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Rope-a-Dope – Preserving Access to Manufactured Housing Act, Mom, Dad, & You

May 13th, 2019 No comments

 RopeADopePreservingAccessManufacturedHousingActMomDadYouMastheadLATonyKovachMHProNews

 

There may be no one analogy that is entirely precise enough to make the point that the promoters of the Preserving Access to Manufactured Housing Act purportedly hoped to accomplish with their bill. All analogies limp at some point, but those disclosures made, let’s begin with the ‘rope and dope metaphor’ from boxing.

 

Per Google and Bing:

 

rope-a-dope

/ˈrōpəˌdōp/

nounINFORMAL•US

  1. a boxing tactic of pretending to be trapped against the ropes, goading an opponent to throw tiring ineffective punches.

 

RopeADopeWikiGoogleMastheadManufacturedHousingIndustryCommentaryMHProNewsLATonyKovach

 

It is fair to say that most if not all of us have been wrong or misled about several things or people at various times in our lives. To make the point relevant in manufactured housing, let me hereby point the finger at my own chest, by hereby admitting to being misled myself.

In 2015 and before, this writer in word and deed supported and encouraged others to support the Preserving Access bill. While the bill was technically correct – a point that will be made further below – in hindsight, Preserving Access was doomed from the start.

In retrospection, the bill was arguably part of a hoax perpetrated on manufactured housing independent retailers, community owners, lenders, and others who supplied or provided professional services to the manufactured housing industry’s businesses. We’ll briefly make the case that the goal was to wear out marginal players, to cause them to sell out their business interests for less than the intrinsic value of their operation, and/or to fail entirely.

Rephrased, Preserving Access fostered consolidation and reduced values.  To see a current left-right snapshot of that issue more broadly, consider the Daily Business News on MHProNews report posted earlier today.  Senator Booker is one of several voices, on both sides of the two major party aisle, that has pointed to consolidation and monopolistic concerns.

 

Senator Cory Booker – ‘We Need a President…to Enforce Antitrust Laws,’ Digging Warren, POTUS Trump

 

In teeing up the notion that Preserving Access was a hoax, that’s not to say that it was a grand conspiracy involving scores of people.  That’s not necessary, as will likewise be revealed further into this fact-check and analysis. Literally a mere handful of professionals could have arguably pulled this ploy off.  The precise numbers and names – who knew what, and when – are for legal investigators to determine.

The Society of Professional Journalists (SPJ) Code of Ethical Conduct encourages several useful principles.

  • SPJ says that media are to be candid about errors made by journalists,
  • another is to hold the powerful to account.
  • This column aims to do both, and more.
  • Because not only where myself and thousands of others in our industry apparently fooled, the evidence and logic reveal that the rope-a-dope nature of the Preserving Access hoax has morphed and is ongoing.  Rephrased, this isn’t one and done.  It’s an ongoing ‘enterprise.’

 

SPJSocietyProfessionalJournalistsCodeofConductMastheadManufacturedHousingIndustryCommentaryMHProNews

 

We are among the billions who believe that we are given our talents and gifts from above.  There are both a healthy and unhealthy kinds of pride. Not many would say this writer lacks intelligence, so it wounds pride to to admit that I was as fooled as thousands of others were by the Preserving Access ploy. As the managing member for the parent company of this – the single largest audience in all of manufactured housing professional trade media – I’m hereby saying I’m sorry for falling into the rope-a-dope trap.

At the same time, to maintain integrity and credibility, one must lay out the facts that are known, as the realities become evident.

 

HowardWalkerJDViceChairEquityLifestylePropELS-ManufacturedHousingInstituteLogoViceChair-postedMastheadManufacturedHomeIndustryResearcMHProNews

 

That said, it is important to explain how it occurred, why the lessons from Preserving Access still matters, and the steps useful in avoiding the ongoing usefulness of the ‘Rope-a-Dope’ to a powerful few.

Rephrased, what took place with Preserving Access arguably continues, only under a different banner.  It could happen over and over, so it must be understood, exposed, and appropriate corrective measures taken to stop it from occurring again. Furthermore, those who’ve deployed this stratagem should be held to account. With that prologue, let’s look deeper.

 

Examples of Who Were Harmed by the ‘Rope-a-Dope’

In one of numerous state or national association meetings over the years arranged to promote Preserving Access, I vividly recall a man who had been successful for decades in the manufactured home land-lease community business.  He was standing in the doorway to the association conference meeting room, returning from a break between sessions.  He wasn’t a young man; rather, he was an industry ‘veteran.’

That long-successful professional had a deer-in-the-headlights look to him.

  • He indicated that he cared for treated his residents fairly and that they were happy.
  • That used to be part of the recipe for success in any business in America. Identify and serve a need, develop happy customers, and let them tell others, so your business can grow.

But that perplexed gentleman who owned that land-lease manufactured home community, in a fairly short period of time, watched as the business-model for his enterprise – along with tens of thousands of other manufactured home communities like his – was significantly transformed.  There was a loss of thousands of independent retailers.  There were fewer lending options. New regulations from the Consumer Financial Protection Bureau (CFPB) and others.  Lower net-inflation/adjusted revenues was the rule for thousands of independent retailers and communities.

There were no easy fixes in sight.

That community owner was tired.

Another professional community owner that comes to mind, whom I knew better.  He too fought the regulatory fights, attended the association meetings, made the move into selling homes in his communities. His firm got the new licenses, and did most of the things his state and the national umbrella association told him that he should do.  But he too finally wore out, and he too sold out.  He likewise grew tired of battles that for decades before previously didn’t exist.

It was just those sorts of once-successful professionals – and thousands of others like them in retail, communities, production, or you-name-it in manufactured housing – that the rope-a-dope tactic was purportedly deployed to knee cap. Consider the thousands of communities that have changed hands in recent years, as smaller operators sold out to larger ones. Wear the little man out with regulations, a lack of access to financing, or by putting out of business the retailers and factories that once supplied them.

 

Examining Derek Thompson’s Atlantic Report on ‘Mobile Home’ Retail Market as Fastest Dying Business In America

 

ICYMI, or need a reminder, the reports linked above and below in the hot-linked text-image boxes provide a sense of how many firms and how much this rope-a-dope tactic harmed independents.

 

Manufactured Home Community Case Study, UMH Properties, Lessons for Independent Community Owners, Investors

 

In pondering the scheme, in hindsight, here was the obvious goal.  The aim was arguably to slowly consolidate an increasing number of manufactured housing’s independently-owned operations into the hands of a few ‘big boy’ players — or drive the independents out-of-business altogether. Wear them out, and then sucker-punch them.  Only the knock-out blow might come in the form of a smile, friendly handshakes, and a check at a closing table.  The victims may have been paid, often thanked by their buyers, and it may not be until this moment that some who fit into this scenario will realize just how much they and others were ripped off.

That a small sense of the Rope-a-Dope in action in manufactured housing.

That was years before MHI award-winner Marty Lavin told MHProNews the following in 2018.

 

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Elements of How Its Done

That outlined, let’s step back a bit more.  Because there are subtle psychological forces at play that can harmfully be duplicated.  Thus, this must be exposed, or the dirty tricks and related errors will continue.

With politics, associations, a church or charity, if you get someone to:

  • Give time, even if it is only a little,
  • Give money, even if it isn’t much,
  • Take a stand, even if only briefly,
  • Go to a meeting, and enjoy pleasant networking or conversations with peers,

and you are subtly training them to do that again-and-again.  Why are we seeing political campaigns ask for as little as $3? It is for the reasons those bullets outlined.

Big boy companies operating in the manufactured housing segment of the affordable housing marketplace are purportedly using trade associations to do the same.  It’s tragic, but one can make the case that trade groups are working against the interests of their own dues payers.  Needless to say, if professionals understood that to be so, they would not normally do that of their own free will.

 

Congressional Efforts

That said, this writer made the correct technical arguments on issues framed by Preserving Access. I personally spoke to congressional staff and politicos from both major parties, as well as the public at large. My Congress blog post on the closely followed in Washington, D.C. The Hill website on the topic of Preserving Access was praised by Kevin Clayton, Tim Williams 21st Mortgage Corp President, CEO and then Manufactured Housing Institute Chairman, and scores of others, as the linked post below reflects.

 

https://thehill.com/blogs/congress-blog/economy-budget/248665-regulations-for-manufactured-home-loans

 

Perhaps Kevin and Tim laughed their heads off.  But time will tell who gets the last laugh.

Beyond admitting to being duped, and explaining how this ploy operated, this is an example of why on MHProNews is using the maxim, “Fool me once, shame on you. Fool me twice. Shame on me.”

It is not my intent to be fooled again.  To the extent possible, we hope to utilize MHProNews and MHLivingNews to prevent as many others as possible from being fooled, while holding those who did the hoodwinking accountable. Because now having confessed my error in falling for the rope-a-dope ploy, the focus must now pivot to holding the responsible parties to account.

If there was a scheme:

  • how did it occur and operate?
  • Who benefited from the maneuver?
  • Who was harmed?

We’ll aim at addressing each of those questions plus more herein.

 

 

How Rigging Preserving Access Was Accomplished

The system in MHVille was arguably rigged so that the Preserving Access bill would never pass at all. The truth was hiding in plain sight, and not enough of us understood that at the time. Let me stress that while some of the key players were clearly Democratic supporters, this was a bipartisan manipulation. As an independent, if I were a member of either party, I’d be incensed. Once more, let’s hold those who did the manipulating to account, rather than fall for the red-herring trick of blaming the messenger or whistleblowers.

Here are the factual elements of the rope-a-dope at work in Preserving Access.

 

  • Warren Buffett was a prominent supporter of 2008 candidate – and later the 2012 re-election campaign of – former President Barack Obama.
  • Buffett led Berkshire Hathaway has several of the largest brands in manufactured housing, including Clayton Homes, 21st Mortgage Corp, Vanderbilt Mortgage and Finance (VMF), a big stake in Wells Fargo, and ownership or stakes in several others.
  • Buffett’s brands arguably dominate the Manufactured Housing Institute (MHI) along with dozens of state associations, through dues, board positions, select allies, and other forms of influence.
  • Buffett – often though so-called “dark money” channels – has been a financial donor, has ties to, and/or is influential with organizations that opposed Preserving Access in word or deed. See the report with evidence and details, linked here.

The article linked below outlines the numerous voices in MHVille that raised concerns that point to specific players and their surrogates.

 

Joe Stegmayer, George F. Allen, Manufactured Housing Institute Slogans, Slump, Slurs, Solutions

 

On the one hand, Buffett and others supported those who passed Dodd-Frank, which had onerous regulations harmful to the interests of manufactured home retailers and consumers too. That’s is why it was technically correct to support the bill, for an example, see one of several reports we published that explained why and how consumers and independents were being harmed linked here.

But as another report at that time also reflected, zoning/placement were as big or an even bigger issue.  Failure to deal with that placement/zoning issue is another element in the current downturn, per the Manufactured Housing Association for Regulatory Reform.

 

GaryAdamekFayetteCountryHomesQuotesZoningPlacementDoddFrankPreservingAccessCFPB

 

CFPB regulations harmed the industry’s independents and consumers alike, but as the above suggests, it was one of several issues that impacted the industry. Preserving Access was fueled by MHI’s leaders in a way that it was sucking up the oxygen of the bulk of the industry’s lobbying efforts.

That said, with Barack Obama pledging a veto of any change in Dodd-Frank, the hope of passing Preserving Access law was near zero.  Who said? MHI’s own SVP of government relations.

 

JasonBoehlertPhotoManufacturedHousingInstituteLogoMHISVPGovtAffairsQuotePreservingAccess

It was the truth hiding in plain sight. 

 

The Truth Hiding…

The panel discussion I established for the Tunica Show, where the video below was captured and later produced, was part of my evolving awakening to the farce that Preserving Access was.

In citing Frank Rolfe, it should not be construed that I’m endorsing the controversial practices of he and/or his partners. There is wheat and chaff in us all, and I firmly believe in the principle of finding the wheat and separating it from the chaff. Rolfe may arguably be wrong on several things, but on Preserving Access, he was proven to be quite correct.

Thus, Rolfe’s commentary on Preserving Access in 2016 was and still is useful.

So too were the insights shared by Bob Crawford, the President of famous Dick Moore Housing, one of the oldest and highest performing retailers in all of manufactured housing history.  Dick Moore’s business has a fine A+ Better Business Bureau (BBB) rating. He has owned retail centers and land-lease manufactured home communities, which some errantly call ‘mobile home parks.’ With that introduction, here’s the video.

 

 

 

MHI’s Chairman Tim Williams, per state association sources, exercised raw power over numbers of state executives in mobilizing them to support Preserving Access. See the report, linked below. Williams pushed state executives into supporting the 21st/Clayton and Manufactured Housing Institute (MHI) promoted legislation, even though many execs had concerns about its viability.

 

 

For several years, millions of dollars were spent in the effort to supposedly get Preserving Access passed. Meanwhile, problems of local zoning, issues at HUD, or other concerns festered. As manufactured housing industry success story Gary Adamek and others put it, zoning was a far more vexing issue.  Adamek wasn’t alone.

 

 

JayHamiltonZoningPlacementAffordableHousingCrisisManufacturedHomesGaManufacturedHousingAssocPhotoMHProNews

 

Despite the assurances of Nathan Smith, MHI’s prior Chairman to Williams, that the industry – often a euphemism for MHI – would be more pro-active instead of reactive, MHI in hindsight emphasized Preserving Access so much, that other issues arguably slipped.  It was as if MHI could only chew gum but couldn’t walk or talk on other pressing or festering issues.

 

 

The point is that Buffett and a few key people had arguably rigged the system in a way Preserving Access would never pass. Yet MHI continued to pursue it.

That disconnect should have been obvious to MHI.  Indeed, as was noted above, it was MHI’s  SVP in charge of government-relations Jason Boehlert said as much in 2012. Yet for four more years, MHI pursued a hopeless bill?

That begs the question, why did MHI continue to pursue a plan that was a dead end?

Seen through the lens of rope-a-dope, a plausible picture emerges.  It was done to foster the consolidation of more businesses into fewer hands, and/or drive more competitors out of business.

That concern raises other problematic issues, such as this.  Is MHI’s leadership so corrupted that the Arlington, VA based trade group has and continues to deceived hundreds of their own members?  As the evidence began to reveal itself, what to do?

 

Mom and Dad

It’s Mother’s Day as I’m drafting this article. My mother and father were both intelligent, well educated, informed people. They survived the Nazi occupation of Hungary.  They lived in the shadow of Soviet Russia for years before that tumultuous time.  When the Soviet Union’s brutal armies were pressing into Eastern Europe near the end of World War II, my parents abandoned virtually everything, took their children, and fled West to the Allied lines. They endured harrowing experiences in that trek. They finally made it to an American controlled zone. They spent years in a Displaced Persons, or DP Camp, educating others. After years of waiting after they applied to come to America, they were sponsored into the U.S., where I became the first of my parents 7 children to be born in the USA.

Two of my siblings didn’t survive the war, what my parents went through was that bad. That speaks volumes, as does what follows.

My parents faced life and death decisions. They did what they could under difficult circumstances in an enemy occupied land. Intelligent, motivated – yet they still learned only later how official deceptions – such as how the war was going for the Nazis – were just that, lies. Propaganda. Hold that thought.

When they came to the U.S., the civil rights movement was on. My parents were known supporters of civil rights for all. Later, when pro-communist speakers came to campus, they went to publicly dispute the false communist claims.

My father was a university professor.  Years after the war, he returned to Europe and was the first Ph.D. to earn his doctoral degree in philosophy “summa cum laude” – with highest honors – in the five century history of the respected University of Cologne.  My parents sacrificed as a couple so my father could return to Europe to earn that degree, and thereby make a better life for his family, while teaching others too.

During the Nazi occupation, my father had a minor governmental position. Reflecting on WWII and the Nazi occupation, several points he and my mother shared stand out. One, while Christians, they secretly helped feed hungry Jews during the Nazi occupation, at their own peril. Two, my parents said that while they knew the population was being propagandized, it wasn’t until after the war that they realized how extensive the Nazi propaganda was. 

The point is that even highly intelligent people can be deceived, but once a deception is grasped, the moral thing to do is right the wrong as best as one’s station in life allows.  They also demonstrated that you do the best you can, based on what you know and can do.

We each learn from a variety of things. Ultimately, in the natural order – meaning apart from Divine intervention – learning comes down to just two prime sources. We learn from the experiences of others, and we learn from our own experiences.

Books, articles, teaching, videos, discussions, or other forms of learning are the related experiences of others.  The simplest child can teach us something, if we are open to it, while one learns from the most profound wisdom of the greatest minds of all time.

Looking back to 2016 and that Tunica Manufactured Housing Show panel discussion, Frank Rolfe – however controversial he may be, and however much I disagree with some of his terminology, etc. – taught me something valuable. Bob Crawford did too.

Tim Williams and MHI President Richard ‘Dick’ Jennison taught me as well, albeit in an oblique fashion.  In hindsight, Williams and Jennison revealed parts of the game in manufactured housing has been played.  At the time, it made no sense, in hindsight – with the rope-a-dope in mind – the ploy and what it was used have become quite clear.

Manipulating others becomes easier, given certain dynamics. Get a group going in a certain direction, and momentum makes it easier to keep them going that way. Busy independent business people don’t have time to dig under the surface. That’s why they pay a trade organization.

Independents trusting MHI or other weaponized trade groups has purportedly been part of the rope-a-dope scheme.  There is in hindsight, as Mark Weiss, JD, President and CEO of the Manufactured Housing Association for Regulatory Reform, an ‘Illusion of Motion.’ That illusion of activity – that MHI claims is to improve the industry – is enough to fool busy professionals that trusted the Arlington, VA based MHI trade group, while their members are focused on their business.

 

 

“The Illusion of Motion Versus Real-World Challenges”

 

Not only for this writer, but for others in manufactured housing, the evidence of in hindsight of deception by leaders connected to MHI began to crop up. One big clue was an email from MHI to its own members, shown below in its entirety. A source in MHI’s organization told me that the “Housing Alert” – shown below under fair use guidelines – were only giving part of the story about a Senate hearing on Preserving Access between Senator Joe Donnelly and the CFPB Director Richard Cordray. Rephrased, that source claimed MHI was at best giving their members a half-truth.  Going to the CSPAN video, that MHI source proved correct.

 

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We produced the following video – shown a few paragraphs below – during that time-frame.  But frankly, the full meaning of what occurred only become clear in the rear view mirror, years after these events referenced by MHI’s message.

Let’s note, Senator Donnelly or Director Cordray may have been oblivious to what was occurring. MHI no doubt provided Donnelly with certain questions, they indicated as much at the time. Nevertheless, Donnelly or Cordray could well have been obvious to the fact that each were playing a part in a costly and harmful drama.  If Donnelly and Cordray were figures in a staged play, they should desire a federal investigation into these events as much as tens of thousands of industry professionals should want it.

MHI’s Senior Vice President Lesli Gooch, Ph.D. sent that message, as the email above indicates.  It was obviously with MHI President Richard ‘Dick’ Jennison’s okay. As such MHI “Housing Alerts” were sent to their own members.  Because affiliated state associations would resend MHI messages, this kind of ‘alert’ was distributed to thousands of others in manufactured housing.  The quotes used by MHI were accurate, but they were a half-truth.  It was arguably meant to deceive, as their own headline indicates:

On Capitol HillMHI Advances Manufactured Housing Finance Reform.”

There was no advance of Preserving Access. Barring Barack Obama and the U.S. Senate acting against their stated positions, no advance was possible.  The bill never, ever passed into law.  How could it?

MHI’s omissions changed the entire tenor of the Cordray-Donnelly Senate hearing discussion. That’s arguably why that MHI source sent us the tip at that time; that insider source wanted us to know that MHI was telling a half-truth that had so much spin, that it was arguably a lie.

Once more, at that moment in time, I still didn’t get it that Preserving Access was a rope-a-dope head fake. But I knew that morally, it was wrong to deceive their own members. The why behind the deception took time to uncover.

So, about 3 years ago – based on what looked like clear evidence of deception of their own members – this writer publicly called for the resignation or termination of Richard ‘Dick’ Jennison and Lesli Gooch, Ph.D.  Not knowing more at the point in time, there was nothing more that could be done.

 

RichardDickJennisonLesliGoochManufacturedHousingInstittueMHI-postedMHProNews-

This report was in 2016, and the evidence kept mounting.

http://MHProNews.com/industry-news/hot/why-richard-dick-jennison-and-lesli-gooch-at-mhi-should-resign-or-go

 

That said, their deceptions made me look deeper, and ask, why wasn’t MHI using the best arguments with the CFPB and Richard Cordray?

Still supporting the logic of the bill, while opposing the tactics being used, our operation paid for the following production.

 

 

 

As this writer acknowledged in a Clayton Homes related report, linked here, our videographer wasn’t the greatest. That’s my bad, for not doing a better review of that person’s claimed credentials. That said, the videos he produced are useful. Perhaps videos and articles we produced at the time are more useful today in hindsight, then they were at that time.

Our graphics and videos have improved since.  But at a minimum, what we produced should have inspired MHI to do something similar and better.  They had the budget and they had the responsibility for advancing their own agenda.

With those disclaimers and logical points, we made this summary of statements made by CFPB Director Cordray to Senator Donnelley (D-IN).  Those pull quotes were and are revealing.  Because not only were Gooch and Jennison failing to be honest about the breadth of discussion at that Senate hearing, but MHI was also failing to use their best arguments.  Why didn’t they take Cordray’s own logic, and show him why Preserving Access could and should be done by Cordray by agreement?  After all, Cordray had that authority to change CFPB regulations himself.

 

RichardCordrayCFPB-ManufacturedHousingRegulationsCSPANstill-InsideMHvideoPostedMHProNews-com-

A prosecutor or plaintiff’s attorney builds a case with one fact laid next to another. That’s what this article is doing, laying facts out, and showing how they relate to this issue.

 

Rephrased, if MHI’s leadership were serious about getting their bill passed – or the actual intent of the measure was to get Cordray to relent and place the same regulations  into effect – then why didn’t they do some similar or better efforts to what we provided our readers and viewers?

Or even easier for them, why didn’t MHI actively support and promote our efforts to help them pass their measure – given that we were MHI members, and that we were promoting what they say they wanted?

Bear in mind, that MHI’s then chairman praised this writer, and our publications.  He did so precisely in the context of thanking us for our support of Preserving Access. The disconnects with MHI’s actions where all over, but it they only became clear in hindsight.

 

TimWilliamsToRephraseMHITonyBothCorrectThereisNoDaylight21stMortgageCorpMHIChairmmanufacturedHousingProNews

 

Do you see how the logic and evidence that MHI leaders were shadow boxing, playing rope-a-dope, mounts in the enhanced clarity of the rear-view mirror?

 

 

What Then MHI Chairman Tim Williams Did

As the linked report documents, MHProNews and I personally had called Jennison and Gooch out for their deception publicly. Tim Williams response?  Williams backed them after their apparent deception was revealed.

At a subsequent MHI meeting, Williams held a vote of confidence, which given ‘how gold rules‘ of course passed, in favor of Jennison.

These events took place in the view of thousands of readers, and dozens of MHI member event attendees.  Bear in mind that Williams, Jennison, and others had long praised our work.  Of course, for a time, we were useful to them.  Ouch, if so, but there it is. However one looks at it, what looks bad is that the perpetrators of these deeds were arguably part of a purported fraud.

Yes, not just deception, but fraud is a plausible argument.

FraudLegalDefinitionManufacturedHousingIndustryDailyBusinessNewsMHProNews

Yes, this article is laying out evidence that supports a possible case for fraud committed by specific Berkshire Hathaway and MHI leaders.

 

Given that MHI’s efforts were ‘ongoing,’ used ‘the wires’ – i.e.: the internet, and the U.S. mails too, that can all be elements of RICO.  “Racketeer Influenced and Corrupt Organizations Act (RICO) is a U.S. federal statute which provides criminal penalties and civil action for any act performed as a part of an ongoing criminal organization,” per US Legal.

 

IllegalLegaRICOWireMailFraudManufacturedHousingIndustryMHProNews

Yes, this article is laying out evidence that supports a possible case for RICO by specific Berkshire Hathaway and MHI leaders.

 

 

Once more, at that time, RICO or fraud were not on my mind.  But in hindsight, there is an argument to be made that those who’ve participated in this alleged fraud could be subject to federal, state, and civil actions.

That noted, let’s flash back again.

YouMHProNewsSeemToHaveConceptualIQThatIsMoreImportantThanSpellingAbilityQuoteMastheadMHProNews

Quote from an MHI member, business executive. We do have our typos…

The Williams ‘vote of confidence’ and related fueled my interest in peeling back the layers of the onion.

I won’t go into much more, other than to say that there were numerous voices inside and outside of MHI that helped me arrive at the point that I am today.  At the time, I was so behind Preserving Access, that I pressed MHARR to support the bill.  They calmly told me that if anyone called, they said they were for the goal of the measure, meaning more access to more lending.  But MHARR’s leaders apparently had a better sense that the bill was going nowhere, no matter how many meetings MHI held, or how many emails they sent out to the industry.

That noted, let’s pivot to a related point to the issue of consolidation.

For example, a source provided MHProNews with documents in 2017 that reflected an apparent violation of antitrust law, aimed at eliminating independent retailers and others they did business with.  Put differently, this was a more active move vs. the more passive ‘rope-a-dope’ ply.  The evidence provided us involved letters from 21st Mortgage’s Tim Williams.  That caused us to research what Kevin Clayton at Clayton Homes, and Warren Buffett at Berkshire Hathaway said during that same timeframe.  The documents, direct quotes, and video linked below are perhaps the definitive report on that topic to date.

 

 

We’ve asked Clayton, 21st, and MHI leaders to respond to these concerns several times. Silence.  They’ve not confirmed or denied the allegations of market rigging done in a fashion that is arguably a violation of antitrust laws.  If they rigged the market in bold ways, why not in more subtle ones?

 

What Does This Mean For Investors and Manufactured Housing Professionals?

What Does This Evidence Mean for Affordable Housing Advocates?

First, this pattern of behavior took place over a period of years.

Second, while experts on the topic are useful, the elements of the case are laid out from this report.

Third, while we believe the evidence and its elements are compelling, the accused are deemed innocent until proven guilty in a court of law, or by a plea/settlement.  These are allegations at this point, although they are arguably logical points with solid evidence and patterns of activity provided herein.

Fourth, this arguably impacts virtually every independent business, not to mention, home owners, workers, investors, home seekers, and tax payers.  The economic harm is in the billions annually.

Fifth, initially, some of these players – for example, Richard Jennison or Lesli Gooch – could well have been mere pawns initially. They may at first only have been following orders. But as certainly, as we published various fact-checks, analysis, and research, it becomes harder for them to argue that they lacked knowledge. That’s problematic for them, if legal action occurs, unless they use their insights to flip against those who pulled their strings and ordered various actions.  It should be stressed that sources at MHI have already provided MHProNews with useful information that helped unpeel layers of the onion.

Sixth, several state association executives arguably have a similar problem at Jennison and Gooch have.  Some of those executives publicly praised our work, and they praised that letter to the Hill that this author published. Once more, similar to Jennison, some state executives may have begun as mere pawns. But with MHI staff or state association staff, there is evidence that they are routine readers.  Their own emails to others will reflect their knowledge.  Failure to report a crime can lead to a charge of being an accomplice after the fact.  It should be noted that state execs are among our sources for tips.  When the time comes, we can testify on behalf of those that did what they could to battle the corruption, through their news tips.

 

SubmitNewsTipsManufacturedHomeProNewsMHProNewsLogoMastheadMHProNews

Submit confidential or on-the-record news tips, or comments at this linked email mailto:iReportMHNewsTips@mhmsm.com.  Put “MHProNews Comments” or “News Tip” in the subject line.

 

Seventh, while legislators often support bills and make speeches in favor of legislation that they know will go nowhere, that is arguably different than being part of a fraudulent scheme.  For 2020 and other motivations, legislators and other advocates may be motivated to do what is right with respect to the Rope-a-Dope and related schemes to consolidate manufactured housing into ever fewer hands.

Eighth, as some linked articles reveal, there may likewise be connections between non-profits that benefited from Warren Buffett’s largess – directly or obliquely – that these same numbered points apply to from a legal perspective. One may begin innocently as a mere tool or pawn in a fraud.  But as realization hits, there are legal and more reasons for them to step forward.

Ninth, advocates and unelected public officials also have a role in acting as they digest this.

Certainly, once an allegation is made, evidence is presented, and reason is applied, a reader can and should double- check the claims.  We don’t ask that any of this be taken on blind faith. I’ve routinely invited key people in the Omaha-Knoxville-Arlington axis to debunk or explain away previous reports, some of which are linked in this one.  In the past two years, they’ve largely been mute directly.  Indirectly, they’ve arguably taken several steps, including hiring an outside attorney for MHI to threaten this writer and our publication. If we were mistaken, why didn’t they simply point out our fact error or any misstep in reasoning?  Instead, MHI used threats and other tactics.

 

Lanham Act, Monopolistic Housing Institute, err, Manufactured Housing Institute, Legal Bullies, and You

 

This writer has already taken certain steps with state and federal officials, and will plan to take others. So while this is a mea culpa, it is more.

Tenth, one or more individuals in this circle have purportedly misused the mails in an effort to threaten and/or embarrass this writer via a form of extortion. They perhaps didn’t realize  that every such step only confirmed that we were on the right track. As our team or myself have said before, sure, there are some things that would be embarrassing for me, but it could be explained in 60 seconds.  There’s a keen difference between an embarrassing moment, vs. fraudulent or criminal activity.

Why would someone engage in such a fraud and use the ‘rope-a-dope?’

Let’s let Warren Buffett help us explain the answer to that question.

 

How Warren Buffett Sheds Light On This Issue

Hindsight isn’t always 20/20. But Buffett, whom I disagree with numerous points of his purported business or other (lack of) ethical practices, has nevertheless said some things that were useful to me in understanding what occurred and why.

Paraphrasing the Oracle of Omaha:

 

  • The rear-view mirror is clearer than the windshield.
  • The lesson of history is that most don’t learn the lesson of history.
  • If you take a long view of an investment in an industry, you can do more than those who only take the short view.
  • Buffett stresses that he only invested in industries that make good sense. That was confirmation of the value proposition of manufactured housing.
  • Reputation is important.

 

But oddly, Clayton and their related lenders have behaved in ways that arguably stoked problematic reputational issues. ICYMI, or to see the connections, please check out the related report, linked below.

 

Clayton Homes, 21st Mortgage Corp, Vanderbilt Mortgage and Finance – Investor Lessons Learned

 

In hindsight, looking at the evidence, the case can be made that Buffett had the goal of monopolizing a big part of the industry.

Buffett did so by manipulation of access to financing and capital. This is a realm where the advocacy of the Manufactured Housing Association for Regulatory Reform (MHARR) was useful to me and others in the industry.  The Duty to Serve (DTS) Manufactured Housing by the Government Sponsored Enterprises (GSEs) of Fannie Mae and Freddie Mac became law in the Housing and Economic Recovery Act of 2008 (HERA), a measure MHARR successfully backed.

But a decade later it is still not being fully or properly implemented. What can that lack of implementation be traced back to? MHARR has argued that fingers point to GSE foot dragging, Berkshire Hathaway lender’s that de facto foiled its earlier implementation, and MHI working to re-direct DTS to an untested and more expensive so-called ‘new class of homes’ built under the HUD Code.

 

Buffett and his fellows in MHVille, in hindsight, has been both revealing and concealing.

What’s arguably occurred is often done in plain sight.  If someone had checked the records as we have, they could have come to the same or similar conclusions. Buffett’s merry band of leaders in MHVille have purportedly played rope-a-dope for years. Thus, the ongoing nature of this matter, which is why RICO – IMHO – can and should be applied.

Cutting off lending to thousands of retailers who didn’t buy Clayton products harmed many, causing numbers to fail. That in turn tipped some factories out of business or caused them to sell out later at a discount.  It also harmed independently owned manufactured home communities, that for decades counted on retailers to fill their vacant sites.  So much changed after the events in this linked report.

More recently, Buffett’s money apparently funded the underlying research used by Oliver’s video, linked here.

These are arguably slow-motion methods of getting ‘undervalued acquisitions,’ and do so in a manner that could easily elude federal antitrust regulators and/or their victims.

The linked reports are crucial for grasping the evidence of how this purported plot has been carried out. Let me stress that initially, only a few would have had to know. But as our reporting has unpeeled the layers, plausible deniability has slowly escaped their various tools and pawns, as those individuals have gained understanding of the elements of the ploy.

Ronald Reagan said his 80 percent friends are not 20 percent enemies. That’s an important principle in manufactured housing for those NOT in on the rope-a-dope.  There have been useful tips from past and present MHI staff and members, MHARR leaders and their members, independents, or others who have since broken with MHI as the rope-a-dope became clearer to them.  I’d like to think we’ve been helping each other against the threat of still more costly market manipulation.

HUD Secretary Ben Carson has arguably done the industry a big favor in his recent statement. See that, linked below. Ask yourself, why doesn’t MHI have the entire speech on their website? Once more, just before publishing this, we’ve verified that this isn’t on their website.  Are they that lazy and incompetent? I’d say, no.  So, is there something else – like the illusion of motion and the rope-a-dope – at work at MHI?

 

 

Dr. Ben Carson Secretary of Housing and Urban Development Manufactured Housing Conference Remarks New Orleans, Louisiana, Hyatt Regency Hotel, May 7, 2019

 

Imagine a candidate pondering replacing MHI president Dick Jennison, other than say Lesli Gooch.  Imagine that a candidate uncovers a report like this. Who would want to go work for an organization that one of their own prior presidents effectively dissed as he exited?  Who would want to fill the role of an allegedly corrupt organization?

  • There is evidence that supports the reality that MHI has been shadow boxing as well playing rope-a-dope.
  • Buffett has demonstrably been funding opposition to manufactured housing interests, including Preserving Access.
  • The industry’s members were getting purported propaganda, spin, and weaponized half-truths directly from MHI and indirectly from state associations.
  • More recently, weaponized information has come from a new publication launched that largely is a purported MHI propaganda tool, aptly named MHInsider. Berkshire brands and others who are benefiting from consolidation are among their sponsors. MHInsider isn’t alone, consider the head fakes from purported pawn and rewarded surrogate, George F. Allen. For still more, see the below.

 

B2B Statistics, Trends 2019 – April 2019 Snapshot of Manufactured Home Professional Readers

 

ManufacturedHomeMHShipments1990-2017MastheadManufacturedHousingMHProNews600

20 years ago, manufactured homes outsold RVs by about 3 to 2. Today, RVs outsell manufactured homes by some 5 to 1. Manufactured homes are normally purchased for full time living, many RVs are for recreational or part time living. Many RVs – which are towable as well as motorized – can be higher than a manufactured home. The cost per square foot for a manufactured home is routinely lower.

 

 

How Manufactured Housing Has Been Manipulated and Stunted During an Affordable Housing Crisis

There are at least 4 principles that have been at work.

  • The power to tax is the power to undermine value and potentially to destroy a business or industry.
  • The power to regulate is the power to destroy.
  • The power to manipulate, limit, or cut off capital and financing is the power to undermine or destroy a business’ value.
  • Last for now, but not least. The ability to artificially generate opposition in media, politically, and otherwise can limit, undermine, and destroy a business’ value or potential.

Buffett’s donations can be traced to a nonprofit called MHAction. MHAction was part of a group of three nonprofits that did a white paper on problematic business practices by manufactured housing brands that provided key material in Last Week Tonight with John Oliver’s viral and errantly named “Mobile Homes” video. That video attacks Buffett’s own companies.

But so too did the Center for Integrity, whose journalist co-authored the first Seattle Times attack on Clayton, their lenders, and de facto the Preserving Access bill. Buffett’s money found its way to that nonprofit too. See the third-party research, linked here or above.

So, there is an ongoing pattern of activity. This is why we believe that their is a case for RICO, fraud, as well as antitrust.

 

 

Summary

We are left with a picture of Buffett and his key henchmen in MHVille apparently playing rope-a-dope with the industry. Initially, only a few people had to be involved in the sense of being ‘in the know.’ Later, plausible deniability arguably faded for certain people, say MHI key staff, as our reports on the issues became more focused.

There’s more evidence to unpack in related reports linked from this one. But the essential points are undisputed at this point by Clayton, 21st, VMF, MHI, and that MHI outside attorney – all of whom have been directly asked and asked again to respond to the evidence, concerns, and allegations.  They have the right to remain silent.

Perhaps they have no good response to the evidence?

Freedom isn’t free. My parents taught me that me that in word and deed. You resist and fight back any way you can, based upon your circumstances in life.

Economic freedom is as important as free speech, free assembly, the right to vote, and so on.

Antitrust, RICO, and other federal or state corrupt practices investigations must be made and done as publicly as possible so as to deter others from such ploys.

Millions of lives have arguably been impacted, using Secretary Carson’s logic. Tens to hundreds of billions of dollars a year are arguably being lost in our industry, with a ripple effect in the country that makes the total economic harm far worse.

Preserving Access to Manufactured Housing Act  – under this premise – was a head fake, and the record is now being set straight. My apologies for not seeing it earlier. Now, help us help you be sharing this with others, and then acting accordingly.

That’s a lot to digest. But by laying it out, step-by-step, dotting i’s and crossing t’s, and linking the evidence, it provides those looking in and those within the industry to follow the evidence.  That is the start of fixing what has artificially suppressed manufactured housing. See the related reports below.  “We Provide, You Decide.” © ## (News, commentary, fact-checks, and analysis.)

(See Related Reports, further below. Text/image boxes often are hot-linked to other reports that can be access by clicking on them. Third-party images and content are provided under fair use guidelines.)

LATonyKovachQuoteManufacturedHousingIndustryWontReachPotentialAddresscoreIssuesArtificallyholdingitback466By L.A. “Tony” Kovach – for MHProNews.com.

Tony is the multiple award-winning managing member of LifeStyle Factory Homes, LLC, the parent company to MHProNews, and MHLivingNews.com.

Office 863-213-4090 |Connect on LinkedIn:
http://www.linkedin.com/in/latonykovach

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Related References:

The text/image boxes below are linked to other reports, which an be accessed by clicking on them.

Ross Kinzler Confirms Allegations, MHEC Peer Claims “Association Malpractice;” Member Backstab, MHI Failure Concerns

“Lead, Follow … Or Get Out of The Way”

HUD Code Manufactured Home Production Decline Continues, May Updates

 

HUD Study, Analysis of Zoning Discrimination Against Manufactured Housing Sought

 

MHARR Releases Study Recommending Independent Collective Representation for Post-Production Sector

Independent National Manufactured Housing Post-Production Association Takes Major Step

 

 

 

 

 

 

 

Defining, Refining Manufactured Homes and Systems-Built Housing

August 28th, 2016 No comments

We either define ourselves, or others will define us, often to our industry’s and homeowners’ detriment.

People are entitled to their own opinion, but they’re not entitled to their own facts.

The optimist doesn’t deny that rain is falling; rather, the optimist recognizes reality, grabs an umbrella and continues forward towards the goal. 

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The optimist is navigating reality and is solution oriented, while the pessimist is oh, woe is me, I’m a victim, and the sky is falling oriented.

These are just some of the pithy pensées (French for, “thoughts”), we’ve shared over the years.

Before we push onto our silver-lining topic for today, some programming notes for our upcoming Superior September 2016 issue of MHProNews featured articles and reports.

PeopleAreEntitledToOwnOpinionButNotToTheirOwnFacts-MastheadBlogLATonyKovach-postedDailyBusinessNews-

A variation on the saying popularized by Daniel Patrick Moynihan — “You are entitled to your opinion. But you are not entitled to your own facts.”

Superior September…

We had not one, not two, but three different Cup of Coffee with… interviews lined up for September.  It now looks like one will slide into October, another looks like it will be ready for September, but won’t go live on the home page until the week of the Sept 5th.

But in addition to all of the good, meaty things you routinely see featured on MHProNews daily, weekly and monthly, there will be also be reports you won’t find anywhere else in MHVille. So stay tuned, as the first-of-the month is rapidly approaching. Now on to today’s topic.

Does-Truth-Matter-To-the-extent-we-allign-ourselves-with-the-truth, we thrive-to-the-extend-we-deny-it-we-suffer-dr-keith-ablow-photo-fox-poster-credit-MHProNews-com-

“The Voice of Manufactured Housing” is…

…there have been a number of kind MHPros over the years who at meetings, in private, in public and in published comments have called MHProNews.com and MHLivingNews.com “The Voice of Manufactured Housing.”

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See the article this quote is found in, and you’ll see why we need more MHPros, like Ed, who are ready, willing and able to speak out on the issues and topics of the day.

Thanks, but that voice works only because the real voice for the industry are pros look you – any and all of usWe collectively are the Industry’s Voice – those who strive daily to Do it Right, Raise the Bar, and Serve the Public and our fellow professionals well.

With that lofty goal in mind, from day one when our first online edition launched in mid-October, 2009 (at the depth of the so-called Great Recession), we’ve always featured multiple pros every month and every issue.

WeCollectivelyAreTheIndustrysVoiceStriveDailyDoItRightRaiseTheBarServePublicProfessionalsWell-MastheadBlogLATonyKovachMHProNews

We have always accepted thoughtful commentary from pros of any and all political, economic, faiths, genders, ethnic or other groups. This has never been “all about me” site; rather – in word and deed – it’s always been about inspiring and acting in concert with others.

It’s all about Our Industry, YOUR career, YOUR organization and the tremendous opportunities and potential for ever greater and more profitable success.

CollageofVideosInterview-MHProNews-LATonyKovach

Mostly stills from videos in our industry-leading Inside MH series, published on MHProNews and/or MHLivingNews, depending on the topic.

Industry Voices

For several years, we have sought comments from industry pros on specific as well as general issues.

But more recently, we’ve increased that tempo, asking your peers for comments on issues, which sometimes are off the record, but are often on the record.

ConnectedCommunityOwnerShouldFaceCriminalChargesDailyBusinessNews-MHProNews-

There are powerful, timely quotes from Industry Pros in the article above. We as an industry need to be willing to step up like these pros did, call out bad actors. We either define ourselves, or others will define us, often to our industry’s and our homeowners’ detriment. ICYMI – click the image to see the article.

These twin platforms are YOUR Voice to the industry and to the public at large. That voice must be projected first to the industry, and then to the nation and beyond.

In a perfect world, as independent trade media, publishers who arenn’t captive to

  • any one company,
  • or any one association,
  • nor any one professional,

we are uniquely able to help the industry define and refine itself.

ObviousGettingAwayWithItPositionInCity-YouMeNotGetAwayWithIt-RichardNodel-NodelParks-IndustryVoicesManufacturedHomeIndustryNews-MHProNews

But this can only be done properly by having

  • multiple industry pros.
  • multiple companies,
  • multiple associations,

and our own writers and independent commentary, acting to bring a variety of voices together.

NotAllCommunities5starLocations-NeedAffordableHousingKarlRaddeSoutherComfortHomes

Click this or the other image above with Richard Nodel to see the full commentary by each pro, found on Industry Voices.

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Image credits, Facebook.

Manufactured, Modular, PreFab…The Factory-Built Housing Industry…

Years ago, we argued that one side of factory-built housing ought not put-down other sides of factory-crafted home building.  I understand why modular-only builders are tempted to put down HUD Code homes, but it’s a strategic mistake and tactical mistake to do so.

We won’t prove that case today, but will once more observe that Mercedes-Benz doesn’t toss rocks at Chevy’s Cruze.

Entry level (think VOG models of HUD Code MH), mid-level and residential style HUD Code homes and MODs are needed in wide parts of the U.S. The need today is in the millions of new housing units. That spells huge opportunities.

The way the HUD code for manufactured homes is written, you can’t do “HUDs” in urban towers, but you can do modular and prefab high-rises. 

The point is, there are unique needs for each kind of factory-building.  We should hang together, and the more we do, the faster we will rise together.

Defining and Refining Factory-Built Homes in the face of Negative Press and Regulatory Opposition

The news stories and commenatary we’ve published by others, like those linked on this page, give you lived examples of how we as an industry can forge intelligent reports that respond to bad or inaccurate local, regional or national news.

To best do that, we will continue to need the inputs of Industry Voices like those of your peers, and/or we need your voice.

If you see negative or inaccurate local news in the mainstream media, please bring it to our attention, and then share whenever possible insights and on-the record comments that you can, help us help you advance the MH Industry.

iReportMHNewsTips@mhmsm.com

Please put News Tip in the subject line.

Naturally, none of what we do happens absent sponsors. If you are one of the thousands who logon here every daily, thank you, but also remember to show your appreciation to our sponsors and experts.

Indeed, many of you already have, as our sponsors have often seen nice spikes in business activity, especially when they are actively engaged in all that we do on MHProNews and MHLivingNews.com.

MHProNewsMHLivingNewsGoodCommunicationsResources-TimWiliams21stMortgage-MastheadBlogMHProNews-

All for….

…One, and One for All.  That was the slogan of the Musketeers, and it’s one that I’ve long found inspiring.

Some have and will continue to take the lead in participating, in commentary, in reading or supporting one or both of our trade platforms. More are invited. Not only is “the more, the merrier,” but more support and input will speed our industry’s advancement and acceptance in the broader local, regional and national communities.

No one company, no association is able to do what we’re doing as trade media.  Why?

Because if say GM (or an automotive trade association) owned Car and Driver outright, whatever Car and Driver reported would then be seen as spin or propaganda.

So what Tim Williams stated was 100% right when he said that what we do on MHProNews and MHLivingNews is useful and necessary communications tool, for the advancement of the Manufactured Housing Industry.

When you look carefully at recent reports in the Daily Business News – check out this week’s Sunday Recap here – you’ll see what we mean.

15MinutesDailyMHProNewMHLivingNews-KnowledgeSharedKnowledgeMultiplied2

Thousands of pros like you logon daily, to feed their minds, inspire, learn and then share in ways that advance their careers, location and thus the industry.

Knowledge Shared…

If you aren’t already one of the thousands who are getting out emailed news updates, sign up in seconds free at this link here.  They go out typically twice weekly, and look like what you see at this link here.

What you’ll see anew in Superior September 2016 are vivid examples of why manufactured housing is essential to our nation. In spite of some 6 years of steady growth, there are still threats to our great industry. There are forces that oppose MH from reaching its potential.

That’s reflected routinely when government – local, state or federal – tips the scales against us; thus we must learn to ever-better express why we are the best answer for the growing affordable housing crisis.

In some urban markets, that solution will be often modular or prefab rather than HUD Code manufactured homes. But as an industry, we need those varied factory-built housing voices to learn how to work ever better, together.

CFED and Non-Profits

Let me say something politically incorrect to some, but that’s important for us all to get our arms around.

While MHProNews and MHLivingNews have at times ‘taken on’ the misguided attacks by operations like CFED, we must also learn how to work with CFED and those non-profit groups. Frankly, Florida’s fine association is a good example of how that can be done successfully, but there are others.

Those non-profits, think-tanks and public policy advocacy groups wield a lot of influence. So when they are wrong, we need to help guide them to the truth. When they attack our industry publicly, we should defend our industry publicly, using jujitsu.

But when they’re right, we need to work hand-in-hand to advance the MH industry as the solution to affordable quality living for millions who have poor or no good housing options that lead to home ownership.

 

The Truth Well Told is Powerful

When we showcase the truth, when the truth is well told, we are advancing our cause.

At times, that means calling out bad actors in our industry’s own ranks.  Let me point you to the story, linked above, which those pros that spoke out about – on the record – ought to get a medal for doing so.

When the industry raises up success stories, but also call out bad actors – that’s when we as an industry gain the credibility we need to advance our cause with public officials and the public at large.

That said…

Thanks for years of support, encroachment, tips and yes, at times some tough-talk, but always with the aim for the advancement of our great industry.

This industry is the future of housing in America, and the world. Working Together, We Advance to the Day when all forms of factory home-building are respected and accepted.

That’s the mission. That’s the objective we believe in and have worked for from day one. Join us, and share this mission with others. Tallyho! ##

LATonyKovach-Louisville-2015-mhpronews-com-275x156-1

L. A. “Tony’ Kovach shown here in an MH Industry Pros educational session.

By L. A. “Tony” Kovach.

Crisis

September 26th, 2015 No comments

We’re in a nation and world living in critical times. Ensconced in the cocoon of our big screens, tablets, smart watches, phones and social distractions, images of millions of refugees from the Middle East may seem as surreal as a Dali painting.

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Salvador Dali used many styles of art over the years, among them a surrealistic expression that was designed to make people think. Image Credit = Asia Forest Gallery.

The moorings of our nation’s constitution were slipped years ago. We awakened to a president who proclaims he’ll act with a pen and phone. The Supreme Court claims authority to redefine marriage against the will of the majority, thousands of years of history and the normal tenants of judicial interpretation.

The House Speaker has stepped down the day after a historical address of Congress by Pope Francis. Having blown past 18 trillion dollars, the House and Senate faces a new debt ceiling. The budget – or more likely, a CR – must still be passed. The southern border remains a porous political football. And Clayton Homes builds a 3D printed solar concept house in conjunction with ORNL.

For good and ill, there is simply too much for millions of people to track and follow, much less digest and truly understand.

The Renter’s Nation is not the American Dream of yore. No wonder people are getting stoned on pot 20x stronger than when Jeb Bush smoked it 40 years ago.

Heroin is killing hundreds in cities and small towns across the nation. Reports reveal that Mexican cartel coyotes are leading illegals across the border, using the young and adults as mules to carry drugs to America’s streets.  That leads to more crime. Ann Coulter shrilled her message as she shills her book ¡Adios, America!

The Donald Trumpets the immigration issue too.  Dr. Ben Carson takes the NBC bait and opines on not voting for a hypothetical Muslim for president.  Bernie Sanders and as yet unannounced VP Joe Biden virtually equal the once ‘invincible’ Hillary Clinton in polling. A billionaire Democratic donor joins the growing chorus on the political left calling for more DNC debates, as H-> is apparently caught in the latest misstatement about those private-and-public emails on a personal, unsecured server.

Of course Black Lives Matter, but why did Democratic presidential hopeful Martin O’Malley feel the need to apologize that all lives matter, regardless of race, color or creed?  Cops are executed on city streets, as crime and murders are rising in major metros.

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As unrest spreads in the cities, will more start moving to the Exurbs?  Matthew Silver’s report on a study Rural Living – Returning to Exurban America we published already says as much.

National and Global Turmoil

Russia has jet fighters now in Syria, armed with air-to-air missiles. Vladimir Putin says they will  prop-up the Assad regime, which President Barak Obama once vowed must end. The Russians have buzzed our borders with long-range bombers for months. ChiComs recently sent warships near Alaska, they too have buzzed our warplanes, as they build a military base in islands in the South China Seas shipping lanes, sending fear across the Western Pacific rim.  While their regime is promising to reduce the dirtiest global emissions on the planet, via surrogates they hack our computers. The Chinese are stealing our technology and jobs, while manipulating their currency to prop up their sliding stock markets.

Few even mention that Putin’s Russia stole Crimea from the Ukraine, while the civil war they’ve fostered aims to reclaim that entire land. ISIS made even Turkey so nervous, they’re now toe-in-the-water on the conflicts that are deluging Europe with the most refugees since WWII. Russia and Iran are ever more openly cooperating with each other. The NATO alliance is being tested as never before.

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Yet, the pen and phone wielding POTUS will reward Tehran with nearly $150 billion in a deal that makes no sense to some 2/3rds of all Americans, an agreement many Gulf States and Israel strongly or quietly oppose. We spent trillions in war in the Middle East, Saudi Arabia rewards us by depressing oil prices to harm U.S. oil producers.  No wonder most Americans are frustrated with DC politics and American policies, foreign and domestic.  

No wonder underdogs and outsiders in both major parties are getting such a good look vis-à-vis the insiders and establishment candidates.

We need a combination of Solomon and Braveheart for our next president. We need solution oriented citizen-officials in Congress, and SCOTUS justices that want to enforce the law, not create or protect laws that violate the separation of powers and the original federal/state balance of authority.

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See the latest in this ongoing story about DOJ and MH, linked here. While this case is troubling, there are rumors that some are stoking Justice to take other actions against MH that if true look much more like a CFPB style over-reach.   When will we pull together to say, enough is enough? 

Preserving Access to Manufactured Housing, S 682, On Hold…

With all the battles in the Congress looming, our MH bill, S 682 is on hold; part of a larger bill possibly poised for fall Senate passage.  The Marty Lavin video interview on that topic is doing well.

Manufactured Home Personal Property Loans – Are They Predatory?

Are CFPB Regulations Helping or Harming Consumers and Home Owners?

Yes, our MH lenders and the MH industry are harmed by CFPB regulations.

But a lender told me privately – that while negatively impacted – arguably far more harmed than MH lenders are the 4 estimated million living in

MartyLavinCFPBManufacturedHomeLendingRegulationsVideoInsideMH-ManufacturedHousingProNews-com-

An important, in- depth video to see and share with policy advocates, public officials, local media and of course MH Pros.

1.7 million pre-HUD code mobile homes and post-HUD Code Manufactured Homes valued under $20,000. Independent MH businesses, the lender suggested, are more harmed by the CFPB regulations too. What happened to limited federal government?  What’s happened to leaving most matters to the states?

Yes, HR 650 is thankfully passed by a healthy margin. But publicly today, who beyond our twin publications and a relative few in MH are crying out for those millions?

MH Industry Threats at Home and Abroad

Never forget that China claims to be shipping MODs for housing to dozens of nations. Don’t think for a second that they, Japan, or a firm like IKEA couldn’t turn our domestic factory-built home industry upside down within a year if they made that commitment.

Yes, the world’s a mess. We can’t ignore it, nor should we ignore our business and consumers.  This is why we’ve pushed, pleaded and prodded that MH must rise to its potential, or remain vulnerable.

MH Enemies, Friends and Mainstream TV Ads

There is an odd dance of sorts taking place between industry players, from bases such as Arlington and Indy. An industry insider told me the following, off the record:

Isn’t it amazing how many thousands of peoples’ lives in this industry have been upended

by the unwillingness of so few people to get along?

Now, a retired vet who was unofficially (allegedly) declared persona-non-grata about 2 years ago, this year finds 3 representatives of that same group at his event of a few weeks ago. What message does that send to others who want to be part of the solution for the industry? What message does that send to those who want to stir the pot, but so far, have not?

Another retired (really?) leader is said to hope to knit together a coalition of a loose business alliance to challenge the association status quo, seen as being lead by MHI.  In conjunction with that new national association plan, there is talk of their creating a national campaign for MH.

StrawberryMansionBridge-HABS2 credit Wikimedia Commons posted on MHProNews.com

The time to bridge the gaps is long overdue in MH. Frankly, even those deemed ‘trouble makers’ bring ideas to the table that are worthy of exploration. There needs to be a healthy discussion, followed by action. Otherwise, we’ll be stuck at low levels of production, when the marketplace realities suggest that we should be roaring ahead with much higher new home shipment levels. Peace through strength. Photo credit – WikiCommons.

It’s ironic how on multiple fronts, one group is walking right into another’s apparent snare, while dancing with the very one who is part of the alleged plot against their interests.

It’s been suggested by a well-placed source that one side is thinking, keep your friends close, and your enemies closer.” How ironic! The other side is thinking the same thing.  Both want to manipulate and use the other.

Far better to settle the issues, if possible. If that’s not possible, then do what ever is fair and just for the many.  We as an industry will advance when the common good and the various talents and skills the many have are brought to the table, thus bridging the various gaps and yielding profitable solutions.

Meanwhile, across town, Mark Weiss at MHARR is giving a wide berth to all of that infighting and plotting, as he focuses on issues he believes will benefit independent producers.

That “New National Association” and Their “Marketing Plan”

The plotter’s for a new association plan for a national campaign – which is certainly worthy of being done.  But do they know what professionally producing a 30 second spot for mainstream TV costs, per the Wall Street Journal?

An average :30 commercial generally costs between $300-500k, depending on how many locations, how many days you’re shooting, how much on-camera talent, and myriad other factors. Costs start to skyrocket when you add celebrities, license music instead of scoring it, heavy special effects, and so on.”

Please note. That’s not the cost of running the ads! That’s just the cost of producing one prime-time quality commerical.

That’s one of many reasons why for years MHProNews has pushed for an alternative strategy that is local market based, but yields national coverage. A plan that reflects industry realities. But that’s another Masthead post for another time. Suffice it to say for now that $2 million for 2 years could yield another $4 billion annually per year in new MH sales at retail.

Lumaxart Graphic by Scott Maxwell

Industry pros are better together, to borrow the ROC tag line. Luxmark graphic by Scott Maxwell.

Yes, we’re making progress.  Yes, its slow.  Again, egos and agendas are part of what is holding the many back. Supporting common sense might mean that some would be embarrassed.

So the struggle goes on here to thread the needle of exposing threats and opportunities alike.

People say things they don’t truly understand, based upon ego, envy, and other errors.  The off-the-record quotable quote above bears repeating:

Isn’t it amazing how many thousands of peoples’ lives in this industry

have been upended by the unwillingness of so few people to get along?

The National and MH Crossroads

Let’s step outside ourselves and use a very recent, non-MH analogy.

America is the land of the free, and the home of the brave. So Pope Francis quoted the great American hymn as part of his fascinating address to Congress. The left embraces him on issues like climate change and immigration, and the right on issues such as being pro-Life and Religious liberty. I wonder if either political camp realizes they aren’t fully or truly listening?

The papal words are quite capable of being understood – for example – not as a call to open borders; nor does he lay out a program on climate. Pope Francis praised business and the creation of jobs in English; does that sound like a socialist?

One forgets – or many didn’t know – that Argentina has lived an extreme form of crony capitalism, not something akin to America’s free enterprise system. Tyrannical power and greed are among what the Pope decries, aren’t those part of what Jesus also taught?

The current pope is a Jesuit – meaning, highly educated.  He is seeking to thread needles. He wants peace, not this unnamed Third World War being waged in Africa, the Middle East and parts of Asia where Russia and China team up with jihadis, Iran’s and North Korea’s killer regimes to foment anti-Western terror and destabilization. He says we should care for the environment, but did you hear him say we need cap and trade?  So he states a goal or principle, not how we should put a principle into action.  He said we should be just and welcoming to foreigners, not that we must ignore our own laws (which were enacted with justice to legal immigrants and U.S. nationals in mind).

Seen in the light of Judeo-Christian and much of the American tradition, does the pontiff’s full address (linked here) read anything like what either the left or right wing media portrays it to be?

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Tim Willams spoke of our industry as a fraternity, meaning, as a brotherhood. Are we routinely acting in a fraternal manner?

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Image credit – KY Olsen, Flickr Creative Commons. 

I share this as an example to say, we must learn to listen and truly respect each other. We should try to get to the heart of issues, instead of talking past each other and hearing only what we want to see, read or hear.

Confronting people with the Truth

The truth can be uncomfortable. Our Industry’s leaders need to seek the common good. We need to work for the success of our home owners, and that in turn will benefit virtually all of us.

Those who want to carve a fiefdom or an empire at the expense of the many may find themselves challenged and suffering the same fate that Kodak or Montgomery Wards did.  We are entitled to our own opinions. But we should care enough about our collective interests to subordinate ourselves to a reasonable degree of enlightened mutual self-interest.

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Triad Financial Services Chairman, Don Glisson, Jr. called for solutions, not gripes, and working between groups like MHARR and MHI, for the common good.

We need that fraternity that Tim Williams of 21st Mortgage spoke about, linked here.

We need to re-read the call to action that Triad Financial’s Don Glisson Jr issued to MHI, MHARR and all – to be goal and solution oriented, not just gripe oriented…see his wisdom again, linked here.

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15 minutes daily here and on MHProNews and on MHLivingNews saves time, becaue you get a syntheysis of news tips and views that pros can use. Investing the time – and giving support when possible – yields a proven path for MH professional and MH industry advancement.

One of my favorite quotes which we strive to apply to MH daily is this:

You can get everything out of life that you want, when you help enough other people get out of life what they want. – Zig Ziglar 

The world is in crisis. President Kennedy reminds us from his grave in Arlington that the 2 characters that spell crisis in Chinese also means opportunity.

 

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As a closing segue/promo, please take a look at our latest video on a model home named The Kennedy, linked here. And if you’ve not yet seen the Marty Lavin video interview, grab a favorite beverage and click here. ##

 

By L. A. “Tony” Kovach.