Volume Buyers

Keeping you informed and updated!

Manufactured Home Shipments

Again we are seeing an increase in housing sales.  Nationwide this year’s year to date is 19.3% higher than last year with unit sales increasing by 5,249 homes.  Overall the housing market is looking good, and we are beginning to be able to take advantage of it.

Maine and Connecticut, +97.4% and +188.2%respectivly, are the two states that have seen the biggest increase in manufactured housing shipments as the housing and job market stabilization is finally planting roots on the Northeastern coast.

Some in the Midwest such as the Dakotas and Wyoming have seen a decrease in manufactured housing sales but this is mostly due to the seasonal and volatile nature of jobs in the Oil industry.  The drop in sales in this region is more reflective of the Oil industry than it is the housing industry.

Overall sales are up nationally and I’ve spoken with several bankers and realtors from my area expressing that the flood of foreclosures that had been on the market has begun to dry up and property values are on the rise.  Due to the rising property values and the shrinking inventory of existing homes in the housing market, new buyers are being forced to either site-build or turn to manufactured housing as a way of becoming homeowners or purchasing their next home.

July 26, 2016 Posted by | General Information | , , , , , , , , , , , , , | Leave a comment

7 ways you don’t want to enable buyers to abuse you

Fred Ashforth, sales coordinator at Titan Homes, found this article and was sharing it with his co-workers. The article was then brought to my attention by my sales rep, Ron Major, at our Open House last weekend.  I discussed it with my team this morning at my sales meeting. I thought I would share it with all of you! Have a great weekend!

From Close the Deal: Smart Moves for Selling by Sam Deep and Lyle Sussman©2000

 

  1. Don’t give buyers free consulting.

Yes, buys should get all the information they need to make an informed buying decision. They shouldn’t, however, “pick your brain” or let you serve as an unpaid consultant. You can help buyers discover that you can help them solve their problem. Don’t show them how until they become customers.

 

  1. Don’t prepare detailed, costly proposals without assurance that the proposal will receive serious consideration.

Buyers should receive a written proposal if they ask for one. Some buyers ask for one after a decision has been made, just to get multiple bids. Don’t play the game. Get a guarantee that the proposal will be reviewed fairly.

 

  1. Don’t allow you and your proposal to travel up and down the buyer’s organizational hierarchy.

In your up-front contract, clarify the buyer’s decision-making process. Get an agreement that each presentation you make will be followed by a mutually agreed upon action by the buyer. Stick to your position.

 

  1. Don’t tolerate open-ended indecisiveness.

If buyers think you’ll hang around indefinitely, they are in no hurry to make a decision. Extract an up-front agreement on some length of the buying cycle. If time starts to drag, impose the limit.

 

  1. Don’t let your products or services be demeaned.

Some buyers will minimize what you do and what you sell. If you allow that to pass without a challenge, you’re reinforcing the notion that you’re just another salesperson with a product no better than anyone else’s. If you don’t show respect for your product, and company, who will?

 

  1. Don’t let your company or coworkers be demeaned.

Be open and candid in accepting responsibility for past failures. At the same time stand up for the integrity, competence and commitment of your team. Buyers who demean your people to your face are saying even more to others behind your back. Be sure they have the facts about any situation s they claim to have knowledge of. Defend the honor of the good people who work in your company. Your loyalty will not be lost on buyers.

 

  1. Don’t enable buyers to put you in ethical or legal dilemmas.

Should you bend over backwards to get a sale? Certainly. Should you marshal all the resources at your disposal to make the buyer happy? You bet. But don’t ever let that mean that you compromise your integrity or sell your soul.

 

April 15, 2016 Posted by | General Information, Uncategorized | , , , , , , , , , , , , , , | Leave a comment

Julian Castro & Doug Ryan

In recent news two fairly exciting things have happened for the manufactured housing industry.  Manufactured housing has begun to escape its dated reputation for being poor in quality, dangerous, and vulnerable to predatory lending practices.  Through the hard work of manufacturers in the development of new production methods, materials, and technology the industry has taken great strides to compare with and now exceed the quality and visual appeal of their site-built counterpart.  At the same time retailers, affordable housing advocates, and consumers have worked to educate politicians, lenders, and other potential home owners of the new realities in manufactured housing.

Recently the U.S. Secretary of Housing and Urban Development, Julian Castro, gave a speech praising the manufactured housing industry not just for offering a more affordable alternative to site-built homes, but for creating safe and energy efficient homes as well. Clearly manufacturers have made enormous strides in the quality of their product if they have gone from being shunned by the general public to being the center of praise and great admiration by a man whose job is to help Americans have access to quality and affordable housing.

In conjunction with Julian Castro, Doug Ryan, a man who has been at the forefront of lending reform with the Federal Housing Finance Agency is trying to make changes that would affect roughly 35% or manufactured housing consumers.  Currently manufactured home buyers who are putting homes on land they own are able to take advantage of conventional mortgage specifications because they are able to borrow money for the homes as real estate while most people who are borrowing to purchase a home that will be in a community or other form of leased land must classify the loan as chattel or personal property.  Doug is proposing to make lending changes that would allow for better lending treatment for leased land buyers by creating incentives for Fannie Mae and Freddie Mac to become involved in leased land lending.

Without getting into too much detail about the extreme financial differences between chattel loans and real estate loans, it is appropriate to state that those difference can be a deciding factor as to whether a person decides to buy or not.  When we see Doug Ryan making strides to increase borrowing opportunities for a group of people that make up 35% of our consumers, it gives all of us a reason to be excited.

Click here to read the whole article

December 17, 2015 Posted by | Financial Information, General Information | , , , , , , , , , , , | Leave a comment

Doug Ryan, CFED & CFPB

With the Preserving Access to Manufactured Housing Act moving through the legislative bodies lending is a hot button issue in our industry.  Recently MHLivingNews has brought Doug Ryan under fire, building a case that the CFED (Corporation for Enterprise Development) is currently engaged in a conflict of interest with the CFPB (Consumer Protection Financial Bureau).  Both the CFPB and the CFED claim to be consumer advocates.  The CFPB aims to protect consumers from predatory lending while the CFED aims to make sure lending does not become regulated out of existence.  The case for the conflict of interest with Ryan is built on questionable funding. CFED receives a portion of their funding from the CFPB and Ryan refuses to disclose how large of a portion that funding is.

In the article by MHLN the CFPB is quoted as stating that the largest MH lenders are predatory and that the producers are greedy.  It would make sense that suspicion would arise when an organization accepts essential funding from another organization that is in direct philosophical opposition.  Though the article’s purpose was to discuss Doug Ryan and MHLN’s frustration with his actions, what I found most striking was the immense difference between funding for new homes and funding for used homes.  My business deals in new MH and the lending we use is a traditional mortgage, the same as a person would seek when buying an existing or site-built home. Conventional loans are a common occurrence with our new homes.  Hearing that regulation has become so tight that lenders who once helped consumers purchase used homes in the $20K and lower range have backed out of the market because originating smaller loans has become unprofitable is unfortunate.  The CFED makes the argument that sub-prime lending for used homes is not a danger to America’s financial infrastructure the way sub-prime lending led to the most recent housing collapse.   Even though this sub-prime lending does not pose a danger to society, on an individual basis, the structure of a sub-prime loan can still create a lot of stress and potential risk toward the borrower.

The arguments on both sides of the issue are compelling and each hold merit.   Predatory lending and putting profits ahead of ethical behavior is harmful to the society an institution serves.  Likewise, if an institution is unable to generate profits it cannot operate efficiently and will then fail to be capable of serving society.  Forcing people to conduct themselves ethically is a sticky tar pit, but as James Madison wrote in the Federalist Papers #51, “If men were angels, no government would be necessary”.

July 7, 2015 Posted by | Financial Information | , , , , , , , , , , , , , , | Leave a comment

Saving the Middle Class

Affordable Housing has been a hot-topic issue since before the housing crisis and has become even more of a burning issue since the fall out.  Affordable Housing has always had its share of the housing market but demand is on the rise.  Overall home purchases are down for the ninth straight year in a row and home ownership has dropped to 65%, the lowest it has been since 1995.

Since the housing crisis there has been a strong trend toward apartment rentals, friends rooming together, and moving back in with mom and dad.  The percentage of 25-35 year olds living with their parents is at 36%. This was a slow and steady trend for the least four decades that jumped from 32% to 34% in just the two years of the 2007-2009 recession, and reached its peak in 2012.

Bill Matchneer, a lawyer and former council member for the CFPB, states that manufactured housing is a dire need in the affordable housing market and that its increase in market share is inevitable.  As most of us know the mobile home industry has had a stigma against it from historical quality issues and the disparity of land leased communities.  Due to the HUD code, set in place in 1976 and revised in 1994, the quality standard of manufactured homes has taken tremendous strides in both structural and environmental impact quality.  Bill Matchneer is quoted, “The modern manufactured home is equivalent to site-built at about half the price”.  On the topic of land lease communities, Paul Bradley of ROC USA and organizations like it are helping to increase the quality and appraisal value of homes in land lease communities by assisting residents in the purchase of the community.  ROC USA consults with residents, helping them to form a co-op to purchase the community as well as lending the co-op the necessary funds to purchase at affordable rates.  These co-ops are also given some preferential treatment such as being allowed the first offer when their community is put up for sale.  Studies have shown that communities owned by residents have higher property value, more stable rental fees, and maintain a higher quality of living than their counterparts.  Megan Neff of NextStep, an organization that works through a channel of non-profits, is also helping to increase structural and lending quality by creating a connection between the needs of buyers and the vision of manufacturers.

Datacomp Appraisal Systems, having conducted an appraisal study comparing manufactured homes to site-built homes, came to the conclusion that the old adage of “location, location, location” equally applies to both housing categories.  Datacomp, with no bias toward either industry stated, “When properly sited and maintained, manufactured homes will appreciate at the same rate as other homes in surrounding neighborhoods”.  This revelation of appraisal values is important to understand as the majority of middle-class wealth is comprised of home ownership.  Studies from the Federal Reserve show that homeownership is the cornerstone of middle-class wealth.  The average middle-class home owner has a net-worth of $194,000.00 about 36x that of their renting counterparts who have an average net-worth of $5,400.00.

This information poses some serious questions about the manufactured housing industry.  The first and most obvious question is, “Can manufactured homes save home ownership?”  The second question, only visible when examining what home ownership in America truly represents, “Can manufactured homes save the middle-class?”

June 3, 2015 Posted by | General Information | , , , , , , , , , , , , , , , | Leave a comment

The Truth in Lending Act

TILABeginning on June 1st, 2013, The Truth in Lending Act or TILA ban on mandatory arbitration provisions in certain mortgage loans became effective.  This has effected applications received on or after the June 1st deadline.

Under this ban, lenders using the loan documentation that contains such requirements will be required to remove them for loans covered.

Now make sure you note that this bans does implement a provision of the Dodd-Frank Act.  The provision bans “terms that require arbitration or any other non-judicial procedure to resolve any controversy or settle any claims arising out of the transaction.”

Lenders using loan documentation that contains such requirements will be required to remove them for loans covered under the ban. The ban implements a provision of the Dodd-Frank Act that bans “terms that require arbitration or any other non-judicial procedure to resolve any controversy or settle any claims arising out of the transaction.”

There is more detailed information here about the regulations, Regulation Z, and additional links for more resources on this news.

July 2, 2013 Posted by | Legislation | , , , , , , , , , , , | Leave a comment

West Virginia Housing Institute Inc.’s 2013 Convention

There is an interesting opportunity on the horizon — a housing convention in West Virginia!  The West Virginia Housing Institute Inc.’s 2013 convention will be held at the Stonewall Resort in North Central West Virginia from the 24 – 26 in June.  

Co-Presidents, Kevin Wilfong and George Gunnell, invite you to attend this convention that has said to have an exceptional line up.  The line up for this year’s convention includes:

  • Tim Williams who is the head of 21st Mortgage Corp., and he will be presenting on industry financing
  • G. Kent “GK” Magelson who is with the American Society of Asset Protection in Las Vegas will be sharing how to reduce your taxes and help to avoid lawsuits
  • There will also be housing professionals on hand including legal panel of general counsel – John Teare, board member – Johnnie Brown, expert from Huntington – Jason Stemple, Chief Regulator – Mitch Woodrum, President of West Virginia Coal Association – Bill Raney and an official from Champion Homes.

There will be a second-evening banquet, political action funding raising auction and the statewide meeting.  There is a lot packed into these days but don’t forget to attend the sponsored breakfast on June 26th!

Don’t forget about the recreational fun you get to enjoy while at the Stonewall Resort.  Take a stroll down the trails near the lake and park or how about a two-hour lake cruise with legal beverages and heavy snacks.  You could attend the Phil Fogleman’s special wine-tasting program or play a round of golf at the Arnold Palmer-designed course.

Join this convention in June and fill out this registration form.  Please don’t forget to call the Stonewall to make your reservations.

**Note — the rooms are limited at this location so reserving a room is strongly suggested as soon as you know you will be attending.  Call today 304.269.7400 or 1.888.278.8150.There has been a negotiated rate of $149.18/night.

May 30, 2013 Posted by | Events | , , , , , , , , , , | Leave a comment

Breakfast Briefings and Certification Courses!

Breakfast meetings are coming to your area soon.  The most immediate one coming up will be on March 6th, 2013 at the Sky Harbor Community Center in Cheektowaga, NY.  Here you will be able to meet, receive valuable information and network!

At this particular breakfast, members will have the opportunity to learn about the new Federal and State Regulations.  The legislation could have a negative impact our industry so we need to stay informed.  There will be NYS Building Code Division representatives discussing new codes and what codes have been updated.  Financial information will also be discussed.

Registration and breakfast begins at 8:30am and the meeting follows from 9:00am to 12:00pm.  The registration fee is $30.00 per person and is nonrefundable.  The registration form can be found here.

If Cheektowaga is not local enough for you, there are other meetings!  On April 3rd there will be a meeting in Riverhead and on May 15th one will be held in Rochester.

Another convenience for members is that certification courses has been scheduled in conjunction with the regional meetings.  A Continuing Education Course will be held the same day as the meeting.  Other courses will be held the following day.  Here is information on those courses and more can be found on the NY Housing website.  You may also contact at the Association Office for more information.

3-Hour Continuing Education Courses

  • March 6 Buffalo: Sky Harbor Community Center
  • April 3 Riverhead: Glenwood Village
  • May 15 Rochester: Harper Park

3-Hour 21B Introductory Course and 6-Hour Mechanics Certification Course

  • March 7  in Buffalo, NY: Sky Harbor Community Center
  • April 4 Riverhead: Glenwood Village
  • May 16 Rochester: Harper Park

February 28, 2013 Posted by | Events | , , , , , , , , , | Leave a comment

Congress Passed Extension Package to Avoid the “Fiscal Cliff” – Including…

 …Extension of Tax Credit for Energy Star Manufactured and Modular Homes

Congress approved legislation or the H.R. 8, the “American Taxpayer Relief Act of 2012” on January 1st, 2013.  The legislation averted the “fiscal cliff” which extended a number of expiring tax provisions.

“Highlights of the “American Taxpayer Relief Act” include a permanent extension of the 2001 and 2003 (“Bush”) tax cuts, at least for taxpayers with incomes below certain thresholds, changes in basic tax rate structure, and extension of the capital gains tax rate structure. The estate and gift tax rules applicable in 2012 were also made permanent, and estates worth up to $5 million ($10 million for married couples) will go untaxed. In addition, a provision tying the exemption to inflation increases the estate tax exemption to estates worth $15 million for married couples by 2020.”

The “ATM patch” or the alternative minimum tax exemption amount was extended by H.R. 8 which expired at the end of 2011.  It also temporarily extended numerous American Recovery and Reinvestment Act provisions. Other provisions that will now expire at the end of 2013:

• Research and experimentation tax credit (extension and modification)

• Provisions directed at individuals

• Deduction for certain expenses of elementary and secondary school teachers

• Parity for exclusion for employer-provided mass transit and parking benefits

• Deduction for mortgage insurance

“Included in these extended tax provisions, in a significant victory for the factory-built housing industry, was the New Energy Efficient Home Credit (I.R.C. 45L) through December 31, 2013. This credit, which had expired at the end of 2011, provides builders of Energy Star-qualified manufactured homes with a tax credit of $1,000 (per home) and builders of modular homes with a credit of $2,000 (per home).” (MHI, 2013)

January 10, 2013 Posted by | Legislation | , , , , , , , , , , , , , | Leave a comment

2012 Convention a Huge Success!

Congratulations are in order for everyone who attended the New York Housing Association’s 62nd Annual Convention in Verona, NY at the Turning Stone Resort & Casino.  The convention was from October 25th – 26th, 2012 and was described as a huge success!

These two days were filled with informative seminars, inspiring speakers and a trade expo that was industry specific.  The master of the ceremony was Jim Freyer, Jr. who is the CEO of Haylor, Freyer & Coon and spoke to the attendees and even introduced President Joel Harper who spoke about his experiences over the past year.  Jason Boehlert also spoke on such issues as Dodd Frank Wall Street Reform Act, the SAFE Act, the Consumer Protection Credit Bureau and much more.

Some examples of other presentations included:

  • 20 Easy Marketing Ideas that Won’t Break the Bank (by Beth Monicatti-Blank)
  • Recent updates to the NYS Building & Energy Codes (by Brian Tollisen)
  • Valuation & Appraisal of Manufactured Homes (Sherrie Clevenger)
  • Measuring Consumer Satisfaction & Customer Loyalty (Joe Adams)

The NYHA had their annual meeting, members elected the officers for 2013 and the 2013 budget was approved.  Susan Underwood spoke about loan programs and there was a panel presentation following which discussed a variety of lending programs.

Thank you to all who attended and we hope you had a great time!

November 28, 2012 Posted by | Events | , , , , , , , | Leave a comment