National Registry of ALL Lenders, Selling House Trailers, & Predatory Practices….
Blog # 435 Copyright @ 26 February 2017; community-investor.com
Perspective. ‘Land lease communities, previously manufactured home communities, & ‘mobile home parks’, comprise the real estate component of manufactured housing.’
This blog posting is the sole national advocate voice, official ombudsman & historian, research report & online communication media for North American LLCommunities.’
To input this blog &/or affiliate with Community Owners (7 Part) Business Alliance, a.k.a. COBA7, use official MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764.
COBA7 Motto: ‘U Support US & WE Serve U! Goal of its’ print/online media = to
‘Not only inform & opine, but transform & improve MHBusiness model performance!’
INTRODUCTION. Very much a mixed bag of industry and asset class news today!
Just like January’s the 28th edition of the ALLEN REPORT, was the ‘biggest & best’ to date (28 years!), similar is the case of the 19th edition, National Registry of ALL Lenders Serving the MHIndustry & LLCommunities Nationwide! Nowhere and at any time will you find a more comprehensive description of real estate-secured and chattel capital markets and loan originators than with this document! It also includes timely information about Lease-option methodology.
Guess it was bound to happen. A HUD-Code home manufacturer, selling new Community Series Homes into land lease communities, has stirred up some ire due to product design and quality issues, along with customer service and reimbursement matters. This might be the acid test for a HUD administrator, to see whether timidity or action will prevail.
Finally; have you ever wondered just what makes the Allen CONFIDENTIAL! business newsletter so valuable to the several dozen executives who read it each month? Well, here’s a late breaking story for you to peruse.
’19th National Registry of ALL Lenders’, to Rock Communities!
Have you made arrangements to receive your copy of this seminal document? If not, don’t delay doing so, as it will be distributed with the March issue of the Allen Letter professional journal.
So, what’s all the ‘buzz’ about this time around? First off, there’re no fewer than 27 real estate-secured mortgage brokers and lenders listed – that’s a record number in the 19 year history of this Signature Series Resource Document, or SSRD. But that’s not all!
The total dollar amount of land lease community acquisition and refinance loans originated during year 2016, exceeds $6,385,700,00.00. Seriously.
And the 2016 ‘record production level’ is UP from $4,175,000,000.00 in year 2015; and, UP from $3,870,500,000.00 the year before (2014). And looking back farther, year 2013 = $2.9 billion; 2012 = $2.3 billion; 2011 = $1.9 billion; and, 2010 = $1.1 billion.
Besides $ origination ‘statistics’, the 19th National Registry of ALL Lenders contains the names and telephone numbers of more than 40 mortgage/loan originators working for at least 27 firms! Where else in the manufactured housing industry are you going to find a more comprehensive statistical resource and contact directory than this? You’re not, as it simply does not exist!
To arrange to receive a copy of this SSRD, phone the Official MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764, and affiliate with COBA7 at the Option II or III level.
NOTE. We’re still working on the chattel capital portion of the National Registry. This segment is different. Polled 40 chattel capital resources but only one responded with loan origination data for year 2016. Interesting. So, the chattel capital portion of this year’s National Registry is be a directory of more than two dozen individuals and firms to contact, when in search of chattel capital for on-site seller-financing of new HUD-Code homes.
Selling Horse Trailers & House Trailers as MHRetailers
In last week’s blog posting (#434) this salient observation was made about an errant HUD-Code home manufacturer:
“One HUD-Code home manufacturer is drawing the ire of some land lease
community customers, for what they describe as ‘major construction defects
in single and multi section homes’, as well as less than marginal customer
service, and slow-to-no payment for repairs after delivery. COBA7 is being
pressed to provide a public forum where business customers can air these
complaints, as apparently no national advocate of the manufactured housing
industry will do so at this time. Geesh! And just when we’re, as an industry,
starting to recover!”
Well, here’s a response we received from a former ‘mobile home’ dealer, who sold everything from house trailers to horse trailers, and owned more than a half dozen (then) mobile home parks containing more than 1,000 rental homesites:
“WELCOME TO THE WORLD OF RETAILING MOBILEHOMES!”
Know what? That just isn’t right! Many of us believe the industry has moved beyond the self-defeating, image-destroying practices just described. But no, guess we haven’t, when a manufactured housing factory defaults to chicanery to ship more homes.
What to do about this sorry matter? The easy solution would be for HUD’s manufactured housing program administrator to send a trusted, qualified, experienced, motivated inspection team to the firm’s plants in question, to learn firsthand how and why such marginal quality product is making it out of the factory, and into land lease communities in affected regions.
Will this happen? I doubt it – but we can hope it will. Given the political turmoil in Washington, DC., these days, with a new administration making its’ way through an economic and regulatory morass (i.e. ‘Drain the swamp!’), it stands to reason HUD political, even career appointees, might be reticent to ‘sticking their necks out’ to rectify a matter like this – when ‘just the opposite’ should be the case! How so? As some say, ‘The best defense is a good offence’, so why not investigate one allegedly mal-performing interloper; make appropriate decisions; and act accordingly?! Simply shows one is ‘doing ones’ job’ protecting the greater good (industry) from the taint of a few. Let’s wait and see what occurs.
Bottom line? Either timidity well prevail, or ‘cowboy hats & boots’ will fly!
FLASH ANN OUNCEMENT. Now there’s a new developing story, coming out about another brand of HUD-Code manufactured home, this time having to do with an across-the-board $500.00 per new home price increase, ostensibly having to do with an increase in lumber price. Will look into it further, and perhaps ‘tell more’ in next week’s blog posting at this website.
MHAction blasts predatory practices of private equity firms
Have you wondered what you’re missing by not reading the Allen CONFIDENTIAL! business newsletter each month? It’s the Option III level of affiliation with COBA7 and is comprised of MHIndustry & LLCommunity news and views you’ll read nowhere else. With that said, here’s the lead off paragraph from the March 2017 issue of TAC!
Thursday evening, 23 February, nearly three dozen individuals participated in a conference call hosted by MHAction. Yes, that’s an ‘allenism’, or abbreviation, of ‘Manufactured Housing Action’. MHAction leaders were joined by representatives from New York Communities for Change, Tenants & Neighbors New York City, and Alliance of California Communities Enforcement – or words to that effect.
Goal of the conference call? Share and discuss what’s happening around the country, relative to’ predatory practices of private equity firms’ practices hurting their homes and communities via marginal maintenance, lack of infrastructure care, raising rent, and reducing services.
Firms identified during the conference call? Camelot Meadows, an ELS, Inc., LLCommunity in MD; Heritage community, as part of Brookfield Properties; Blackstone’s rental homes; Colony; RVHorizons; and, Westbrook, another ELS, Inc., LLCommunity, in Utah.
End result? Plans for a National Day of Action on 10 April 2017. There was one humorous quip. When LLCommunity homeowner/site lessees talked of putting protest signs in their windows, saying: ‘Sweep Predatory Companies From Our Community’, one of the reps from New York City suggested his sign would likely go unread, as his apartment is on the 16th floor of a high rise building.