Taking the positive developments in manufactured home loan by mercy2beans115


									TAKING the
Taking the positive developments in manufactured home loan performance to Wall Street
analysts and investors and building support for increased industry financing capacity was the
primary focus of the Manufactured Housing Finance Forum, held Oct. 4 in New York City.
Organized and hosted by the Manufactured Housing Institute (MHI), the forum focused on
home-only chattel finance and brought together direct lenders, brokers, analysts, investors,
real estate investment trusts, and manufactured home producers to discuss how manufactured
home chattel lending has improved and will offer a unique opportunity to future investors.

26    modernhomes.org
                                              “I believe understanding the
                                              changing demographics that
                                              will change the face of tomor-
                                              row’s homeowners is the key to
                                              success for the manufactured
                                              housing industry,”
                                                            – Regina Lowrie

to the “street”
Forum Points Out Improvement in Manufactured Home Loan Performance

                                                                   continued on page 35

                                       november-december            2007            27
TAKING MESSAGE TO THE “STREET”                  Americans and represent 80 percent of      factured housing that can position the
                       continued from page 27   the population growth.”                    industry for dramatic growth.”
                                                  “At the same time, there will be a 147      As to first-time homebuyers, Lowrie
“The timing for this forum couldn’t be          percentage increase in the 65-and-over     noted that the current subprime lending
any better for the manufactured housing         population between 2000 and 2050,”         crisis is pushing efforts to reform the
industry. The need for affordable hous-         Lowrie noted. “By comparison, the pop-     Federal Housing Administration (FHA).
ing and common sense lending has                ulation as a whole would have increased    “FHA’s role has been diminishing due to
clearly emerged,” stated MHI President          by only 49 percent over the same period.   its inability to adapt products to current
and CEO Gail Cardwell. “As mentioned            This is a new customer base for manu-                               continued on page 39
by our panelists and investors, the
underwriting of manufactured home
loans has been tight, with delinquencies
and repossessions declining steadily.
That’s why we’re here today, to let Wall
Street know that manufactured home
lending has come a long way.”
   Keynote speaker Regina Lowrie, CMB,
President and CEO of Vision Mortgage
Capital, LLC, spoke passionately about
her belief that manufactured housing
has tremendous opportunity to serve the
housing needs of emerging markets:
immigrants, “baby boomers,” and all
other first-time homebuyers.
   “I believe understanding the changing
demographics that will change the face of
tomorrow’s homeowners is the key to
success for the manufactured housing
industry,” Lowrie stated. “It is estimated
that the white U.S. population growth
between 2000 and 2050 will decrease
from 69 percent to 50 percent. At the
same time, minorities, which accounted
for nearly 40 percent of growth in home-
ownership over the past 5 years, are pre-
dicted to account for nearly 2 out of every
3 new households over the next decade.”
   “By focusing on the minority housing
market, manufactured housing will pros-
per,” Lowrie stated. “The housing and
mortgage industries can capitalize on
these market shifts by intensifying out-
reach to Hispanics, Asians, and African
American households. The demand for
mortgage debt this decade will produce
30 million more Americans through
immigration and population growth,
representing approximately 13 to 15 mil-
lion new households. Immigration will
account for 9 million of these new

                                                                                november-december                     2007           35
announced a reorganization of the                the reorganization, Michael O’Brien,          lic policy affecting the industries, as well
Manufactured Housing Institute (MHI),            CAE, currently MHI’s Executive Vice           as representing the industries on key
the national trade association represent-        President, has been promoted to the           legislative and regulatory issues. Tom
ing the manufactured and modular                 position of Chief Operating Officer,           Beers, MHI’s Vice President of
housing industries. The move is                  where he will oversee MHI’s day-to-day        Economics, has assumed the new title of
designed to streamline the policy-mak-           operations, ensuring all association          Vice President of Economics & Housing
ing process so that its legislative, regula-     activities support industry goals and         Finance. Jeff Inks has joined MHI as the
tory and technical activities are                MHI’s approach to problem solving.            new Vice President of Regulatory Affairs
coordinated and synchronized to effec-           MHI Vice President of Government              and Industry Relations. I
tuate strategies aimed at delivery and           Affairs Brian Cooney has been promot-
maintenance of quality and affordable            ed to Senior Vice President of Public         Send Movers and Shakers items with
housing to America’s existing popula-            Policy and Government Affairs, where          photos to Cheryl Hardee at
tion and its emerging markets. Under             he will oversee the development of pub-       cheryl@mfghome.org.

TAKING MESSAGE TO THE “STREET”                   lending. Their general consensus was that     Nichols, President of Vanderbilt
                        continued from page 35   while there is a marked improvement in        Mortgage and Finance.
                                                 the performance of manufactured home            The final panel, composed of mem-
market demands and the growing obso-             loans, there is still uncertainty about the   bers coming from manufactured home
lescence of its process,” Lowrie pointed         industry’s lending due to a lack of histor-   communities and REITs with in-house
out. “With FHA reform, FHA has a real            ical data that clearly establishes improv-    lending programs, reported that they see
opportunity to grow—evolving to meet             ing performance. Panel members                lending as a primary means of gaining
consumer demand in a changing market-            included Paul Humphrey, Director,             occupancy for manufactured home com-
place. FHA will—and should—play a                Citigroup Global Markets; Rod Dubitsky,       munities, and that they see a need to
more important role going forward in             Managing Director, Asset-Backed               increase their access to the broader lend-
helping to serve first-time homebuyers, as        Securities, Credit Suisse; Gary Gal, First    ing community, including possible joint
well as minorities and immigrant growth.”        Vice President, Consumer Asset-Backed         ventures with other community lenders
   “There is a huge opportunity for man-         Securities Group, AMBAC Financial             to gain access. Panel members included
ufactured housing to meet the housing            Group; and Bill Wilson, Director, Single-     Michael Bowen, Sr., Vice President of
affordability crisis facing our nation,”         Family Lending, Fannie Mae.                   American Modern Insurance Group;
Lowrie noted. “It will take a concerted             A panel of manufactured home retail        Stephen Braun, President of Hometown
effort by the manufactured housing               lenders assessed the current business         Homes and Financial Services; Michael
industry, lenders and the investment             conditions facing manufactured home           Berman, Executive Vice President/CFO,
community to work together. The posi-            lending and explored the impacts of the       Equity Lifestyle Properties; and Samuel
tive outcome of this current housing             recent reevaluation of the risks associat-    Landy, President, UMH Properties.
market is the opportunities that are             ed with mortgage-backed securities. The         Other presentations during the forum
available to build a strong, sustainable         panel consensus was that loan origina-        included a speech by Richard Peach, Vice
manufactured housing business. Let’s             tions are up and default rates have           President, Macroeconomic & Monetary
recognize this opportunity and seize it.”        dropped significantly. However, other          Studies, Federal Reserve Bank of New
   The forum also featured several panel         asset opportunities continue to compete       York; and Tom Beers, MHI’s Vice President
presentations addressing the outlook for         with manufactured home lending and            of Economics and Housing Finance.
manufactured housing lending from dif-           that timing in the capital markets is not       MHI offers a special thanks to the
ferent perspectives.                             on the industry’s side. Panel members         sponsors—Champion Enterprises,
   A panel composed of Wall Street ana-          included Don Glisson, Jr., President and      Hometown America Communities,
lysts and investors provide their perspec-       CEO of Triad Financial Services; Ron          Fleetwood Homes, Triad Financial
tives on the performance of Asset-Backed         Klein, CEO of Origen Financial; Lyle          Services, Vanderbilt Mortgage and
Securities’ manufactured home deals and          Zeller, Executive Vice President,             Finance, and McGlinchey Stafford
the outlook for manufactured home                CountryPlace Mortgage, and Paul               PLLC—who made the forum possible. I

                                                                                   november-december                      2007          39

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