The Masthead

The Manufactured Housing Institute (MHI) has begun to line up support for HR 3849, dubbed "Preserving Access to Manufactured Housing Act.”  The bill would amend portions of the SAFE Act and Dodd-Frank. The good news for our industry is there is bi-partisan support for the measure in the House, with over a dozen legislators signed on at this time in support. Barney Frank's office has told MHI that they will not stand in the way of the change, because they understand its importance to the Industry. These factors and others can pave the way for support in the Senate, which would be necessary for the bill to advance towards law.

So the legislative 'fix' for SAFE and Dodd-Frank is in process. One critical question is, how long will it take?

Another, what will happen if the Consumer Financial Protection Bureau (CFPB) begins to regulate as anticipated? According to testimony by Kevin Clayton, just over half of the chattel (personal property, home only) loans that have previously been made will not be made moving ahead. The reason? The costs for origination, servicing, etc. would not make loans under $30,000 profitable, so those finance companies will not make them.

Because 60% of all manufactured housing lending today is personal property (home only, chattel) lending, this could lop off 20,000 or more new home sales from HUD Code manufactured home producers and retailers. That event would obviously be bad news; a serious blow to the recovery that has been underway in the last 6 months, as manufactured home sales have steadily risen for half a year.

MHI, state, community and other industry associations have been working to line up the legislative support for HR 3849. An important step for EVERY industry professional – from owners and executives, to managers, office and rank-and-file workers – is to personally contact your U.S. House of Representatives member and also both of your U.S. Senators to ask them to support HR 3849. Phone calls, faxes, emails or letters can all help accomplish that goal.

But to help insure the passage of this bill, we need to do more!

That more is line up the other parties who are negatively impacted by Dodd-Frank and the SAFE Act if unamended. Namely, manufactured home owners! An estimated 4.4 million mobile (pre-HUD Code) and manufactured homes with values under $30,000 will be impacted. In essence, 9-10 million residents in those homes could see their ability to refinance or sell their home to others via third party financing decimated. That would mean their home values would drop, and a string of other negative consequences to them and our Industry would arguably follow.

So what more can we do?

Enlist the support of those customers and clients of our Industry who own and live in HUD Code manufactured housing and pre-HUD Code mobile homes! But how can that best be done?

There are many possibilities, but let us point the way to a method we hope you and thousands of others in our Industry will embrace.

The web addresses above point to a website that targets manufactured and mobile home owners/residents. If you go to that site, you will see articles that are geared towards those homeowners. Notice the Alert tab at the top of the site. Click on that tab, and see the article that pops up. Then, send an email to your customers with that link!

Can it really be that easy?

Why not?

We need all the help that we can get, and there is NOTHING more important in an election year than voters! With millions of mobile and manufactured home owners, this could be turned into an important issue for legislators. If it passes the House and the Senate, there would be no good reason for President Obama to oppose signing HR 3849 bill into law.

We plan to develop www.ManufacturedHomeLivingNews.com into an important multi-purpose resource for the Manufactured Housing Industry over time. But nothing will be more important than taking this first step.

Protect the interests of manufactured home owners. Protect 20,000+ jobs that could be impacted if Dodd-Frank and SAFE Acts don't get amended. Protect your own company, your job and/or that of your team mates as well as the Industry's future. Take a strong, two-fisted approach. Contact your Senators and U.S. Representative, and have all of your team members do the same to support HR 3849. Then, contact your customers, give them the website address www.ManufacturedHomeLivingNews.com tell them to click on the Alert tab, and ask them to do the same.

They should thank you for doing so. And you will be the winner when you take these two steps. Don't delay. ##

VIEW

In less than 24 hours, Mitt Romney and Rick Santorum have made campaign appearances in Rockford, IL – our family's personal back yard – ahead of the Tuesday primary. While polls show former Massachusetts Governor Romney in the lead, some also show former Pennsylvania Senator Santorum surging, which may explain the change in the Romney campaign schedule to make more appearances here in IL. There is no doubt that Romney is the front runner, and Santorum is a longer shot in the primaries. Still, having attended events for the three top Republican candidates for president – including former House Speaker Newt Gingrich in Rosemont, IL – it is worth noting that others in the media I spoke with believe that Santorum is going to make it a race of it with the Romney campaign in IL.

Congressman Don Manzullo is locked in a tight race with Adam Kinzinger, both of whom are seeking re-election in a state whose districts were re-drawn to pit one those Republicans against the other. They too will be on our local ballot.

We have word that Congressman Manzullo will be supporting HR 3849, which is the Manufactured Housing Institute (MHI) backed “Preserving Access to Manufactured Housing Act” bill that would relieve our industry of some of the burdens that currently exist under the SAFE Act and Dodd-Frank. Manzullo has a 'conservative' rating in the high 90s. Being new to this area, I can only say that local businessmen believe that Manzullo is pro-business, and at today's rally, I heard he from locals that Manzullo was strong for the 2^nd Amendment and other passionately conservative causes.

Before or after live campaign events, it is pretty common fare to see local/state political figures get introduced before the candidate and main speaker is brought to the stage. With the above in mind, it is interesting to note that Congressman Manzullo attended Rick Santorum's rally this morning in Rockford. If he attended the Mitt Romney event yesterday, I can only say that I didn't see him nor was Congressman Manzullo introduced.

Having listened to supporters of each of the top three Republican candidates, one of the things that each offered up was that they would support their party's nominee in the fall. Many felt this upcoming vote was the time to vote their values over the 'electability' question, which many attendees I spoke with felt was no question at all. The party faithful I spoke with feel that Republicans will carry the field, and that they will capture the Senate and keep the House too. Most I heard from don't buy the argument that President Obama is unbeatable. They know too many unemployed, too many harmed by federal over-reach in regulations, too many oppose Obamacare, high gas prices and the like.

Come the fall, the people will decide. But right now…

If you are living in IL or in LA or one of the state's where a primary is coming up, now is crucial time to dig past the 'anti-ads' being run by Super Pacs and look at the candidates and their issues.

Being a believer in free speech, I happen to think it is what it is when a Super PACs spew their super mud. So I also believe in taking those attack ads with more than a grain of salt, since they often distort a record in an attempt to make their favored candidate's opponent look bad.

Please take 10, look at each candidates website and vote your beliefs and conscience. The future climate for personal freedom and a pro-business climate in America are among the keys that we are voting on. # #

The Manufactured Housing Institute (MHI) new president, Richard A. "Dick" Jennison has done well on his response to USA today about tornadoes. Let me quote his letter to them, verbatim:

—

Tornadoes are devastating natural events that do not discriminate against one form of housing vs. another. As the article states, 823 people were killed nationwide from 2006 to 2011, and 160 people were killed in Joplin, Mo., last May.

No form of housing can withstand direct hits from 175 mph winds, as evidenced by the comments of the press secretary for Indiana Gov. Mitch Daniels who stated "the March 2 tornadoes were so strong, they destroyed school buildings and reduced conventional houses to dust." The article leaves readers with the impression that only those people residing in "mobile homes" are at risk during tornadoes.

What every family needs to know is that the only safe place to be during a tornado is in a proper shelter, preferably below ground. People need to go to these shelters when weather conditions favor the formation of tornadoes. Only then are they truly safe.

Richard A. Jennison,

President and CEO;

Manufactured Housing Institute;

Arlington, Va.

—

At the association level, and as individual professionals, we in the manufactured housing Industry must respond to negative items in the news. The facts are on our side, so long as we learn to articulate them well. With less than a month on the job, it is nice to see Dick Jennison respond to the USA Today's flawed piece.

All too often, we see a 'let the Other guy (or association, etc.) do that.'. Certainly, associations can and should respond to negative news.

But imagine what would happen if we all took PERSONAL responsibility to reply to every negative news item out there. With about 250,000 manufactured home business owners, managers and employees, we could make a steady, it would not take long for us to begin to positively impact the image of our Industry.

A positive image would result in more sales, more leased home sites, more factory orders, more closed loans and insurance policies. Please, make it a point to personally respond to the negatives you see in the news, and have your association do the same thing. We should do the same on legislative and regulatory issues too. ##

"Now is the winter of our discontent,

made glorious summer by this sun of York."

- William Shakespeare, in Richard III

The meaning of this phrase, the winter of our discontent, is "The time of unhappiness is past." http://www.phrases.org.uk/meanings/261500.html Shakespeare knew how to create a character that spoke to his audience, and how to fashion a phrase as well. We as professionals and as an Industry need to tap into the discontent that is all around us, for the benefit of all involved.

We need to jujutsu discontent as "Inspirational dissatisfaction."

In the Republican primaries Tuesday night, the most under-funded of the four remaining 'major' candidates has won again. Former U.S. Senator Rick Santorum has taken an economic and political reform message, wrapping it in the flag, faith and family. Still a long shot, still lacking the support of most of 'the establishment' of his party, Rick has taken a no quit approach, and kept on preaching past the spin others would place upon his campaign.

Doesn't this example give us all a lesson or two? Aren't many of you 'no quit' types too?

The fact is that each of the candidates has a lesson to share with us. Let's ignore the negatives or the baggage that each has for a few moments, and before returning to our own manufactured housing Industry's needs, focus on the strengths each candidate reveals and what insights they offer us:

• President Barack Obama – whose community organizer roots show. He is an effective speaker, knows how to use social media, knows how to use technology, orchestrate an event, use the media and to get donations small and large. Obama taps into various groups – who may have little in common with each other – to maximize his base of support. Barack looks "presidential." He knows how to use surrogates effectively, and how to 'never let a good crisis go to waste' as his former chief of staff, Rahm Emanuel, said.

• Mitt Romney – his roots as an entrepreneur and investor show. The former governor of Massachusetts, also led the Olympics. Romney clearly is the candidate with the most personal business experience and success. He too has organization, those boots on the ground. He knows how to line up his supporters and understands the importance of staying on topic, staying focused, being disciplined, not letting a failure or set back stop him. About 6 years on the campaign trail, Mitt is still the man to beat among Republicans.

• Rick Santorum – this former Senator from Pennsylvania taps into economic messages, that touch the blue collar voter. Rick taps foreign policy experience into expressed concerns with respect to Iran and beyond. He pushes back against the media – even conservative media – who he calls out for what he sees are pro-Romney or pro-Obama biases. His pro-manufacturing, tax code simplification, budget cutting ala the Contract with America during the Clinton years, ability to work across the aisle with Democrats are among his strengths. Likability, social and religious conservatism and 'you can trust me' connection with the people keep his campaign moving ahead.

• Newt Gingrich – the former Speaker of the House is the master of sound bites and bumper sticker phrases. He likes to paint pictures of bold contrasts to make a point and cut through media filters. He pushes back against the media, often calling them out as a group, while connecting with them privately and is seen as the most media accessible by reporters. His plans range from $2.50 gallon gas – which taps into the hot button of rising gas price weary voters – to tax code simplification, entitlement reform, putting a U.S. base on the moon, Newt uses the Reagan line and his experience in Congress that created the only modern American balanced budget era, along with welfare reform with an economy that roared, creating millions of jobs.

• Ron Paul – former Congressman and retired MD, this man can claim the mantle of voting against every thing he didn't believe in consistently, of being the oldest candidate who amazingly connects with young voters. He believes in a libertarian style message, of slashing debt, sticking to the letter of the U,S. Constitution, including a George Washington style foreign policy. He is apparently campaigning in part to pass the torch to his son, who is seen as a rising star in conservative Republican circles.

One can point out additional policy points listed above for each of the candidates. For examples noteworthy to manufactured housing business owners; each of the Republicans favor repealing Dodd-Frank and Obamacare, increasing domestic production of oil, the Keystone pipeline and tax code simplification, with the promise of regulatory reforms all of which should create jobs and a more trustworthy business climate.

So each candidate has some quality or experience that when pondered, can positively challenge us. Now let's set the stage by saying that all parties and people have to be able to effectively frame a message that either resonates with or gets past the modern media. You have to invest thought, time, money and energy in an intelligent and passionate fashion.

If $2.50 a gallon gas makes for a good bumper sticker slogan, then how about

quality engineered homes that are

stronger, smarter, safer, stylish and offer major savings

as a slogan that rallies potentially millions seeking affordable housing?

If candidates can dance past baggage, why can't we address or cut through the perceptions that hold us back?

If candidates can call for reforms in their party, then can we see and realize that all people and all organizations need reform and improvement? Can we see that organizations – such as manufactured housing associations – are critical, but could use our help to move into ever better and more effective directions?

I mentioned inspirational dissatisfaction at the beginning, and the winter of our discontent. Ron Thomas lead into the introduction of Joe Stegmayer at the Louisville Show hit an important point. As manufactured housing professionals, we have to think in terms of our new base line of around 50,000 shipments. We are now growing for 6 months, and thus we are advancing from that new base line.

This renewed growth is the time to martial our resources, hone and position our messages, and to prepare for a future that could be bright for those who seize the opportunities.

"The time of unhappiness is past." Let us learn from our weaknesses and missteps, turning dissatisfaction into inspiration that makes our failures stepping stones to success.

We need a plan that addresses re-marketing our homes for lenders coping with repossessions and owners seeking to exit.

We need a plan that lines up potentially 19 million owners of mobile and HUD Code manufactured homes to help us lobby legislatures and regulators for fairness in reforms needed on their and our behalf.

We need a positive message that cuts thought the noise and helps us connect with the future boom in housing which is looming beyond the end of the foreclosure debacle.

We have all that now and more in outline form, ready, today.

Scroll past the comments linked on this page, and download the free power point found at the end. Dozens of Industry pros from coast to coast have contributed insights to

an image, re-marketing plan that can turn our Industry into the David of the housing market that conquers the Goliath we've faced.

By teaming up with forward thinkers seeking a more profitable future, we too can bid goodbye to the winter of our discontent. ##

A classic part of the MD's Hippocratic Oath states, "first do no harm." This arguably should be a part of any professional's or organization's commitment to their customers and clients. We want to do good, but certainly, we also should seek to do no harm to the client or customer with our product/service.

It is said that the automotive repair business avoided federal regulations by cleaning up their own act, by establishing standards and safeguards to maximize customer service and satisfaction. I personally benefited from that fairly new professional code of conduct recently while returning from the Great Southwest Home Show in Tulsa.

My wife met me in Tulsa, where I had flown to meet her from the Manufactured Housing Institute's 2012 Legislative session in Washington DC. She had taken our Chrysler crossover to Tulsa. While in town, we changed the oil. Some of that oil got on the engine. When we were driving back, as I exited in Joplin to buy gas, we saw a white cloud of smoke pouring out from under the engine. While the car seemed to be running fine, smoke is clearly not normal! I called GEICO (yes, Warren Buffett can thank me later) for roadside assistance, and was towed to a Firestone service station, the only place open that weekend for perhaps 100 miles. We have an extended warranty, so I was mostly concerned about the travel delay and hassle factor. I explained to the service department manager that we were from out-of-state, heading home.

That combination of factors (extended warranty, out of state travelers, etc.) could have been an invitation for him to really, really tag us…

…but instead, about 90 minutes after pulling into their shop, I was told that the engine checked out just fine. “Your engine is as clean as a whistle.” Mike, the lead man, told me. “No engine codes came back from the computer. It looks like they may have gotten some oil on the engine when you got your oil and filter changed, that is what caused the smoke as it burned off.” I prepared to pay, and he said those stunning words, “no charge.” Stunned, but I insisted, saying he and his service man spent time on my vehicle and had very thoughtfully worked me in while their shop was full.

“It only took about 20-30 minutes of our time. Just get back on the road and get your family home.”  Mike said.

I was stunned, but had the presence of mind to thank him repeatedly. Needless to say, I also had the happy experience of calling their Customer Relations office when I got home, and sang that shop's – and Mike's – praises.

Those who think only of themselves ultimately bring harm to themselves and to the Industry that they are a part of professionally.

As the story above relates, the reverse is also true.

We are all in business to make money, so we all have an 'agenda' to accomplish that goal.  When that is achieved through satisfied customers, the results are priceless and the odds that the goal of sustained success is achieved.

Now, I know retailers in our Industry who have that attitude. They take a service issue, and turn it into a cause for customer satisfaction, by giving service that is rapid, professional and SATISFYING. So is it any wonder that they get referrals, sell more homes and win awards?

A client of MHProNews.com asks a challenging question: “Would you accept your own value proposition?”

Would you?

If not, let's do what wise industries and businesses do, namely, make the needed changes to make our value proposition an appealing one!

First, do no harm.  Next, seek a win-win, a mutual victory.

Mike the lead man at the Joplin, MO Firestone station told me how the automotive service industry had avoided federal regulation by making that inter-Industry commitment to consumer safeguards self regulation. “Competitors” in automotive service worked together to set standards that would protect the consumer. That in turn is resulting in more consumer confidence. Experiences like the one I related above will result in good stories being told vs. the 'bad stories' of the past where an auto service shop takes advantage of the traveler or customer.

In the long run, doing what is right is the best for any business. In a small – yet a potentially powerful – Industry such as manufactured housing, those self-imposed standards can make a world of difference to all those so involved.

Associations can and do accomplish that noble goal among their members. Still, we must be honest and admit that we have the image issues that hold us back. We are wise to address them, internally! Proactively. Peer-to-Peer.

Teaming up with competitors, to establish the confidence-building environment that allows all involved to sell more, and do better and have more satisfied customers who sing our praises.

We will return to this theme in the days ahead.

• First, do no harm.
• Would you accept your own value proposition? If not, what steps are needed to achieve that goal?
• Doing and giving our best, and Treating others like we want to be treated.

Planning and engagement are the keys.

Working together, we can improve our Industry to a degree that will allow us to tap the future housing boom that is already on the horizon. Reduced incomes, aging housing stock and a growing population are among the reasons why a housing boom is coming! Let's plan to be among those who tap that potential and ride that wave – through good service – into a brighter future. # #

post by

L. A. “Tony” Kovach, MHM

www.MHProNews.com
www.MHMarketingSalesManagement.com or www.MHMSM.com
Innovation – Information – Inspiration for Industry Professionals

Office – 815-270-0500

latonyk@gmail.com or tony@mhmsm.com
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