Rick Martinez

In a recent release, KBRA provides an insightful review of manufactured home communities (MHCs), highlighting their affordability, performance trends, and credit characteristics. This research comes at a time when MHCs are increasingly gaining attention as a viable affordable housing option, particularly as families face escalating single-family home prices and rising multifamily rents over multiple years. MHCs operate primarily as a land lease business, renting home pads to owners of prefabricated homes. Due to higher demand, MHCs have seen rising rents and occupancies. Despite being a small segment of the U.S. housing market, accounting for 6.4% according to the Census Bureau, MHCs are crucial. The Manufactured Housing Institute reports over 43,000 MHCs in the U.S., with almost 4.3 million homesites. Key Takeaways: Affordability Comparison: The Census Bureau indicates the average price for a manufactured home is $121,300, significantly lower than the $487,300 average price for a single-family home. Cost of Ownership: The average monthly cost to own a manufactured home is $1,317, compared to $2,188 for a single-family home, demonstrating substantial savings for homeowners. Zoning Regulations: A major barrier to MHC growth is local zoning regulations, which often limit the development and expansion of these communities. Increasing Demand: Demand for MHCs is rising, as evidenced by a 7.3% year-over-year (YoY) growth rate in average monthly MHC rents in 2023, the largest annual increase in the past two decades. In contrast, multifamily rents saw a 1.6% YoY decline in 2023, following two years of 23% YoY gains. Occupancy Rates: Average MHC occupancy for 2023 was 94.7%, comparable to multifamily occupancy rates, which stood at 94.5%. Securitization Trends: Between 2017 and 2023, $10.1 billion worth of MHCs were securitized, encompassing 1,384 MHC properties through Freddie Mac and conduit transactions. Credit Performance: The strong credit performance of MHCs is highlighted by a low aggregate Freddie Mac and conduit MHC delinquency rate of 0.32%, compared to 1.35% for multifamily properties. Historical Default Rates: Over a longer period, MHC loans have shown favorable credit performance, with a cumulative default rate of 8.1%, significantly lower than the 13.8% default rate for multifamily loans, as per KBRA’s November 2021 Conduit CMBS Default and Loss Study. As families continue to seek affordable housing options amidst rising costs in other segments, MHCs represent a critical component of the housing market. Their affordability, strong credit performance, and increasing demand underscore the importance of these communities in addressing the nation’s housing needs. #ManufacturedHousing #AffordableHousing #RealEstate #HousingMarket #MHC #HomeOwnership #RealEstateTrends #HousingAffordability #PropertyInvestment #CommercialRealEstate #KBRA https://lnkd.in/er4HJtY4

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Now more than ever, it is essential to have an accurate view of your CECL reserves. Looking more closely at the recent CU Times report on 1Q24 credit union earnings, what stands out is the volatility in provisions for loan losses, which have a major impact on the bottom line. You don’t need to be a top-10 credit union for CECL reserves to have a dramatic effect on one’s earnings performance. With originations down and more credit unions turning into participation buyers, be sure to have a trusted CECL analytics solution in place to set aside credit loss reserves that most accurately reflect the profile of your participation portfolio. You can learn more about LoanStreet’s solution here. https://bit.ly/3WwtyJr Read the CU Times report: https://bit.ly/3WwMSpT

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For the team at Patelco Credit Union, credit is at the core of general wellness. And underserved communities have been impacted most by a lack of credit access. Yazel Pardo, VP, Head of Credit Risk at Patelco Credit Union, discusses how mission alignment, model risk management and model performance made Upstart stand out as an AI lending partner. "With all the technology and data available, it seems pretty archaic to use a [credit] score that was developed over 25 years ago with rudimentary mathematical techniques," says Pardo. Check out our latest testimonial to hear how Patelco is acquiring members, lending deeper into the credit spectrum and deploying capital to meet their returns and expected losses with Upstart.

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Under the Federal Credit Union Act, promoting financial literacy is one of the core missions of credit unions. Visit https://lnkd.in/eruaKnui find a credit union in your area and ask about financial literacy resources and programs available to help build your financial capability! #FinancialCapabilityMonth #FinancialLiteracy #finance #CreditUnions #NCUA #MyCreditUnion #YourMoneyMatters

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Under the Federal Credit Union Act, promoting financial literacy is one of the core missions of credit unions. Visit https://lnkd.in/eruaKnui find a credit union in your area and ask about financial literacy resources and programs available to help build your financial capability! #FinancialCapabilityMonth #FinancialLiteracy #finance #CreditUnions #NCUA #MyCreditUnion #YourMoneyMatters

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We feel the same, Christopher Williston VI, CAE. Kudos to The Baker Group and IBAT. Very comforting to see such strong passion, leadership and commitment to the future of our vital community banks. #communitybanking #regionalbanking #IBAT #visibility #strategicvisibility #communitybank #risk #finance #fintech #opportunities #riskmanagement #ERM #ECRM #engagement #banking #CFO #enterpriseriskmanagement #CECL #credit #creditrisk #creditriskmanagement #CRO #compliancerisk #compliance 

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How can we promote staff development in credit unions? This recent The article shares the benefits  of offering professional development opportunities to credit union staff, which is spot-on, and here are a few thoughts that resonated with me: 1. Attracting and Retaining Talent: Recruitment and retention are top challenges, and professional development can be a game-changer. Offering growth opportunities sets credit unions apart and keeps motivated employees engaged and loyal. 2. Future-Proofing Through Learning: The financial landscape is evolving rapidly with technological advancements. Bridging the skills gap through professional development ensures our teams stay competent, confident, and aligned with member expectations. 3. Culture and Succession Planning: Professional development isn't just about job performance—it's about nurturing a strong credit union culture and preparing future leaders. Smooth transitions and minimal disruptions are key to sustained success. Encouraging knowledge sharing, implementing mentorship programs, and embracing innovative learning approaches are steps in the right direction. Let's invest in our people today for a brighter, more resilient credit union tomorrow. #CreditUnionInsights #CreditUnionLeadership #Leadership

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OCMBC and its DBAs are #1 in Non-QM Originations in CA! According to the Forecasa Non-QM Pulse Report 2024. #ocmbc #wholesalelending Intended for use by real estate and lending professionals only and not for distribution to consumers.

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You’ve probably heard of Individual Retirement Accounts (IRAs), which are open to almost everyone and allow you to save for retirement. But you might not know about their credit union version, IRA Share Certificates. Read the blog below to learn about them and their benefits. #IRA #NevadaCreditUnion #LiveGreater

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Don't miss tomorrow's discussion on how fintech solutions are breaking down barriers to lending for underserved communities, and how your credit union can create opportunities to continue to serve LMI (Low to Moderate Income) members. #CANVLeagues #CaliforniaCreditUnions #NevadaCreditUnions

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May is Small Business Month, and nonprofits like Local Initiatives Support Corporation (LISC) Phoenix play a crucial role in fostering entrepreneurship and economic growth. Pacific Premier Bank is a proud supporter of LISC Phoenix’s Empowerment Initiative, designed to support businesses with five or fewer employees in low-income communities. The financial support of this initiative aims to create a lasting impact on local economic development, job creation, and the quality of early childhood education services. Together, we can ensure that small businesses thrive and continue to enrich our communities. #smallbusiness #smallbusinessmonth

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Need an affordable, easy way to #Increase #SaffEfficiency? #CooperativeCenterFCU #IncreasedMemberSatisfaction and #ReducedOvertime by deploying #TellerCashRecyclers from MVP Financial Equipment #Cash #CashRecyclers #CashManagement #CIMA #IncreaseEfficiency #SaveMoney #SpeedUpTransactions #FreeUpStaff #StaffEfficiency #FinancialEquipment #MVPFinancial

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An adequate level of liquidity depends on a credit union’s ability to efficiently meet both expected and unexpected cash flows and collateral needs without adversely affecting the credit union’s daily operations or financial condition. Visit the NCUA's Liquidity Risk Resources at https://lnkd.in/gTF2F9Km to learn more. #liquidity #creditunions #finance #money

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Unexpected expenses? No problem. 🛡️ With Focus Federal Credit Union's savings accounts, you can build a financial safety net for peace of mind. Start small, think big – every bit adds up to a more secure future. #EmergencyFund #SaveWithFocusFCU

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Attracting deposits is difficult, and can be especially so for some CDFIs and MDIs. Two trade associations representing CDFIs and MDIs, the Community Development Bankers Association and the National Bankers Association, launched the Advancing Communities Together Deposit Program this month with $35 million in seed-money deposits from four financial firms. Get the details>> https://ow.ly/XiVS50SnciB #ACTDepositProgram

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Is your credit union implementing strategies that truly put your members' needs at the center? 🤔 Velera's 2024 CU Growth Outlook research study, completed in partnership with EY and Filene Research Institute, examines how CU member behaviors, preferences and pain points have evolved. Discover how starting from within — through talent, culture alignment and operations — leads to sustainable growth. ➡️ Download the white paper: https://bit.ly/3ytfC9l #WeAreVelera #CUGrowthOutlook #CreditUnions

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We're helping to create lasting impact for people and the planet. Check out what U.S. Bancorp Impact Finance has accomplished to help communities thrive. #U.S. Bank #USBancorpImpactFinance #AffordableHousing #LIHTC #TaxCredits #NMTC #RenewableEnergy

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PeoplesBank and Cornerstone Bank have announced an agreement to combine their holding companies. While the merger agreement will unify holding companies, both banks will continue operating under separate names and brands for the foreseeable future.   What does this mean for our customers? Nothing, really. There will be no changes to accounts, products, hours, locations….anything at all. No changes.   What does this mean for our associates? More opportunities for growth and advancement.   What does this mean for our communities? More support, more volunteerism, and best of all, more Real. Simple. Banking.   For more information https://lnkd.in/e_ib7JVu   Pictured: Todd Tallman, CEO, Cornerstone, Tom Senecal, CEO, PeoplesBank #BankAtPeoples

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