Blog Posting # 748, Copyright 30 June 2023. EducateMHC
Parallel Perspectives. HUD-Code manufactured housing is federally-regulated, performance-based, affordable factory-built housing! And land lease communities (a.k.a. manufactured home communities & ‘mobile home parks’) comprise the investment real estate component of manufactured housing! EducateMHC alone is the online advocate, historian, trend tracker, and text resource for these two business models! To input this blog or connect with EducateMHC, telephone (317) 881-3815, email: gfa7156@aol.com, or visit www.educaatemhc.comn, to order Community Management in the Manufactured Housing Industry. This is the sole professional community management text in print today! And SWAN SONG is a history of land lease communities, and official record of annual MH production totals since 1955; and my autobiography, from SmittyAlpha6 to MHMaven – describes combat adventures in Vietnam and 40+ years business career in MH and community ownership/management.
George Allen, CPM®Emeritus, MHM®Master, Emeritus member of the Manufactured Housing Institute (‘MHI’), RV/MH Hall of Fame enshrine, retired lieutenant colonel of U.S. Marines, and author/editor of 20 books about MH, communities, business & management wisdom & prayer.
IT’S OK TO BE CONFUSED!
Did you see it? Did you read it? Did you understand it? In any event, it’s OK if you’re confused by the world’s longest title (Or was it a headline?) quoted here:
“Trojan Horse-Looming Impact? Troubling Questions, History Raised on Potentially Deceptive ‘Bait and Switch’ Housing Legislation Posed to Harm Manufactured Home Industry? Facts and Analysis.” Yes, that’s ‘whatever it was’ in its entirety. Does it make sense to you? Me neither, even after I read and reread all seven single-spaced typed pages.
So, what’s the genesis of this mysterious document? “A ‘discussion draft’ of housing legislation being circulated by Senator and 2024 Presidential Candidate Tim Scott (SC-R) is raising serious questions and concerns about its intent and potential impact on manufactured housing regulations and the manufactured home market.” So, something to which we should pay attention.
Well initially, the unnamed author or authors*1 offer what is couched as an ostensible expose’ within the manufactured housing industry, but soon winds up an ostentatious (‘pretentious display’) of animus towards the “…Berkshire Hathaway (BRK’) and Clayton Homes, Inc. – affiliated lenders, 21st Mortgage Corporation and Vanderbilt Mortgage and Finance (‘VMF’).” Specifically, the expose’ writers are concerned this bill would force the Consumer Financial Protection Bureau (‘CFPB’) to rewrite regulations to “allow for salaried originators of residential mortgage loans, that originate small dollar mortgages (i.e. original principal obligation of not more than $70,000), to encourage additional lending for small dollar mortgages.” The downside? Gives the animus targets increased ability to sell more new HUD-Code homes.
And two paragraphs later, “The other significant provision on the proposed ROAD*2 bill would remove the requirement for a ‘permanent chassis’ that is part of the definition of ‘manufactured home’ contained in both federal manufactured housing law and regulations.” Now there’s something to get one’s teeth into, as ‘permanent chassis’ has been part of manufactured housing since 1974-76, and a contentious matter during times past.
So, what do the author/authors of this warning message appear to fear? “While superficially appealing, the potential impacts of these provisions – and particularly the change in the definition of ‘manufactured home’ contained in the industry’s federal regulatory law – could be extremely far-reaching and could include many unintended (or quite possibly intended) negative consequences.”
At this point in the seven page treatise, the writer(s) go down into the weeds of past MH history and internecine squabbles of years past re chattel finance and permanent chassis removal.
That’s as far as I’m going to take you in this week’s blog posting. You should certainly want to read more. To obtain a copy of ‘Trojan Horse-Looming Impact?’ phone MHARR via (202) 783-4087 and request a copies of their cover letter and ‘discussion draft’ of ROAD to Housing Act.
In the meantime, share your feelings about this matter (i.e. expose) and the two issues pursued (i.e. relaxed financial regs relative to chattel capital, and the ‘permanent chassis’ matter. Do so via gfa7156@aol.com
End Notes
- Author or authors? While the document is published on MHPro News letterhead, and mention of MHARR is made within the instrument, no individual names are listed. But for MH folk, the unique writing style and extreme wordiness, as well as predilection, suggest the sourcing. Your guess?
- ROAD = abbreviation for Renewing Opportunity in the American Dream to Housing Act, which was publicly released to the Senate Banking, Housing and Urban Affairs Committee on 25 April 2023.
Identity Theft Prevention Checklist
While the following six suggestions have been around for a while now (since 2003), they’re worth repeating here:
- Check your credit report annually
- Review your bills and statements on a regular basis
- Guard your mail and trash from theft. Use a shredder.
- Use caution when giving out personal information
- Copy the contents of your wallet or purse
- Report lost or stolen checks or credit cards immediately
George Allen