Volume Buyers

Keeping you informed and updated!

Joint Investigation

Warren Buffett and his holdings in the manufactured housing industry have been in the news lately and none of it has been positive.  While congress is trying to roll back some of the tight regulations brought forth from the Dodd-Frank act, house Democrats are calling for a joint investigation from the Department of Justice and the Consumer Financial Protection Bureau.  Whether Democrats are truly targeting Berkshire-Hathaway’s subsidiaries Clayton Homes, Vanderbilt Mortgage, and 21st Mortgage over predatory lending allegations or if Democrats are simply attempting to demonstrate the importance of Dodd-Frank during debates we cannot be certain, however, allegations do exist.

The allegations surrounding Clayton Homes and its lending partners are of discriminatory lending toward low to moderate income minorities. Clayton customers have Reported to The Seattle Times saying they were, “misled into high cost loans they could not repay”.  Legislators are looking for the involvement of the CFPB because predatory lending practices, especially practices involving racial discrimination, would be a violation of the Dodd-Frank Act, the Equal Credit Opportunity Act, and the Fair Housing Act.

Clayton has not had much commentary on this matter but has said that their lending affiliates Vanderbilt Mortgage and 21st Mortgage are strictly monitored by both State and Federal regulators and that they offer lending products to a wider range of credit scores and due to their wider credit score acceptance they service loans for low to moderate income minorities at a higher density than their competitors.  Clayton also stated that for borrows with a credit score lower than 600 the average note rate was the same for both whites and non-whites.

Sam Gilford of the CFPB said allegations of predatory lending are concerning but declined to say if there were plans to open an investigation.

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January 19, 2016 Posted by | General Information | , , , , , , , , , , , , | Leave a comment

Baby Boomers

A Baby Boomer is someone who was born between 1946 to 1964.  To date, there are roughly 76 million boomers which is equivalent to 1 in 4 Americans. Boomers have very strong buying power and could really sway the housing market, because of their large buying power.  Kathleen Howley wrote an article for the Bloomberg (click here for the full story) discussing the record sales the housing industry is seeing.  Although this article features stick built homes in Oregon & Utah, this could directly affect our industry.   A majority of these boomers bought homes during the 80’s and 90’s, and with the price of real estate constantly growing, this has left them with a great return on their investment.  Boomers would rather pay cash for a home then be bogged down by a mortgage.

The Manufactured & Modular industry would be ideal for Baby boomers who are looking for custom homes at an affordable price.  We offer a way for them to uniquely design the floor plan and features that they want in their home.  I refer back to the presentation that Chris Nicely discussed with us at our last meeting.  Our industry can offer wide hallways, 360 degree bathrooms, smooth transition flooring, no step showers, grab bars, 36″ doors and no low or high appliances.  Even if boomers are up to date with all the technology today, they still want to touch and feel the product they are going to buy. It’s important to show these features in some of your display homes.  Don’t forget to display brand names!  Boomers still want luxurious products and rely on known brands; this also includes “Made in America.”  Here are four points to consider attracting baby boomers – capitalizing on nostalgia, avoiding stereotypes, emphasizing the product’s benefits, and considering product features that will make Manufactured & Modular homes the smart choice!

June 5, 2014 Posted by | General Information | , , , , , , | Leave a comment