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Mary Jane Fitzcharles Gains Footing in Leadership with Ohio’s Largest Home Builder

Manufactured Housing Enterprises, Inc., at The Louisville Show
MHE Inc., shows "The Glenn Creek" model home during The Louisville Show in 2018.

Daughter of Founder Claims Succession of MHEI Following Passing of Jim Newman

CEO Fitzcharles, MHE Inc. Manufactured Housing Enterprises leadership
Mary Jane Fitzcharles, chief operating officer of Manufactured Housing Enterprises Inc.

Mary Jane Fitzcharles, CEO of Manufactured Housing Enterprises Inc., has doubled the size of the family owned business since 2014, which was a pivotal time for the home builder and the family.

Built up from farmland beginning in 1965, Fitzcharles’ father, Jim Newman, was the catalyst until his untimely death in 2014. Waiting in the wings was his daughter, who had long worked for Ohio’s largest manufactured home builder, but only reluctantly saw herself as the organization’s leader.

“He really was preparing me to run the business, and I never realized it,” Fitzcharles said of her father, with whom she enjoyed a loving and redeeming relationship. “When dad passed, I not only lost a father and a boss, he was also a best friend. Dad and I were very close.

“I never looked at it in a way that I would or wouldn’t run it,” she said. “I took each lesson that he taught with the idea that I was a lucky recipient of his knowledge.”

A Lifetime at the Plant

MHE Inc, Manufactured Housing Enterprises master bath
A master bath shower and tub cabinet from MHE Inc.

Fitzcharles grew up at the MHE plant. The family home with all nine kids was located in front of the business until 1971. When they moved, the original home became the “curtain shop,” where linens were made by Mary Jane’s grandmother for the homes they built.

Mary Jane started working at the plant in 1980, sweeping and cleaning, mowing the yards, painting shelves and baling scrap.

She began work in the office when she was a freshman in high school. Mary Jane worked each summer, and upon graduation in 1984 started full time.

“I worked in several different areas, just going wherever anyone needed me…. in HR, service, parts, answered phones, filed,” she said. “I moved around and got a little taste of a lot of different areas. And then I was transferred to the upstairs offices to be dad’s secretary, to be the office manager, and work in our accounting department.”

An Experience Learning in Life

Mary Jane’s education involved attending a vocational school during her high school years and being taught by her father.

“It seemed like every day there was a new lesson learned,” Fitzcharles said. “It has always been a conversation piece at work that being taught by Jim Newman was better than any college education you could get. The hands-on education he provided has been priceless to all of us at MHE.”

Jim never attended college, and was very successful in business. A college education was not important to him or necessary for any of his employees, Fitzcharles said. All nine of the Newman kids worked at the plant at one time or another. Mary Jane’s sister, Charlie, continues to work in quality control and dispatch.

Still, Fitzcharles at one point took on added work, for a time, beyond her father’s knowledge.

“I went to work for a trucking company, dispatching four hours a night without telling him. I needed more money,” she said. “But when they offered me a promotion to manage the terminal and go full time, this would conflict with my work hours at MHE so I had to tell my dad … and he gave me a raise to $10 per hour.”

Manufactured Housing Enterprises MHE Inc. interior living
A spacious open floor plan in one of MHE Inc.’s new homes.

Taking the Leadership Role with MHE

MHE produced more than 1,200 floors in 2018, an uptick of about 20 percent from the year prior. In that mix, 45 percent are single-section homes. Thirty eight percent are multi-section, and 17 percent of what the company builds is modular.

“We build five floors a day, working Monday through Friday. I am a big believer in family time, so we don’t have our people work on Saturdays or Sundays,” Fitzcharles said. MHE employs 150 workers.

“From the weekends when I was little, we would have to go through and clean the shop, sweep and make sure the place was in good shape for Monday when the workers came back in … Now, each department is responsible for its own cleanup. How the process has changed and the homes themselves have changed over time,” Fitzcharles said with a laugh.

Taking Hold of Sales and Production

MHE Inc. modular home
A modular home from MHE Inc.

While most of her experience prior to her father’s death was in accounting, the last four-plus years have been a rush of learning the production and sales side of the business.

“If I had it to do over and could pick the office or the factory, I wouldn’t have changed it. But I would have spent a little more time in the production facilities,” Fitzcharles said. “Learning the finance side of the business in detail first has been very good for me and for all of us at MHE.”

However, she credits Vice President Nathan Kimpel and several other key employees at MHE for their patience and the education they’ve provided her during her transition to leadership in manufactured housing.

“I have such an amazing team with me,” Fitzcharles said. “They all have been very good to me. It’s really humbling that so many people stood by me and have helped to make MHE a continued success. I don’t think it could have happened without the good Lord and so many people on my side.”

MHE Homes in the Production Environment

The MHE facility is more than a dozen structures on 80 acres of the original property. Originally, it was a parcel where her father would sell pre-owned mobile homes and used cars.

“He sold used mobile homes and thought, ‘Gosh, if I can sell used mobile homes, I can build new ones.’ He built Plant No. 1, became incorporated and started building new homes,” she said.

Manufactured Housing Enterprises Inc dining area
Cafe dining in a new MHE Inc. manufactured home.

A Business About Family

Mary Jane Fitzcharles and her husband Terry have two sons and six grandchildren. Throughout the course of her day, she has her mind on family. She thinks about her childhood, her father, about the families of MHE employees. And, of course, she thinks about the families who will buy and live in MHE homes.

“Dad was a very positive person and he taught all of us that you have to keep a positive attitude. He was always a believer in no-debt, and we’ve been able to sustain that, which I feel good about. He always said if you take care of the little problems, you won’t have very many big problems. I have a good relationship and an ‘open door’ policy with our employees, and the dealers know they can call me anytime. I feel communication is an important piece of the puzzle at MHE.”

About The Louisville Manufactured Housing Show

Mary Jane said she attended The Louisville Show for the first time in about 2009. Her father urged her to go again at least one more time. On a normal year, she would have stayed back at the office and kept things running while the others were at the show.

“The year before he died he told me I needed to go to the show in January,” she said. “They always say that people kind of know when they’re going … and then that following May he was gone.”

While she continues to verse herself on the nature of production and sales, Mary Jane Fitzcharles has goals of her own. Goals that would make her father proud.

“It was a real challenge when Dad passed away to take over that part, but I jumped in with both feet. We have a great team out there and they’ve helped me tremendously,” Fitzcharles said. “I want to continue growing our business. Since 2014 we’ve doubled our production here, and I want to continue with that pace or more. But more so, we need to make sure we continue to make a high-quality, affordable product and provide a great place to work.”

“I can’t say I ever really thought about going anywhere else. I’ve always really enjoyed my work. I like the challenge and it’s great to come to work every day. But did I ever think I’d be where I’m sitting today? Never.” — MHE Inc. CEO Mary Jane Fitzcharles.


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Gov. Bevin Touts Kentucky’s Potential for Manufactured Housing

Gov. Matt Bevin with Betty Whittaker
Kentucky Gov. Matt Bevin with Betty Whittaker, executive director of the Kentucky Manufactured Housing Institute.

Gov. Bevin Visits Kentucky Expo Center for Record Setting Louisville Show

Kentucky Gov. Matt Bevin has a vision for his state. A generation or two from now, when people think of the center of engineering and manufacturing excellence in the United States, he wants them to think of Kentucky.

He shared his vision during the Louisville Manufactured Housing Show, the Midwest’s premier industry event. Bevin gave a brief speech before touring a few model homes on the showroom floor. He made clear that his vision, if it becomes reality, will impact the manufactured housing industry in multiple ways.

Kentucky Governor Tours New Manufactured Homes in Louisville
Kentucky Gov. Matt Bevin Tours Homes
Gov. Bevin tours a home built in Benton, Ky., with Eric Coulter of Champion Homes.

The manufactured housing industry already is experiencing several years of growth. That trend may continue, if the record-setting year at The Louisville Show is any indication.

In Gov. Bevin’s remarks, he indicated that Kentucky is in position to take a leadership role in manufacturing and advanced engineering.

When asked to think of the country that exemplifies engineering and manufacturing excellence in Europe, people around the world invariably answer “Germany”, Bevin said. But when asked to think of the state that exemplifies engineering and manufacturing excellence in the United States, people give several answers. There’s no frontrunner.

“Nobody owns it the way Germany owns it,” he said. “And if nobody owns it, what does that mean? That means it’s available for ownership. I want (Kentucky) to own it. We’re well on our way.”

Gov. Bevin Wants to Cut Kentucky’s ‘Red Tape’

For Bevin, a businessman before he was a governor, the first step is attracting manufacturers. To attract manufacturers, the state has been boosting its workforce development, streamlining its tax structure and cutting red tape.

Cutting red tape — simplifying rules and regulations — not only makes it easier for companies to sell their products in Kentucky, it makes it easier for them to produce them there. Bevin referenced a manufactured-home plant that Champion built in Benton, Ky., in 2016, a plant that he’s visited in the past.

“Your product is as fine a product as exists in the marketplace,” Bevin told his audience of manufactured housing professionals. “Last year 2,600 prefabricated homes were brought into Kentucky. We’d like to see more. What will drive that is demand, and demand comes from an environment where people want to live.”

Kentucky Can Leverage Natural Resources, Infrastructure

He listed some of Kentucky’s advantages over its neighboring states. It produces more automobiles than any other state on a per-capita basis. It trails only Washington state in aerospace and aviation production. It’s already a leader in pharmaceutical and medical-device production. It has lots of arable land, excellent weather, more miles of navigable waterways than most states, and plenty of roads, railways and shipping hubs.

Despite these advantages, neighboring states like Tennessee and Indiana have outgrown Kentucky in terms of population.

“We have more natural advantages than they do, but they have more than 2 million more people,” he said. “What’s the difference? It’s tax policy. It’s business policy. It’s getting your financial house in order.

“Imagine 2 million more people. It would transform our entire housing industry. We have room for them, and the ability for them to have quality of life.”

A Closer Look at Affordable Housing

The cost of affordable housing in Kentucky is 30% lower than the national average, Bevin said.

“This is a part of the country that benefits well from prefabricated homes,” he said. “These homes are widely used, but could be so much more so.”

Bevin likened the job of putting Kentucky on a firmer financial foundation to cleaning a barn after a long, hard winter. He has to shovel out a lot of the crap that’s piled up.

“It’s not fun, it’s not easy, but that’s alright,” he told his audience. “You can help us by telling us what we need to shovel out. What’s under the feet of your industry?”

Workforce Development for Manufactured Housing

MHInsider asked Bevin how Kentucky’s workforce development programs can help the manufactured housing industry.

Bevin listed skilled-trades training and apprenticeship programs in high school and work-ready scholarships for all ages. Many of those are paid for, at least in part, by $100 million the state has offered in workforce development and training programs.

He said there are five broad employment areas in Kentucky with the greatest number of open jobs. Those five areas — health care, information technology, logistics, advanced manufacturing, and construction — encompass 60 disciplines, including construction trades such as carpentry.

Strategic Partnerships Key to Workforce Development

About two years ago, the state government offered $100 million in workforce development for those industries. They had to compete for them, however. In order to compete, they were required to include the local business community, local high school and local post-secondary school (including four-year universities, technical and trade schools) in their requests for funding, Bevin said.

Requests for funding reached $540 million, he said.

“We got to select the top 18% or so,” Bevin said, but “we wouldn’t fund all of any idea, no matter how good. We want local skin in the game, from the business community and local government. People who have a vested interest in something get better results.”

The state’s $100 million was matched by $150 million of local and private money.

“These are just seeds going in the ground right now,” Bevin said. “We’re at the very front end of starting to see anything out of that pipeline, but it’s coming.”

He said the state will continue to invest in workforce development programs.

Veterans an ‘Untapped Marketplace’

Bevin mentioned another “untapped marketplace” of employees for industries like manufactured housing: Kentucky’s two major military installations. Every year, 6,000 people leave the military out of Fort Campbell and Fort Knox. Many of these highly skilled, highly disciplined people will go back to their home states, but many might be tempted to stay in Kentucky.

“How can we connect these folks to your industry?” Bevin asked the audience.

The Louisville Show Attendance Sets 60-year Record

The Louisville Show Attendance education session
Representatives from Fannie Mae and Freddie Mac update manufactured housing professionals on chattel lending for homes during the The Louisville Show.

Midwest Cold Snap Can’t Keep Crowds Away

Paul Fato and his wife Judy are among the 3,575 registrants to help set a Louisville Show attendance record, the top opening day in the gathering’s 60-year history — even amid some of the coldest temperatures in decades.

The Louisville Show is organized and attended by manufactured housing professionals primarily from Ohio, Indiana, Michigan, Illinois and Kentucky.  Each of those states are wrestling with temperatures near zero, with the more northerly states enduring wind chill temperatures that dip to -50.

Louisville Show Attendance
Paul and Judy Fato, community owners and retailers from West Virginia, celebrated their 52nd wedding anniversary at The Louisville Show.

The Fatos operate The Meadowlands manufactured home community and Twin Oaks Home Sales in West Virginia. The couple came to The Louisville Show to shop for homes, primarily for the independent dealership.

“I look for something that’s a bit different,” Paul Fato said. “There is a Commodore home with a slanted roof that I have my eye on. I’m going to be picking up one of those. And we’ll keep a lookout for other interesting features that will provide variety on the lot and something that will catch the eye of a homebuyer.”

He said 2018 was a good year, and he anticipates 2019 to match if not exceed last year’s sales. The Fatos, celebrating their 52nd wedding anniversary at The Louisville Show, said they skipped an annual late year trip to Florida and had the best ever fourth quarter for sales.

“We have a very competitive market,” Paul Fato said. “There are two Clayton dealers within six miles of my retail center. But that’s good, because it brings people to the area to shop for homes.”

Louisville Show Attendance Model Home
A new model home from Commodore draws attention at The Louisville Show.

Louisville Show Attendance Signals an Energized Industry for 2019

“The number of attendees Wednesday morning to open the show were stronger than we’ve experienced even during the best years,” said Dennis Hill, who heads Show Ways Unlimited, which produces The Louisville Show and other manufactured housing trade shows. “Our opening education sessions were standing room only and very well received.”

The sessions – on finance, marketing and purchasing – held an audience of 200-plus attendees. Meanwhile, the other 3,300-plus professionals toured the new model homes and mingled with service and supply exhibitors.

Joe Viglione, from Fairmont Homes, said the presence of retailers among The Louisville Show attendance is stronger than he’s experienced in his three-plus decades in the business.

“Retailers tend to start showing up about 10 or 11 o’clock on opening day. This year they were here first thing. That means they came the day prior, which signals to me a great deal of enthusiasm toward purchasing this season.”

Louisville Show Attendance Exhibitors
The service and supplier exhibit area at The Louisville Show was humming early in the morning on opening day.

The Drive Down From Chicago

Jim Hynd, sales manager for AERT, based in Springdale, Ark., drove to Louisville from Chicago. He braved the cold to be among the record Louisville Show attendance in preparation for entering the industry.

“We’re looking to provide advanced decking and railing solutions for manufactured housing,” he said. “I’m here to take a look at what’s available now and how we might fit in.”

The Louisville Show is a manufactured housing industry trade show and is not open to the public. Attendance includes special guests and industry professionals in the areas of manufacturing, retail sales, community ownership and management, financial services and product supply.

2019 Home Trends and Offerings in Manufactured Housing

New kitchen features in 2019 home trends
The updated Ultimate Kitchen from Champion. Photo courtesy of Champion Homes.

MHInsider Takes Look at Home Trends at The Kickoff for the 2019 Trade Show Season – The Louisville Show

New product trends 2019 open floor plan
Open, airy and light-filled kitchen, dining and living space. Photo courtesy of Champion Homes.

Every January, The MHInsider magazine for manufactured housing professionals strives to bring readers the latest and most relevant home trends, offerings and products for the coming season.

In researching our annual home trends piece, we had conversations with dozens of sources from a variety of manufacturers. We asked what new offerings they could point to that came from customer need, whether that customer is a homeowner or home seller.

After all, each one of us is in the solutions business. And each new model at The Louisville Show has that signature mark that is an important step up in lifestyle offering, home efficiency or general comfort.

So take a look, prepare for what you’ll see in Louisville, and get ready for a great sales season!

Kitchens in new home trends for 2019
The Ultimate Kitchen III from Champion Homes is unveiled at The 2019 Louisville Home Show.

Champion Homes Ups the Ante with Ultimate Kitchen Series

Ultimate Kitchen 3 continues the offerings that have built a reputation of sleek design and cutting-edge amenities.

The latest edition provides more innovation, from its European-inspired industrial styling to its state-of-the-art conveniences.

UK3, as it’s come to be known, features:
  • A cooking station equipped with a stainless steel slide-in range
  • Easy to access front controls
  • Stainless steel backsplash
  • Folding chrome utility racks
  • and a slim, Euro-style range hood

“The way we designed this package allows us to be very flexible. It can go into any home, any size, any configuration. We can make all of these beautiful new features work to the greatest of their ability in the space the customer most desires,” said Roberto Kritzer, Skyline Champion Corp.’s vice president of design.

“We are working toward implementing this new kitchen package in the newest models each day,” Kritzer said. “This kitchen goes into manufactured homes, modular homes. We’ve already put it in park models and community series homes.”

Sleek Lines, Stainless Styling Goes Beyond Appliances

Home Trends 2019 Champion Kitchen
The Ultimate Kitchen from Champion has gained a dedicated following. Photo courtesy of Champion Homes.

Champion floats stainless steel shelves for added storage space, as well as a raw, utilitarian look that contrasts nicely with the warmth of the Shaker-style cabinetry. The look continues its blend of texture and color with clean lines by assigning modern cabinet pulls, glass subway tile backsplash and stainless steel appliances from Whirlpool.

“I’m excited about the all-new UK3 that our design team has created. They have integrated several trending features into this design that new homebuyers are looking for,” said Mark Yost, Skyline Champion’s executive vice president.

UK3 boasts improved utility through ample storage space in the cabinets, drawers, and cubbies. LED accent lighting behind the frosted glass of overhead cabinets opens the room with subtle hues that showcase the profile of nicely stored stemware.

The Farmhouse Sink Remains Relevant

And, what would the offering be without that amazing farmhouse sink?

“You will see features that really have only been seen in upper-scale site-built homes … recessed LED mirrors, super islands, pot filler sink,” Skyline Champion Director of Community Sales Byron Stroud said of the plumbed-in flex-neck faucet. “It reaches over the range so you can fill a large pot without having to carry it.”

The sink also has a designated straining basket, drying rack and cutting board. It contains a protective bottom rack to help prevent scratches. And the focal point of the sink is the black and brushed nickel faucet that provides the flex neck user experience.

Kritzer said “less is more” remains at play, despite the introduction of so many new features.

“We wanted to keep that open feel. The stainless steel shelves do this. And the nice blend between contemporary and modern, it works very well with the overall theme of clean lines and an open feel,” Kritzer said. “We managed to maintain the feel we wanted, but create a look that you really only have seen in very expensive kitchen configurations.

“The response has been phenomenal.”

New Home Trends Adventure Model
Interior design and comfort in a new Adventure home. Photo courtesy of Adventure Homes/Johnston Photography.

Adventure Homes Unveils Nevada Series

Adventure Homes, a manufacturer based in Garrett, Ind., plans to use the Louisville Manufactured Housing Show to introduce its Nevada Series of homes to the general public.

General Manager Rich Rice said the Nevada Series is for people who “want to get the high-end look without the high-end price.”

The Nevada homes will include a drywall finish, which is trending for buyers who are interested in the more traditional site-built residential look.

“You won’t find anybody who will offer a drywall product as inexpensive as ours,” Rice said.

He said homebuyers these days want the affordability of a manufactured home but with more of those same high-end features common in a site-built home. Hardwood cabinets, painted finishes, high ceilings and a variety of carpet and wall color top the list.

“The more we can mimic site builders, the better our sales will be,” Rice said. “It’s almost like we’re taking the mobile home out of the house.”

However, some sales truisms are unchanged, he said. Kitchens and bathrooms always sell houses, for example. But changing customer expectations push manufacturers to add features like white and gray cabinetry.

‘Gray is the New Beige’

Interior decor new home trends
Photo courtesy of Adventure Homes/Johnston Photography.

“There’s a quote: ‘Gray is the new beige,’” Rice said. “Not that everybody wants it, but it should be represented in your offerings.”

Contemporary home buyers like an abundance of windows throughout the house. Many fall in love with a welcoming entrance, which can include bold accent colors, sidelights and transom windows over the door, he said.

There also are evolving ideas about use of space. Bedroom space often was sacrificed in the past for larger dining and living rooms. But now larger bedrooms are in vogue. In response, designers are finding ways to maximize space in the home’s communal areas — installing an eating island and removing the dining table, for example. Parents also want “bonus space” in the house — a place they can send their kids to get some peace and quiet, Rice said.

Versatility in 2019 new home trends
A versatile room for workout or office time, from Adventure Homes. Photo courtesy of Adventure Homes/Johnston Photography.

Fleetwood Homes Looks Toward Clean, Simplified Designs

Where Fleetwood Homes are manufactured, builders are working on simplified designs that have a clean look and are easy to maintain for a new homeowner. Those design decisions will show up in the company’s 2019 models, including those on display at the Louisville Show.

new home trends home rendering
Rendering provided by Fairmont Homes/Cavco.

“I think you’ll see this year, not only in our product but with the industry backlog, the homes have gotten a bit simpler,” Fleetwood Homes National Design Manager Russell Bratcher said.

As an example of simplification, last year Fleetwood brought a three-box modular home to the Louisville Show. This year they’ll have a two-box mod. It’s a little easier to build and a little easier to set up. It’s also easier to maintain.

“We’ll have straight-line cabinets, more clean lines, like a craftsman look in the molding rather than those heavy profiles in crown molding and such,” Bratcher said. “On our products, we are going back to more of a straight-line look that’s easy to install and will have fewer if any service issues.”

new home trends 2019 interior rendering
Interior rendering provided courtesy of Fairmont Homes/Cavco.

Go For The ‘Vintage Look’

Vintage looks with a combination of matte and shiny finishes will create some “eye candy,” he said. Improved wood grains in linoleum flooring have made its use much more common. And greens and blues are coming back to dominate the color schemes, Bratcher said.

“Large-tile showers are still trending, and large, wide windows throughout add some pop, too,” Bratcher said.

Cabinet colors continue to trend toward lighter, with whites and grays. There is less of the hardwood look with browns and cherry color.

“We’ll still mix some of that in, but as an accent rather than a whole,” Bratcher said. “It’s all about mixing the colors for texture. Back in the day, if you had white appliances, you would have all white appliances. But the design approach today is more with thoughtful mixing and matching of, say, stainless and black.”

Fleetwood Homes in Lafayette, Tenn., will show three homes at Louisville, including a single- and multi-section home from the Sandalwood line. Fairmont Homes, another builder under the Cavco family of brands, will show one multi-section home, one single-section home and a modular model.

Bratcher said energy is high in the industry, including among the builders and retailers in his network.

“As a company, we’re anticipating continued growth,” he said. “When business was tough, we were doing more customization. We were more willing to move a window or a door to sell a manufactured home. But the orders have been so high, and we anticipate them going up again in 2019. We’re really working on that efficiency in production.”

New product trends in Louisville 2019
NXT Homes, a new line from Clayton Homes on display at The Louisville Show.

Clayton Homes Gets More Design-Intensive for 2019

Flex space has become a primary initiative among designers at Clayton Homes, which operates 40 manufacturing facilities nationwide.

“We have this concept toward a flex space in floor plans. This is a space that’s not designated as a bedroom or anything else,” said Clayton Homes Lead Designer Ashley Skowron. “Some people might make it a bedroom, but it also may be a craft room or office, or playroom for the kids.”

Skowron said Clayton has begun to emphasize a more centralized, team approach for design decisions. Part of that initiative means a lot of travel, touring facilities and meeting with retailers in most markets.

“The flex room is something that retailers really have done well with,” she said. “People say it’s great for the kids … to have a den or extra space from the main living area, but when the parent becomes an empty nester, you can repurpose the room for another need.”

New Home Trends from Clayton Homes Shower Stall
A windowed shower stall with luxury fixtures from Clayton Homes. Photo courtesy of Clayton Homes.

And while the farmhouse look remains relevant among home trends for many builders and buyers, Clayton is finding ways to regionalize the aesthetic.

“We have five or six different farmhouse-style homes right now rolling through different facilities,” said Corporate Communications Manager Audrey Eason. “All drywall, hard surfaces, big open windows, kitchen island, stylistic light fixtures, shiplap and other texturing.

“So you have plants that supply a particular region and they can stylize it in a way that really fits the culture, the expected look for that region,” she said. “Every region has its own farmhouse look.”

 

Modern Architecture, Style Choices On the Rise

The luxurious master bath is a major part of 2019 new home trends. Photo courtesy of Clayton Homes.

Skowron points to NXT Homes, a new series out of Athens, Texas. She sees it as an indicator of design preferences steering toward more modern looks.

“That home follows suit, with the light and bright cabinets and natural oak color trim, the increase in linoleum,” she said. “The NXT Homes models really are pushing forward the trends we may see take hold during 2019.”

Each home uses canned lighting, for instance, rather than decorative globe lighting.

“There will be more shiplap wallboard, open shelves, marble surfaces, bold colors, a bit of brushed brass in the mix,” Skowron said. “Low maintenance products are something we are always mindful of, for ease of use and lifestyle improvements.”

Technology comes to play in the new models too, particularly those with modern features. The Clayton Series homes and the NXT Homes all will be appointed with ecobee smart thermostat systems, for instance. Some will have smart doorbells and built-in surround sound.

“The same design intent typically goes in both single- and multi-section homes, too,” she said. “We take features out of one home and can push it into a different floor plan, which includes a powder room, his and hers closets, flex space … all of these features are in the single-section as well as the multi-section home.”

Datacomp Releases Jan. 2019 Manufactured Housing Community JLT Market Reports for Ariz., Ga., N.C., N.M., Nev. and Utah

JLT Reports for Alabama and Georgia

January JLT Market Reports include information on 413 communities from 14 major markets in six states

Datacomp, publisher of JLT Market Reports and the nation’s #1 provider of market data for the manufactured housing industry, announces the publication of its January 2019 manufactured home community rent and occupancy reports for 14 markets in Arizona, Georgia, North Carolina, New Mexico, Nevada and Utah.

Recognized as the industry standard for manufactured home community market analysis for more than 20 years, JLT Market Reports provide detailed research and information on communities located in more than 170 major housing markets throughout the United States. This includes the latest rent trends and statistics, marketing programs and a variety of other useful management insights.

Datacomp’s manufactured housing data published in the January 2019 JLT Market Reports includes information on 413 “All ages” and “55+” manufactured home communities located in 14 major markets. Altogether, the reports include data representations for 95,682 homesites.

January JLT Market Reports for MH Communities
Courtesy of EquityLifestyle Properties

Manufactured Housing Community Occupancy on the Rise

“Ten of the 14 major metros in our JLT Market Reports for January experienced overall growth in occupancy, and each of the six states represented experienced occupancy growth,” Datacomp Co-President Darren Krolewski said. “A dozen of the 14 major metros in January’s reports also showed increases in average adjusted rent, and state-by-state adjusted rent increases averaged more than 3.8 percent compared with January 2018.”

Each JLT manufactured home community rent and occupancy report includes detailed information about investment-grade communities in major markets. Information includes number of homesites, occupancy rates, average mobile home community rents and increases, community amenities, vacant sites, and repossessed and inventory homes.

Established reports show trends in each market, with a comparison of January 2019 rents and occupancy rates to January 2018. In addition, there is a historical recap of rents and occupancy from 1996 to present date in most markets.

The January 2019 JLT Market Reports for 14 markets in Arizona, Georgia, North Carolina, New Mexico, Nevada and Utah are available for purchase and immediate download online at the Datacomp JLT Market Reports site, or they may be ordered by phone in electronic or printed editions at (800) 588-5426.

Each fully updated report for mobile home communities is a comprehensive look at investment-grade properties within a market, enabling owners and managers, lenders, appraisers, brokers and other organizations to effectively benchmark those communities and make informed decisions.

InnovaLaB Land Bank Dissolved by County Will Continue Operating with Michigan Land Bank

InnovaLaB Champion Homes partnership
The Creston, a new modular home from Skyline Champion Corporation, is among the most popular models they sell. This home sits on the 1000 block of Cooper Avenue SE in Grand Rapids, Mich.

Modular Home Placement for Middle Market Infill to Proceed in Michigan

InnovaLaB, the former Kent County (Michigan) Land Bank, will spend much of 2019 ramping down projects under supervision of the county. Yet, the organization will continue with the Michigan Land Bank in the implementation of modular housing to meet middle market demand.

“The state land bank contracted with us to do modular,” InnovaLaB Executive Director David Allen said. “The state is not going to let that go to the wayside. It’s very important work.”

The Kent County Board of Commissioners voted 11-8 on Dec. 20 to dissolve the county effort. It pointed to “mission creep” as the primary reason for dissolution. In 2009, the organization began to assist the county in clearing land titles. Its focus has been on tax-foreclosed properties following the economic downturn. However, when the land bank rebranded to InnovaLaB and began placing modular homes, it raised some concerns.

“…based on the improved real estate market in Kent County, information received from stakeholders during the 2018 review, the ability to reestablish a land bank should economic conditions falter in the future, the termination of the current land bank is warranted, as KCLB has completed its original mission,” county commission meeting minutes stated.

Kent County Land Bank home center
From left, Steve Payne of Champion, David Allen from InnovaLaB and Dan Grant of Champion, in the former Kent County Land Bank’s home center.

Skyline Champion Homes Provides Modular Construction for Land Bank Homes

Skyline Champion Corporation provides InnovaLaB with modular homes to create city infill. The partnership prepared land for, and installed, three new homes last year. They plan to drop another 13 modular residences in the next several weeks, some of which are duplex homes.

The idea is to use modular construction and take advantage of construction and cost efficiencies through building indoors. Single family homes for less than $200,000 are difficult to find in the Grand Rapids area. Prices have gone up about 13 percent in the last year, further leaving homebuyers searching for affordable solutions. The modular equivalent of a site-built home can provide a new dwelling to fit middle-market demands.

Champion Modular’s plant in Strattanville, Pa. constructed and delivered the three homes. And all arrived ready to set on their foundations within four weeks. Each home came in at about 70 percent the cost of what its site-built counterpart would be.

InnovaLaB is under contract with the Michigan Land Bank to provide affordable modular housing across the state.

Median Home Prices Per Square Foot

The median residential price per square foot in the U.S. is $148, and in city of Grand Rapids it’s about $129 per square foot and $142 per square foot median in the metro area.

During the summer of 2018, InnovaLaB and Champion installed the three homes in different neighborhoods in the southeast and northeast parts of Grand Rapids, Michigan’s second most populated city. Those modular homes are available on the area’s multi-list service and can be located and obtained by an individual with or without help from an agent.

The steady increase in home prices, even with slowing increases during the last six months, has placed a great deal of attention on factory-built homes, including modular.

“Modular really has gained a lot of traction,” Steve Payne, director of business development for Skyline Champion, said. “Modular is a very effective system, and you can do a lot with it.”

The limitations to a modular product really only depend on the parcel where the home is being placed, he said.

A new home from the InnovaLaB Champion partnership.
A new single-family modular residence dropped in July on the 1800 block of Herrick Avenue NE.

‘Mission Creep’ Comes from Plan to Provide Affordable Housing

InnovaLaB’s new name and branding, as well as its contract with Champion and work outside of Kent County, were the primary components of what county commissioners saw as “mission creep”. Commissioners in favor of the dissolution of the land bank noted that the organization was to clear messy titles, not provide affordable housing.

About two-thirds of the 20 county residents who spoke during public comment at the Dec. 20 meeting supported the continued work of InnovaLaB. They cited need for non-profits to have continued protection to support their mission of providing affordable housing. However, others cited undue competition with commercial developers, builders, brokers and agents.

John Francis, of Grand Rapids, represented the Commercial Alliance of Realtors in his comments. According to public record on the meeting, Francis conveyed the sentiment that the land bank violates free and open markets. He said the organization fulfilled its promise, and should be dissolved.

How Does the Operational Change of InnovaLaB Impact the City of Grand Rapids?

Grand Rapids City Manager Mark Washington penned a letter to Kent County Administrator Waymon Britt asking the for reconsideration of the land bank’s dissolution.

Grand Rapids city manager points to unfinished projects under agreement between the two local governments:
  • 7 active agreements with KCLB between 2013 and 2018
  • 187 parcels under KCLB ownership within the City of Grand Rapids
  • 24 affordable housing units to be delivered under the 2016 and 2017 agreements
  • 10 strategic development parcels of concern in the city
  • 21 properties to be converted to the city from KCLB under the 2018 agreement

Washington said the city deserved more time to consider the implications of discontinuing the land bank’s work.

“The partnership between the City of Grand Rapids, Kent County and Kent County Land Bank Authority has produced positive housing outcomes for our community,” Washington told MHInsider. “This work is not done. We have nearly a year left under the current agreement and several affordable housing projects are not yet completed.

“I am concerned about the future since the majority of the Land Bank’s work has been in the city of Grand Rapids,” he said. “The conversation to dissolve the land bank progressed so quickly… I requested the county consider a year rather than six months to wind down the affairs, and the County agreed to this.”

Washington said the City will take the year to address current and future development opportunities and identify strategies that will improve affordable housing. Also, it will consider other land banking strategies independent of Kent County.

“It is too early to know how we will move forward on these matters without engaging the city commission in a public discussion,” Washington said. “I anticipate having a briefing with the city commissioners during the regularly scheduled meeting on January 29.”

Keep Clients Entertained at These Louisville Hot Spots

Find a Louisville hot spot for client drinks and food.

We Know When You Attend the 2019 Louisville Manufactured Housing Show Jan. 30 – Feb. 1, You’ll Need Some Places to Take Your Clients. Here Are a Few Tips!

You’re headed to the 2019 Louisville Manufactured Housing Show. And although you’re excited to check out all the innovations, and hear the industry-leading speaker presentations, you probably would welcome a chance to get some fresh air and change of scenery.

Why not grab your favorite clients and take them to one of these Louisville hot spots to eat and drink in downtown? From the Crowne Plaza, most spots are just an 8- to 13-minute drive.

Louisville Hot Spots - Quill's Coffee
A remote worker gets a cup of coffee and completes a few quick tasks. All photos courtesy of the Louisville Tourism.

Daytime Excursions to Louisville Hot Spots

Grab coffee or brunch before your day of exploration, or step out for a lunch break at one of these loved locations.

Quills Coffee Firehouse: Strongest coffee and tea in the city, say reviewers. Delicious pastries as well — try their homemade take on Poptarts!

Highland Coffee Co.: Try their vegan chocolate mini bundt cakes, on-tap kombucha or something off their classic coffee menu.

Harvest Restaurant: Open in the mornings only on weekends, this popular spot — called “eclectic” by reviewers — features stratas (breakfast casseroles), smoked pork belly and pretzel croissants.

Wild Eggs: An open and friendly space featuring daily grits specials, pomegranate mimosas and classics old and new. Reviewers say any wait is worth it.

The Café: An enchanting and tucked-away gem. Great for a classic, hot and affordable breakfast or lunch — try their cake!

Louisville Hot Spots for Small Group Networking

Bourbon, especially in an Old Fashioned, is the classic drink in Louisville. You’ll miss out if you don’t have a taste. But Louisville’s drink scene is actually quite diverse. Anyone for a Mint Julep or Kentucky Mule?

Down One Bourbon Bar is a Louisville Hot Spot
Plan a VIP reception, or just stop in, at Down One Bourbon Bar.

No matter your drink choice, try toasting your client at one of these hot spots:

Doc Crow’s Southern Smokehouse & Raw Bar: Southern cooking, a hip atmosphere and plenty of bourbon drinks. Famous for their oysters and BBQ.

Down One Bourbon Bar & Restaurant: Alongside classic, affordable American fare, this bar features over 160 bourbons. You’re bound to find something you’ll like. A quick walk from Doc Crow’s, you could stop by both to check off two spots on your “Urban Bourbon” tour.

Buck’s Restaurant & Bar: A little more upscale, this spot is covered in flowers. Perfect for showing your client a bit of “old world” class.

Galaxie Bar: Tacos, craft cocktails or beer more up your alley? This spot features global-inspired fare, Wednesday night trivia and weekend dancing.

Holy Grale: Housed in an old church, this spot serves up beers from around the world, prioritizing local fare and a community atmosphere.

Fine dining Louisville hot spot Volare
Volare is a classic fine dining hot spot in Louisville.

For a Big Night in Louisville

Want to host a party or presentation in a larger space? Need a restaurant that easily accommodates large groups? These Louisville hot spots fit the bill.

Volare Italian Ristorante: Elegant, cozy, perfect ambiance — oh and the food is some of the best Italian fare you’ll experience, according to reviews. Call ahead and it should be easy to reserve a spot for a larger group.

Havana Rumba & Tapas Bar: Plenty of tapas, cheap margaritas and specialties such as bacon-wrapped dates. With Monday night’s half-off tapas deal, you can’t go wrong with this place. Call ahead to reserve a spot for a larger group.

Lilly’s Bistro: Offering seasonal fare and handpicked cocktails, this spot is perfect for a party of 20 or fewer. Contact Jeff to plan your menu and reserve the back room.

Proof on Main: Inside Louisville’s 21c Art Museum and Hotel, this restaurant also features locally sourced fare.  A variety of conference rooms can fit parties of 10 to 400. Your clients can enjoy art, artisan cocktails and, of course, bourbon.

The Wine Studio: Give your clients an immersive experience by renting this unique spot. Guests can network on the patio attended by a wine steward and watch a chef prepare their meals (menu chosen by you). Call 502-636-0783 for more info.

Manufactured Housing Professionals Talk Resident Relations

Resident relations with a hospitality mindset
Residents at an Equity LifeStyle Properties waterfront community in Florida enjoy the amenities.

Resident Relations Start With Firm But Personal Approach, MH Pros say

Hand-written “thank you” letters. Free cable and internet. Streetlights. New entrance signs. Landscaping. Those are just a few ideas community owners can use to build positive relationships with residents.

The MHInsider revisited several conversations it engaged in during 2018 to provide readers with a professional perspective on resident relations in manufactured home communities.

Amy McMahan, co-owner of Stoneoaks, a manufactured housing community in Longview, Texas, talked about the importance of building relationships.

“When your tenants feel worthy, there’s no end to what they’ll do for you,” she said.

Sun Communities focuses on all aspects of resident relations
East Fork Crossing is a Sun Communities property in Batavia, Ohio.

Face-to-Face Conversations Can Save the Day

Just talking to a resident in person can make a world of difference, McMahan said. She used a story to illustrate her point.

Shortly after she and her partners bought Stoneoaks, McMahan noticed a resident who parked his “ugly” truck and trailer in his front yard, a violation of the community’s bylaws. McMahan said, with a touch of humor, that the resident was a bit “mean-looking.” The man was hardly ever seen. And he seemed unapproachable when he was out in the community, she said.

McMahan could have sent the man a letter or simply fined him for violating the park’s bylaws. But she was a new owner and wanted to establish good relations with her residents. So, she decided to just walk up and ask him nicely to park his truck behind his house.

His initial reaction was a “little bit Scroogy,” she said. However, by the end of the conversation he had agreed to move his vehicle. He hasn’t parked in his front yard since, she said.

“He surprised me, he was so willing to do what I asked,” McMahan said. “You get more with sugar than you do with lemon.”

Provide Residents the Chance to Make Positive Change

Another resident had a “ratty” chicken coop fence that was disallowed.

“I could have fined them immediately,” she said, but “since we were the new sheriff in town, we didn’t want to make enemies.”

McMahan simply walked up to the residents, told them the fence violated the park’s bylaws, and they took it down that day.

“It’s how you approach them,” McMahan said.

An impersonal or derogatory approach can backfire. Fining residents can be a hassle. But if you ask them nicely to comply, and they see that you’re trying to improve the look of their community, they’re much more likely to fall in line, she said.

“It saves money, the park looks better and, most importantly, you improve your relationships with your people,” McMahan said.

Resident relations extend to common areas in communities.
Residents at The Hamptons, a Sun Communities’ property in Auburndale, Fla., play bocce and pickleball.

Equity LifeStyle Properties Holds Quarterly Meetings with Residents

Equity LifeStyle Properties’ Ron Bunce and Bruce Thelen of Sun Communities discussed building relationships from the perspective of corporate community managers.

Bunce, a senior vice president with Equity LifeStyle Properties, said no matter the size of the community, the manager must be visible and approachable. Annual training programs help Equity Lifestyle managers hone their resident-relations skills.

In disputes among residents, the manager must be a neutral mediator, unless there’s a blatant rule violation by one side. Equity LifeStyle Properties asks its regional managers to meet at least quarterly with resident groups to update the latest plans to pave a road, fix a pool or put a new roof on a building, for instance. Residents appreciate being kept in the loop, Bunce said.

If a resident gets upset or feels their issue is being improperly addressed by a manager, they can call the Equity LifeStyle Properties’ regional office. If they’re still unhappy, they can call the national office.

“Sometimes, they just get frustrated,” Bunce said. “We give them an outlet to address their concerns.”

Equity Lifestyle residents at an Arizona resort hit the pool. Photo courtesy of ELS.

Managing Community Reputation on Social Media

Another outlet that’s growing by leaps and bounds is social media. But that can be a double-edged sword.

Praise and complaints travel quickly on social media outlets, which require constant monitoring.

Equity LifeStyle Properties employs a team to do so. The team makes decisions about comments made on Equity Lifestyle Properties community sites. They may be selective as to which comments get a response, but all comments are reviewed and taken seriously, Bunce said.

In general, the quicker the response to a social media post, the more effective the response will be. Most problems can be solved by simply reaching out to the person who posted a comment. Let them know they’re being heard, he said.

On the other hand, if a customer says something favorable about an Equity Lifestyle Properties community, the company encourages them share the comment online. Positive feedback on sites like TripAdvisor, Travelzoo and Google can make a community’s reputation. Equity Lifestyle Properties constantly monitors its ratings on these sites, Bunce said.

Sun Communities Works Together with Residents on Conflict Resolution

Bruce Thelen, a senior vice president with Sun Communities, said his company monitors social media posts about its communities. Sun Communities’ policy aligns with the general online consensus that negative comments should not be removed, but should be responded to as quickly as possible.

Offline, Sun Communities requires every one of its community managers to have at least three contacts per day with residents — either in the office or by knocking on doors. An emphasis in the Sun Communities training sessions is placed on making employees comfortable having difficult conversations with residents. As a way to improve the focus on customer relations, Sun Communities’ regional managers will ask community managers about their most difficult resident, knock on that resident’s door and ask them what’s wrong. Simply having a conversation can often be enough to satisfy the resident, Thelen said.

He gave an example of a difficult conversation that led to a positive outcome. At one of Sun Communities’ RV resorts, an annual guest had a golf cart painted like the General Lee, the car from the 1970s-80s TV show “The Dukes of Hazzard” — right down to the Confederate flag. Other residents, offended by the open display of the Confederate flag, expressed concern to management.

The managers decided on a direct approach. They told the golf cart owner about the situation, which seemed to surprise him. He just liked “The Dukes of Hazzard”. The managers offered to pay for a new paint job — replacing the Confederate flag with the American flag — and the owner agreed.

“When addressed directly, in a respectful manner, the solution was simple,” Thelen said.

The MHInsider Prints Six Issues Starting in 2019

The MHInsider Magazine Expands Coverage
MHInsider Magazine for manufactured housing professionals.

Bi-Monthly Circulation, Hiring of New Managing Editor Expands MHInsider Coverage of Manufactured Housing

MHInsider Magazine for Manufactured Housing Professionals

MHVillage, the nation’s number one marketplace for manufactured housing, has announced two big changes to its industry trade publication for manufactured housing news, The MHInsider magazine. Starting in 2019, the company will publish six print issues per year.

The magazine in its first year published quarterly with added distribution for industry events.

The MHInsider also has hired a new managing editor, Matt Milkovich. Milkovich had served as managing editor for a pair of agriculture industry trade publications for many years.

MHInsider’s previous managing editor, Patrick Revere, will continue working with the magazine as executive editor. Additionally, he will serve as director of content for all MHVillage publications.

The MHInsider Magazine, Powered by MHVillage

MHVillage assists consumers in finding mobile homes for sale. Each year, MHVillage.com registers approximately 25 million unique visitors. Furthermore, the website in 2017 boasted 148 million page views. The platform created more than $3 billion in home sales and rentals in that year alone. MHVillage provides many services to consumers and professionals including resources for those in the areas of home building, retail, community management, brokerage, investment and finance.

The goal of MHInsider is to create an industry-positive and informative medium that strikes a balance between feature profiles, industry trends and the latest news. The magazine is a companion publication to the MHInsider blog for professionals. We update the blog on a regular basis to provide the latest industry news and trends for manufactured housing professionals.

In addition to staff contributions, each edition of MHInsider magazine includes news and information by leading industry sources. This includes contributions by writers from the Manufactured Housing Institute, Fannie Mae, Freddie Mac and more.

The MHInsider magazine was created in part to fill an industry void. Prior to its launch in January 2018, the manufactured housing industry had been without a print trade publication. The last industry journal discontinued publication in December 2016.

Readers can sign up at MHInsider.com to receive the print magazine in the mail, as well as read an electronic version of the magazine and sign up for the newsletter.

MHInsider Magazine covers the manufactured housing industry
A feature story on new development printed in the 2018 Tunica Show Special Edition.

Interest Rates Matter Less Than You Think

Lenders need to understand how to talk about rates

Most Customers Ask About Rates, But Are More Concerned with Monthly Payment

Ken Rishel on interest rates
Ken Rishel, Rishel Consulting Group

One of the topics that often comes up when discussing captive or outside financing of manufactured homes is interest rates. The lament especially with outside lenders is “If the lender’s interest rates weren’t so high, we could sell more homes”.

One of my best friends in the industry harped on that over the years. And I have heard that from many others, including in discussion of where captive finance rates should be set.

However, nothing is farther from the truth, especially in these post Dodd-Frank Act days, with the limits now set as low as they are.

‘What Is My Monthly Payment?’

I think this idea stems from seeing the deal through the eyes of the owners rather than through the eyes of the customer. Certainly, if most of us were to encounter double-digit interest rate offers on a personal mortgage, we would run from it. But the great majority of our customers are very different. Unless a retailer is selling to five-star customers, the average customer is not emotionally invested in the interest rate itself.

However, they are very invested in the payment being offered to them. The payment will make or break a deal every time. Give them a payment they feel comfortable with, and the interest rate will not matter very much.

Given that strong statement, there needs to be considerable explanation of the concept. It is true that many customers ask about interest rates. This, in part, is because they have been taught they should ask. The reality is they care only because they have been told they should care. The real emotional involvement is more tied to an affordable payment.

There are a number of ways sales personnel and MLOs for the finance company can successfully mitigate any concerns about interest rates for a potential buyer in search of a home. We will touch on some of these later in the article.

Look At How Term Affects Payment

Term affects interest rates and monthly payment

It is true: The higher the interest rate, the higher the payment for the same term. So, this could appear to be self-defeating. However, such a premise ignores the role term plays in those numbers.

One of the very real impediments is the unrealistic terms that are offered by many of the outside lenders and some of the captive lenders.

In some areas of the country, an older single-family site-built home of 1,200 square feet can be purchased for as little as $75,000, including the land. That, in and of itself, presents a challenge to the 16’x 80’ new home in a community sale. Add to that the credit-worthy buyer is normally offered a 30-year mortgage on the site-built home. This scenario often makes it difficult to compete.

The question that should be asked is: If site-built mortgages can be 30-year mortgages, why can’t manufactured homes chattel loans also be 30-year mortgages? The answer is: They can be. That, of course, creates the question as to why they aren’t, and the answer to that is superstition.

How to think about interest rates

What Does The Data Say?

Superstition is the correct term. Far too many people base their loan underwriting on belief rather than facts. Government regulatory agencies demand written lending policies and credit matrices based on factual information. Yet, many non-depository lenders still make decisions based on beliefs rather than historical data. Worse, many of those beliefs directly contradict real facts and historical data.

There is no provable data that would indicate that longer lending terms on single homes at least 16’x 80’, or multi-section homes less than 10 years old from a reputable manufacturer, affect the overall risk of making the loan. Our historical lending data on this is considerable. In fact, there has been at least one regional lender routinely making 30-year loans for over 20 years without undue non-performance.

That does not mean that every loan should be based on 30-year terms. There are factors that must be considered and balanced.

Following are a few other factors to consider and balance
  • Incorporate credit quality
  • Percentage of down-payment
  • Location and quality of collateral
  • Size of loan

Once the proper underwriting has been done, many of the loans can be considered for longer terms, which opens more opportunities.

As an example, using many current loan terms on a $50,000 loan, at 15 years the payment would be $537.50. At 20 years, the same loan would have a payment of $482.51. At 30 years, the payment would be $438.79. That is almost $100 per month less, which may make the affordability possible without adjusting the interest rate.

Get the latest information on interest rates

A Longer Term Can Keep Potential Buyers in the Market

As long as extending the term does not also increase the risk, longer terms are a valuable solution to the problem of higher interest rates. One of the reasons why the longer terms work is because the borrower often is offered an affordable payment. Given a choice between making a loan with a 43 percent debt-to-income (DTI) at 15 years and making a 20-year loan at 28 percent DTI, if other underwriting factors are right, the 20-year loan will be less risky.

So, the higher interest rates are easier to deal with because the longer term creates a payment the prospective borrower finds desirable. Often it is more desirable than payments being offered on a site-built home, despite the higher interest rates. This, in part, is because the site-built home purchase price includes the land purchase. Also, property tax on a site-built home normally is far higher than on the manufactured home. And because the site-built home finance amount also will include private mortgage insurance for borrowers with lower down payments.

Address Concerns About a Higher Rate

The tools are there to mitigate higher interest rates. But both the retail sales personnel and the MLOs have to develop the attitude that those higher interest rates are nothing to be afraid of. This is true, and can be helpful if they say and do the right things in the sales process. Once a seller learns not to fear differences in interest rates, it becomes easier to plan the sales presentation and responses to questions.

For most prospective customers, the interest rates are of little consequence compared to the payment. If the focus is on the payment, and if the payment is affordable, most borrowers will not care about the rate. For the few that do – those with excellent credit – lower rates remain available through lenders like Triad Financial. The problem of higher rates is almost always in the mind of the sales personnel rather than the borrower, if longer terms are offered.

The higher rates provide incentives to the lender, captive or outside, to make higher-risk loans and lower dollar loans. The industry needs them to continue to sell homes and prosper. Lenders need to reexamine their reasons for shorter terms, and retailers and community owners need to do a better job selecting and training their sales personnel.

EVENTS

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