Despite Steep Production Decline, Manufactured Housing Institute Gives Fannie Mae and Freddie Mac a Pass
Manufactured Housing Association for Regulatory Reform (MHARR) Manufactured Home Shipments Top 10 States June 2023 vs. June 2022 Graphic/Chart
Manufactured Housing Association for Regulatory Reform (MHARR) provides the latest federal manufactured housing data compiled by IBTS for HUD.
— Mark Weiss, J.D., President and CEO of MHARR.
WASHINGTON, D.C., UNITED STATES, August 4, 2023/EINPresswire.com/ — 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), HUD Code manufactured housing industry year-over-year production declined again in June 2023. Just-released statistics indicate that HUD Code manufacturers produced 8,169 new homes in June 2023, a 28.1% decline from the 11,373 new HUD Code homes produced in June 2022. Cumulative production for 2023 is now 43,888 homes, a 28.8% decrease from the 61,659 homes produced over the same period during 2022.
A further analysis of the official industry statistics shows that the top ten shipment states from January 2023 — with monthly, cumulative, current year (2023) and prior year (2022) shipments per category as indicated — are:
See June 2023 vs. June 2022 MHARR Shipment Graphic
The statistics for June 2023 produce one change from last month, moving Georgia into 6th place, ahead of Michigan.
The continuing steep production decline illustrated by these statistics, is the result, in substantial part, of the complete failure of Fannie Mae and Freddie Mac to provide securitization and secondary market support for manufactured housing chattel loans under the Duty to Serve (DTS) mandate. For 15 years since the enactment of DTS, the mortgage giants have failed to provide any support for these loans, despite the fact that they represent some 80% of the manufactured housing market and provide access to the industry’s most affordable homes. If DTS were implemented, in a market-significant manner, that factor, in itself, would draw new lenders into the HUD Code financing market and reduce interest rates through increased competition and lowered risk.
…the Manufactured Housing Institute (MHI), representing the industry’s post-production sector, in recent remarks to a DTS “Listening Session,” “commended” Fannie Mae and Freddie Mac for their “efforts” regarding DTS…
MHARR, for its part, continues to press the Federal Housing Finance Agency (FHFA) for the full, complete and robust implementation of DTS in all HUD Code consumer financing markets.
The Manufactured Housing Association for Regulatory Reform is a Washington, D.C.-based national trade association representing the views and interests of independent producers of federally-regulated manufactured housing. ##
The full MHARR release including additional linked items is found at the link below.
About MHARR Brief History and Objectives
Years of Publicly Available Monthly HUD Code Manufactured Home Production and Shipment Data
Q&As with MHProNews of former MHI V.P., MHARR Founding President and CEO, and currently MHARR Senior Advisor, Danny Ghorbani.
Ghorbani discusses topics based on his decades of inside, expert views on the Manufactured Housing Improvement Act of 2000 (MHIA) and its “enhanced preemption” provision that HUD could use to overcome local zoning barriers. Ghorbani is an RV MH Hall of Fame inductee.
Ghorbani also discusses a ground breaking look at genesis of Department of Energy (DOE) manufactured housing energy rule and evidence of MHI’s role in that process.
MHARR Issues and Perspectives – Evidence-Based Views of MHARR President and CEO, Mark Weiss, J.D.
The collection of MHARR Issues and Perspectives linked above includes the following recent topics.
> “The Duty to Serve — A Cruelly-Unfulfilled Promise and Mandate” MHARR – ISSUES AND PERSPECTIVES AUGUST 2023 by Mark Weiss
> Manufactured Housing Association for Regulatory Reform MHARR – Issues and Perspectives HUD’s Failure on Zoning Equity Hurts Manufactured Housing Industry and Consumers
> “More Department of Energy (DOE) Energy Outrages Coming for the Manufactured Home Industry and Consumers.”
No DTS-Chattel-loans Evidence
Note that MHARR and MHI leaders have each stated their opposition to DOE manufactured housing energy rule. MHI Vice Chairman William “Bill” Boor, President and CEO of Cavco Industries, made the following remarks to Congress. The following is from July 14, 2023 remarks as prepared.
Written Testimony of:
Chief Executive Officer Cavco Industries, Inc.
Manufactured Housing Institute
U.S. House of Representatives
Committee on Financial Services
Subcommittee on Housing and Insurance
“How Mandates Like ESG Distort Markets and Drive Up Costs for Insurance and Housing”
“…I am appearing before you today on behalf of the Manufactured Housing Institute (MHI) where I serve as the Vice-Chairman of the Board of Directors. Therefore, my testimony today is on behalf of the manufactured housing industry. In September 2023, I will become MHI’s Chairman.
…As context to the topic of Environmental, Social, and Governance (ESG), it is important to understand the track record of the manufactured housing industry.
…We build to a federal construction code that has been developed by and administered by HUD for 48 years…The vast majority of manufactured homes being built today exceed HUD’s standards for energy efficiency.
…The manufactured housing industry is at a critical crossroads due to regulatory barriers and [finance] market forces. Cumulative shipments from January 1 through April 30, 2023, decreased by 30 percent compared to the same time period of 2022. April 2023 shipments were down 34 percent compared to April 2022 shipments.
…In 2022, the average sale price of a new site-built single-family home without land was $413,160. By comparison, in 2022, the average price of a new manufactured home was $127,250…The average manufactured home homeowner’s median household income is approximately $35,000 per year…below …national average for a site-built homeowner…over $100,000 [annually].
…As a part of the MHCSS [Manufactured Housing Construction Safety Standards], HUD has the statutory responsibility to “facilitate the availability of affordable manufactured homes and to increase homeownership for all Americans.”
…If finalized as proposed, these [pending DOE energy standards] standards would significantly threaten the affordability of new manufactured homes… Stated otherwise, low-income consumers will be forced bear the cost of an overzealous and ill-informed approach to ESG at the expense of the American dream of homeownership, but also, perhaps counterintuitively, at the expense of helping households move into what for most would be newer and more energy-efficient housing than they have now.
The [MHIA] statute explicitly states that this [federal enhanced] preemption should be “broadly and liberally construed” to avoid disparate local requirements.”
Boor’s testimony is linked here: https://www.manufacturedhomepronews.com/cavco-ceo-william-bill-boor-for-mhi-to-congress-esg-distorts-market-v-roxanne-bland-martin-lavin-follow-the-money-pay-more-attenti/