It’s literally historic…
…it is a reminder why historic items matter…
…and we’ll do our customary fact-check and analysis at the end of this MHI exclusive report that they provided to MHProNews directly after the === ##===, below.
On Capitol Hill…MHI Advances Manufactured Housing Finance Reform
The negative impact of Consumer Financial Protection Bureau (CFPB) rules on the ability to buy, sell and finance manufactured housing loans was a topic at Thursday’s Senate Banking Committee hearing entitled “The Consumer Financial Protection Bureau’s Semi-Annual Report to Congress” thanks to efforts by the Manufactured Housing Institute.
Sen. Joe Donnelly, D-Ind., the sponsor of MHI’s priority legislation, the Preserving Access to Manufactured Housing Act (S. 682), highlighted the need for the bill by expressing concerns about the impact of CFPB rules, raising questions to CFPB Director Richard Cordray about the decline of manufactured housing loans since the CFPB regulations went into effect.
“We have previously discussed the impact of CFPB’s rules on manufactured housing lending and I do have concerns that the new rules would negatively impact the ability of the consumers to buy, sell or refinance these homes as financing for smaller balance loans is becoming more difficult,” Donnelly said.
Donnelly cited Home Mortgage Disclosure Act (HMDA) data that confirms that manufactured home lenders are not making loans that fall into the revised Home Ownership and Equity Protection Act (HOEPA) category. HMDA data shows that after HOEPA rule changes kicked in starting in 2014, manufactured housing lenders stopped making loans with the HOEPA designation, denying borrowers mortgage credit for these types of loans. While manufactured home loans of all size categories went down, the declines were largest for smaller dollar loans, the category of loans that the new rules impacted the most.
In comparison, overall mortgage loan data for all homes, meanwhile, shows a 2013 to 2014 year over year increase in the number of mortgage loans.
“The 2014 HDMA mortgage data shows that high cost manufactured home loans have basically evaporated at this point since the rules went into effect,” Donnelly said.
The Federal Reserve issued an analysis of the 2014 HMDA Data. They called the decline in manufactured home loans: “a precipitous drop in the number of loans originated in 2014 at the HOEPA price threshold, whereas, for 2013 – before the new threshold rules took effect – no such discontinuity was evident.
Senator Donnelly’s questions to CFPB Director Cordray helped make a compelling case for the legislative changes in S. 682, the Preserving Access to Manufactured Housing Act, which makes necessary adjustments to ensure financing is available for manufactured housing, while keeping in place the important consumer protections of the Dodd-Frank Act.
“The evidence clearly demonstrates that regulations implemented as a result of the Dodd-Frank Act have become a barrier to the financing needed for manufactured homes,” said Dr. Lesli Gooch, Ph.D., Senior Vice President of Government Affairs and Chief Lobbyist for MHI.
“The Preserving Access to Manufactured Housing Act contains two slight revisions to CFPB regulations that can spur lending without harming the consumer protections contained in the Dodd-Frank Act. Manufactured housing provides a key alternative to rising home prices and rental rates that are squeezing American buyers. To restore the American dream of homeownership for these credit-worthy families, these regulations must be fixed. We appreciate Senator Donnelly’s hard work to advance these simple, but meaningful, reforms. ”
If you have any questions, please contact MHI’s Senior Vice President of Government Affairs and Chief Lobbyist, Dr. Lesli Gooch, at (703) 558-0660 or firstname.lastname@example.org.
© 2016, Manufactured Housing Institute, Inc. (MHI), all rights reserved.
The font was changed in the MHI message above, otherwise, their message reads as it was sent to us, directly from MHI.
The word Redux in the Daily Business News on MHProNews headline is defined as meaning, “brought back; revived.”
Their message above was what marked a significant turning point for MHProNews, MHI, and in some ways perhaps – the industry at large. Frankly, this writer had no clue at the time that this email from MHI would be as important as it turned out to be. But not for the reasons that MHI wanted us – or readers like you – to apparently think.
- After their message came in, a news tip came in from an MHI source.
- That tip pointed us to CSPAN video, which after this writer view it, it became clear that what this message from MHI claimed included some technical accuracies, but that it was arguably deceptive and misleading.
- Rephrased, they were purportedly trying to fake out their own members.
Some where in the audience the day that Richard ‘Dick’ Jennison told attendees in Louisville in 2015 the he promised that Preserving Access would pass. But it never did.
When this writer called out Jennison and Gooch for the apparent deception that the MHI email above demonstrated, we did so with a level of expectation that then Chairman Tim Williams and others in Knoxville could be equally shocked and dismayed at what Jennison and Gooch had apparently authorized and sent out to MHI members.
That proved to be naïve, too. But that was part of the wake up call, wasn’t it?
To understand MHI, or manufactured housing today, one must be willing to do what Sam Zell said. When others are going left, look right.
Don’t allow yourself to be a lemming in the MHI crowd. Don’t follow the MHI echo chamber that tells lemmings to go over the proverbial cliff, which is what lemmings are prone to do. Arguably, that’s what the powers that be in the Omaha-Knoxville-Arlington axis want, lemmings that die or sell out cheap, so that the big boys can grow larger on the bones of what used to be your business.
It should be apparent that if they send one deceptive message out, they could others. Have they ever issued a correction on this one, above? Or on Duty to Serve? Or the MHI claim of Momentum, when the industry was getting ready to enter into a now 7 month long downturn?
The family here was off, which meant I got the joy of doing this late tonight, after doing a hefty special report on MHLivingNews, linked below.
Abraham Lincoln was right.
To understand the true nature of the ‘rigged system’ in the manufactured home industry today, one must get regular dose of fact and reality checks. Few are as poignant as this one, above, which quoted MHI word for word.
We each learned in our own time and in our own – often hard – way how far they could be trusted, didn’t we?
With no further, adieu, see the week that was, below.
What’s New on MHLivingNews
What’s New in Washington, D.C. from MHARR
MHARR Launches “Fighting Discriminatory Zoning Mandates” Manufactured Housing Project | Manufactured Housing Association Regulatory Reform
Washington, D.C., May 15, 2019 – With manufactured housing producers, retailers and communities offering their best homes (and related consumer protection) ever, and in light of the failure of the ostensible representation of the industry’s post-production sector to fully and effectively advance the marketing, consumer financing and, most importantly, the full acceptance of federally-regulated manufactured housing as the nation’s premiere source of non-subsidized affordable housing and homeownership, the Manufactured Housing Association for Regulatory Reform (MHARR) has launched a new project and initiative to fight selected, especially egregious instances of discriminatory and exclusionary zoning targeting manufactured housing and manufactured housing consumers.
What’s New on the Masthead
- Ultimate, Proven Contrarian Investing – Ethical vs. Unethical, Legal vs Illegal Manufactured Housing Industry Strategies
What’s New on the Daily Business News on MHProNews
That’s it for our recap of the week from 5.12.2019 to 5.19.2019, here where “Industry News, Tips, and Views Pros Can Use” © was born and thrives, and where “We Provide, You Decide.” © ## (Industry news, commentary, fact-checks, and analysis.) ##
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By L.A. “Tony” Kovach – for MHProNews.com.
Tony is the multiple award-winning managing member of LifeStyle Factory Homes, LLC, the parent company to MHProNews, and MHLivingNews.com.
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The last decade-plus has not been especially kind to the manufactured housing industry and consumers of affordable housing. The 21 stCentury began with a great deal of promise for the industry and consumers alike.
HUD Code Manufactured Home Production Decline Continues, May Updates | Manufactured Housing Association Regulatory Reform
Washington, D.C., May 6, 2019 – The Manufactured Housing Association for Regulatory Reform (MHARR) reports that according to official statistics compiled on behalf of the U.S. Department of Housing and Urban Development (HUD), year-over-year HUD Code manufactured home production declined once again in March 2019.
HUD Study, Analysis of Zoning Discrimination Against Manufactured Housing Sought | Manufactured Housing Association Regulatory Reform
MHARR SEEKS HUD STUDY AND ANALYSIS OF ZONING DISCRIMINATION AGAINST MANUFACTURED HOUSING Washington, D.C., April 8, 2019 – The Manufactured Housing Association for Regulatory Reform (MHARR), in an April 4, 2019 meeting with HUD policy, analysis and research officials, called on the Department to conduct nationwide research – and follow-up analysis – concerning local zoning mandates that discriminatorily exclude or drastically restrict the placement of federally-regulated manufactured homes to the detriment of lower and moderate-income American families in large areas of the country.
Washington, D.C., November 15, 2017 – The Board of Directors of the Manufactured Housing Association for Regulatory Reform (MHARR) has authorized the public release of a comprehensive internal study by the Association of the past, present and future representation of the post-production sector (PPS) of the federally-regulated manufactured housing industry.
Independent National Manufactured Housing Post-Production Association Takes Major Step | Manufactured Housing Association Regulatory Reform
Washington, D.C., January 8, 2019 – The National Association of Manufactured Housing Community Owners (NAMHCO), a new, independent association representing a key manufactured housing industry post-production constituency, has announced a major step in its initial organization and the start of national-level advocacy activities to better and more effectively represent the post-production sector in Washington, D.C.