can’t reasonably be said to be a fulfillment of a Congressional mandate. But as MHI has admitted, as it has on enhanced preemption, neither federal regulators, nor the entities that they regulate, have fulfilled the law as both MHARR and MHI have said. So, are all of MHI’s statements mere window dressing to mollify the smaller members while larger ones go about consolidating “a fragmented” industry?
- The Biden Administration has made much ado about the benefits of competition in the marketplace and their commitment to antitrust law enforcement (see that, along with other linked evidence from #1-3 above, further below). But there has been no effective efforts discernable to date, per often Democratic supporting antitrust observers like Matt Stoller. Furthermore, for two years, Democrats held both chambers of the Congress and have controlled the White House, which means, the federal bureaucracy. After years of campaign talk about antitrust efforts by Democrats, what became of them? Clearly, not much.
- Manufactured housing specifically, Democratic lawmakers called for investigations of Clayton Homes for apparent violations of laws on discrimination, antitrust, consumer protection and the like. What became of those evidence-based concerns? Did they vanish into the memory hole, save at a few places such as MHProNews/MHLivingNews which keeps the rear view mirror in mind?
Nor is this merely a Democratic party issue, as Republicans are now in charge of the U.S. House of Representatives. After promises on antitrust, perhaps specifically on big tech related topics, will the GOP and Democratic members of either chamber hold a serious set of hearings into what has gone wrong in the once several times larger manufactured home industry? Will they upon due consideration of the evidence make criminal referrals as warranted?
At the state level, will Democratic or Republican AGs step up and investigate manufactured housing? After all, affordable housing is considered to be in crisis nationally. Congress specifically intended The Manufactured Housing Improvement Act (MHIA) of 2000 to be an affordable housing law. That widely bipartisan bill studied the issues. It then passed the legislation that was supposed to fix these issues over 2 decades ago.
The Government Accountability Office (GAO) specifically looked into several of the apparent failures for HUD to implement the MHIA. While some could argue that some changes have occurred, the MHIA is still clearly not being properly implemented. Oddly, the GAO never mentioned the so-called “enhanced preemption” language in the law which allows HUD to override local zoning restrictions that have the effect of blocking the placement of manufactured homes.
But when Congress in 2011 (one of several items from that field hearing testimony on November 29, 2011 field hearing in Danville, Virginia on behalf of MHI is linked here) and 2012 held hearings to look into HUD’s failure to properly implement the MHIA – they did look specifically at the “enhanced preemption” topic. Representatives of MHI and MHARR each testified that the law was not being properly implemented. They specifically said that “enhanced preemption” was not being enforced.
The purpose of the federal government providing seekers of affordable manufactured housing to get more competitive interest rates is precisely to allow more Americans to qualify for financing that could make them homeowners.
MHARR has hammered at these vexing issues with respect to MHI for years. An example is linked below.
Third-Party Evidence that Manufactured Home Loans Are Performing Well
Years of research reveals that manufactured home loans perform at a similar rate as conventional housing. A panel discussion hosted by Freddie Mac in late 2022 had presenter Astou Aw, PhD, who said in part that: “There exist no statistically significant differences in the overall likelihoods of forbearance in high needs rural regions and metropolitan areas during Covid. • However, during the [COVID19] pandemic, loans linked to MH properties in high needs rural regions had a 0.22% lower probability of forbearance compared to those linked to Site Built homes within the same area.” He want on to say that: “Overall, manufactured home loans have a lower probability of delinquency [than site built housing]. In fact, loans linked to manufactured housing have about a 0.3% lower probability of being 90+ day delinquent.” Aw further said that: “There exist no statistically significant differences in the overall likelihoods of forbearance [for manufactured housing] in high needs rural regions and metropolitan areas during Covid.” So, among the key excuses offered to explain why Fannie Mae, Freddie Mac, or Ginnie Mae have not changed their manufactured home loan policies in a way to increase access to the secondary market has once again been shredded by a third-party researcher who ironically made those points during a Freddie Mac hosted event.
In summary, Aw said the following.
Differences in loan performance during the pandemic:
- Relative to SB loans, MH owners had a 1.1% lower probability of forbearance and 0.3% lower probability of delinquency during the pandemic.
- Loans linked to MH properties in high needs rural regions had a 0.22% lower probability of forbearance and a 0.1 % lower probability of delinquency relative to SB loans.
- Loans in high needs rural areas and other rural regions had a higher probability of delinquency relative to those in metros.
Why hasn’t MHI shouted those conclusions from the rooftops? Aren’t they the self-proclaimed representatives of “all segments” of the manufactured home industry? Aren’t the problems with the significant disconnect between their statements and their behaviors apparent?
With those points in mind, let’s circle back to what MHI’s board and Bowersox signed off on or specifically signed under penalties of perjury. To recap, per IRS (emphasis added): “A business league is an association of persons having some common business interest, the purpose of which is to promote such common interest.” “A business league will jeopardize its exemption under section 501(c)(6) of the Internal Revenue Code if it ceases to have as its purpose promoting the common business interest of persons engaged in a line of business.”
Recall that in a prior filing, MHI said the following (which is examined in a report linked below) about its mission. Note too that the fact- and evidence-packed Masthead editorial on that topic have stood the test of time well. It is perhaps as or more relevant today than it was when that Masthead column was first published.
Let’s recap what MHI’s Bowersox signed under penalties of perjury in their 2020 990 filing for the tax year 2019. Again, the all caps are in MHI’s filing. Highlighting in the below is added by MHProNews.
NATIONAL TRADE ORGANIZATION REPRESENTING ALL SEGMENTS OF THE FACTORYBUILT HOUSING INDUSTRY.
- THE MANUFACTURED HOUSING INSTITUTE (MHI) IS THE ONLY NATIONAL TRADE ORGANIZATION REPRESENTING ALL SEGMENTS OF THE FACTORYBUILT HOUSING INDUSTRY. MHI MEMBERS INCLUDE HOME BUILDERS, RETAILERS, COMMUNITY OPERATORS, LENDERS, SUPPLIERS AND AFFILIATED STATE ORGANIZATIONS. MEMBERS ARE RESPONSIBLE FOR MORE THAN 85 PERCENT OF THE HOMES PRODUCED EACH YEAR.
- PURSUED EQUITABLE INDUSTRY RECOGNITION IN THE ACTIVITIES OF THE LEGISLATIVE AND EXECUTIVE BRANCHES OF THE FEDERAL GOVERNMENT BY ANALYSIS OF FEDERAL LEGISLATION CONTAINING PROVISIONS AFFECTING THE MANUFACTURED HOUSING INDUSTRY, INITIATED FEDERAL LEGISLATION OR ADMINISTRATIVE ACTION TO ADVANCE INDUSTRY INTEREST, AND INTERACTED WITH APPROPRIATE GOVERNMENT OFFICIALS AND RELATED ORGANIZATIONS TO ENHANCE INDUSTRY RECOGNITION AND PROPER CONSIDERATION OF INDUSTRY NEEDS.
- SOUGHT TO OBTAIN REASONABLE FEDERAL CONSTRUCTION AND SAFETY CODES AND STANDARDS FOR THE MANUFACTURED HOUSING INDUSTRY, OFFERED PROGRAMS TO ENHANCE THE RECOGNITION AND IMAGE OF THE MANUFACTURED HOUSING INDUSTRY, OFFERED PROGRAMS AND DISTRIBUTED COMMUNITY DEVELOPMENT INFORMATION TO PROMOTE THE SUCCESSFUL OPERATION OF MANUFACTURED HOME COMMUNITIES.
- ENABLED MHI TO BE A RECOGNIZED SOURCE OF INFORMATION REGARDING THE MANUFACTURED HOUSING INDUSTRY THROUGH ACCUMULATION AND DISTRIBUTION OF INDUSTRY INFORMATION AND STATISTICS TO GOVERNMENT OFFICIALS, THE MEDIA, AND GENERAL PUBLIC. ALSO OFFERED PROGRAMS DESIGNED TO INCREASE INDUSTRY SALES NATIONWIDE BY ENCOURAGING POLICIES TO DEVELOP MANUFACTURED HOUSING COMMUNITIES, PARKS, AND PRIVATE LOT PLACEMENTS.
- MHI ACTS AS LIAISON WITH STATE ASSOCIATIONS TO COMBINE EFFORTS WITH THE NATIONAL ORGANIZATION MHI PROVIDES PUBLICATIONS TO MEMBERS AND NONMEMBERS INTERESTED IN GAINING KNOWLEDGE ABOUT THE MANUFACTURED HOUSING INDUSTRY IN ADDITION, MHI ACTIVELY MEETS REGULARLY WITH ITS MEMBERS TO GAIN INSIGHT REGARDING THE PRIMARY FOCUS OF THE MEMBERSHIP BASE AND PROSPECTIVE MEMBER.
With respect to communities, MHProNews and MHLivingNews have documented numerous instances of MHI member brands acting in ways that appear to be in conflict with MHI’s Code of Ethical Conduct.
MHARR has hammered at MHI to join with them in an effort to implement the good laws that the two trade groups jointly helped enact into federal law.
MHARR has pointedly said that MHI is posturing and not performing, providing documented instances to support their contentions.
Both Democrats and Republicans have raised antitrust and competition thwarting practices.
‘The U.S. Can Solve Its Housing Crisis – It Just Needs To Start Building’ Bloomberg, Washington Post Want More Manufactured Housing in 2023! Plus 2022 Year in Review, Sunday MHVille Weekly Headlines Recap
It remains to be seen if Republicans will do at the state level, or via their House majority, probe manufactured housing. Given that Several GOP state attorneys general have probed concerns over ESG and have sought to reign that in at the state level, it is not beyond the realm of possibility. After all the affordable housing crisis essentially impacts every state.
See the linked reports including the 505-word executive summary in the letter to the editor posted below.
Part Three. Daily Business News on MHProNews Markets Segment
The modifications of our prior Daily Business News on MHProNews format of the recap of yesterday evening’s market report are provided below. It still includes our signature left (CNN Business) and right (Newsmax) ‘market moving’ headlines. The macro market moves graphics will provide context and comparisons for those invested in or tracking manufactured housing connected equities.
In minutes a day readers can get a good sense of significant or major events while keeping up with the trends that are impacting manufactured housing connected investing.
Reminder: several of the graphics on MHProNews can be opened into a larger size. For instance: click the image and follow the prompts in your browser or device to OPEN In a New Window. Then, in several browsers/devices you can click the image and increase the size. Use the ‘x out’ (close window) escape or back key to return.
Headlines from left-of-center CNN Business – from the evening of 1.18.2023
- Second thoughts
- Jane Fraser, chief executive officer for Latin American at Citigroup Inc., speaks during the Milken Institute Global Conference in Beverly Hills, California, U.S., on Monday, April 29, 2019.
- Citi CEO is Wall Street’s biggest advocate for working remotely. Now she’s bringing underperforming staff back to the office
- America’s largest party supply store files for bankruptcy
- Stocks sink after retail sales fall, even as inflation slows significantly
- Retail sales continued to fall in December as shoppers battled inflation
- Feds arrest Russian crypto operator on suspicion of criminal activities
- Southwest pilots union cites Christmas meltdown in call for a strike vote
- Home builder confidence rises for the first time in a year
- Trump campaign has asked Meta to unblock the former president’s Facebook account
- Tesla video promoting self-driving was staged, engineer testifies
- Global oil demand could hit record high as China reopens
- ‘Inconsistent with human survival’: UN chief slams fossil fuel industry expansion in Davos speech
- China records first population decline in 60 years
- Macao gambling promoter Alvin Chau sentenced to 18 years – public broadcaster
- Coinbase says it will halt operations in Japan
- Yen falls after Bank of Japan maintains ultra-easy policy
- Europe’s ban on Russian diesel could send pump prices even higher
- South Africa’s energy crisis deepens as blackouts hit 12 hours a day
- Women living in states with abortion bans suffer greater economic insecurity
- Regulators conducting interviews in JFK airport near-crash probe
- The rich should pay higher fares to clean up aviation, says Heathrow boss
- Ousted Disney CEO Bob Chapek will get $20 million exit pay
- Tesla-induced pileup involved driver-assist tech, government data reveals
- Elon Musk is being sued over his ‘funding secured’ tweet. Here’s what you need to know
Headlines from right-of-center Newsmax 1.18.2023
- WH Scolds GOP for Placing ‘Extreme MAGA Members’ on Oversight Panel
- Marjorie Taylor Greene, R-Ga., smiles at Rep. Paul Gosar, R-Ariz., during a news conference at the Capitol in late 2021. (Getty)
- Newsmax TV
- Alina Habba: Transparency Lacking on Biden Documents | video
- Miller: House to Probe Mayorkas for Crime | video
- Blaine Holt: ‘Signaling’ About Ukraine Peace Talks Has Begun | video
- Blaine Holt: China in Second Cultural Revolution | video
- Texas DPS’ Olivarez: Cartels ‘Exploiting’ Biden Policies | video
- Ex-CIA Baker to Newsmax: Don’t Want ‘Multitiered’ Justice for Mishandling Docs | video
- Harris: Between Santos and Constituents If He Resigns | video
- Buck: Bipartisanship Possible on Big Tech | video
- Trump Vows to Ban Chinese Investment, Ownership in US If President Again
- Former President Donald Trump promises to ban Chinese nationals from buying farmland or owning telecommunications, energy, technology and medical supplies companies in the U.S. if he returns to the White House, the New York Post reported Wednesday…. [Full Story]
- Trump: Mar-a-Lago Records Included Empty Folders
- Former President Donald Trump says records found by FBI agents at [Full Story]
- Questions Mount in Biden Documents Scandal, Delays ‘Not Adding Up’ |Platinum Article
- McConnell Says DOJ Must Treat Biden, Trump Docs Cases Fairly
- Obama’s Ethics Chief: Biden’s ‘Negligence’ in Handling of Classified Docs ‘Appalling’
- WSJ: Biden Lawyers Talked DOJ Out of FBI Monitors for Docs Hunt |video
- WH Accuses Republicans of Hypocrisy on Biden Documents
- National Archives Says It Has to Consult DOJ Before Releasing VP Records
- Ex-Disney Exec Who Botched Florida Bill Bagged $8.4 Million
- Disney’s former communications chief – partly responsible for [Full Story]
- Justices Seem to Lean toward Deaf Student in Education Case
- The Supreme Court on Wednesday seemed sympathetic to the arguments of [Full Story]
- Ukraine’s Interior Minister Among 14 Dead in Helicopter Crash
- Ukraine’s interior minister was among at least 14 people killed on [Full Story]
- Russia’s Lavrov: Zelenskyy’s Peace Plan ‘Absurd’
- Pentagon Sends US Munitions From Israel, South Korea to Ukraine
- Russia’s Lavrov: Moscow Ready to Send Mission to Armenia-Azerbaijan Border
- Ukraine’s Zelenskyy Urges West to Send Tank Supplies Faster
- Wagner Chief Prigozhin Attacks Kremlin for Failing to Ban YouTube
- Serbia’s Vucic: We Won’t Back Putin’s War
- Putin: Russian Military-Industrial Might Makes Victory in Ukraine ‘inevitable’
- NATO Allies US, Turkey Try to Mend Fences but Rifts Persist
- The United States and Turkey on Wednesday looked to brush aside [Full Story]
- Debt Limit Warning a ‘Wake-Up Call’ on Spending
- Economists say the Treasury Department will enact “extraordinary” [Full Story] | Platinum Article
- WH Scolds GOP for Placing ‘Extreme MAGA Members’ on Oversight Committee
- The White House has condemned House Republicans for “handing the keys [Full Story]
- Serbia’s Vucic: We Won’t Back Putin’s War
- Serbian President Aleksandar Vucic, whose country has long had close [Full Story]
- Biden Considers Military Candidates to Replace Top US Gen. Milley
- President Joe Biden is considering several candidates to replace top [Full Story]
- Questions Mount in Biden Documents Scandal, Delays ‘Not Adding Up’
- President Joe Biden and former President Donald Trump both [Full Story] | Platinum Article
- Peter King: ‘Dead Man Walking’ George Santos Must Resign
- George Santos, R-N.Y., is a “dead man walking”in the House of [Full Story]
- Bad Moods Make Us More Detail-Oriented
- It’s good to be grumpy, especially if you need to proofread or [Full Story]
- Police in Georgia Arrest Suspect in Mall of America Shooting
- A suspect wanted in connection with a fatal shooting at the Mall of [Full Story]
- Ken Buck’s ‘Crushed’ Reveals Big Tech Dangers
- When the Founding Fathers drafted our Constitution, they had no idea [Full Story]
- Hearing Aids Mitigate Dementia Risk From Hearing Loss
- Could losing your hearing as you age be a harbinger of dementia? [Full Story]
- Lisa Marie Presley’s 3 Daughters Inherit $500M Graceland
- Lisa Marie Presley, the daughter of Elvis Presley, who died Jan. 12 [Full Story]
- Davos 2023: China Recovery Could Be Very Quick
- China could see a sharp recovery in economic growth from the second [Full Story]
- Inflation Data Trumped ‘Fed Speak’ for Moving Stocks in ’22
- Last year, the inflation data that forced the Federal Reserve to [Full Story]
- US Manufacturing Output Tumbles
- Production at U.S. factories fell more than expected in December and [Full Story]
- I&I/TIPP Poll: Majority Say US Headed for Socialism
- The United States, after massive COVID-related spending and a move [Full Story]
- Nursing Homes Under Investigation for Abuse of Antipsychotics
- The federal government says it will begin a targeted crackdown on [Full Story]
- Justice Charges Russian Founder of Crypto Exchange
- A Russian national who founded a cryptocurrency exchange that evaded [Full Story]
- Ukraine’s Zelenskyy Urges West to Send Tank Supplies Faster
- Ukrainian President Volodymyr Zelenskyy says Western supplies of [Full Story]
- TSA Confiscates Anti-tank Weapon at Texas Airport
- The Transportation Security Administration confiscated a portable [Full Story]
- House Dems Prepare for Denials on Three Key Committee Seats
- House Democrats are getting ready for the GOP leadership to deny key [Full Story]
- Noem ‘Not Convinced’ She Should Run for President
- South Dakota Gov. Kristi Noem said she’s “not convinced” a [Full Story]
- Suspect Arrested in Connection With Attempted Kidnapping of Barista
- A suspect has been arrested in connection with the attempted [Full Story]
- Video Report: Hamas Releases Unconfirmed Video of Israeli Captive
- On Wednesday’s “Wake Up America,” Newsmax’s Daniel Cohen reports on [Full Story] | video
- Ex-IMF Economist: US Has Overspent Because of Fractured Politics
- A former International Monetary Fund (IMF) chief economist blamed the [Full Story]
- Microsoft to Cut 10,000 Jobs as Tech Layoffs Intensify
- Microsoft is cutting 10,000 workers, almost 5% of its workforce, in [Full Story]
- Shoppers Left Scrambling As Amazon Unveils Deals That Shouldn’t Exist
- Online Shopping Tools
- More Newsfront
- Justice Charges Russian Founder of Crypto Exchange
- A Russian national who founded a cryptocurrency exchange that evaded U.S. regulations and became a haven for the proceeds of criminal activity has been arrested, federal officials said Wednesday…. [Full Story]
- Twitter Auctions Off Blue Bird Memorabilia
- Holiday Sales Miss as Inflation Stings Shoppers
- Lawyers Clash Over Whether Musk Lied in 2018 Tesla Tweet
- Trump Vows to Ban Chinese Investment, Ownership in US If President Again
- More Finance
- Study: Frequent Visits to Green Spaces Linked to Lower Prescription Medication Use
- New research from Finland shows that regularly visiting green spaces in cities, such as parks and community centers, is associated with reduced use of certain prescription medications. The association also included frequent visitation of blue spaces, such as lakes, said the…… [Full Story]
- Study: Fewer and Smaller Meals, Not Timing, Key to Weight Loss
- How Best to Cope With the Stress of Political News
- J&J to Discontinue HIV Vaccine Trial
- Moderna: RSV Vaccine 84 Percent Effective at Preventing Symptoms in Older Adults
- NOTE 1: The 3rd chart above of manufactured housing connected equities includes the Canadian stock, ECN, which purchased Triad Financial Services, a manufactured home industry finance lender.
- NOTE 2: Drew changed its name and trading symbol at the end of 2016 to Lippert (LCII).
- NOTE 3: 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.
- Note 4: some recent or related reports to the REITs, stocks, and other equities named above follow in the reports linked below.
Manufactured Home Communities (a.k.a. ‘Mobile Home Parks’ – SIC) – Exploring UMH Properties; Fellow Manufactured Housing Institute Member Yes! Communities Suits and Settlements; plus MH Markets Updates
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 MHProNews.
Tony earned a journalism scholarship along with numerous awards in history. There have been several awards and honors and also recognition 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.