Fixing Housing & Creating Good Jobs – “The Doctor's In”

Celebrity White House Picks Controversial Florida's Ben Carson for HUD Secretary

“Very poor choice! … This revolutionary thought process [that] our U.S. Government should be run by folks that have at least a bit of history leading a mohair governmental agency such [as] HUD. Very disappointing!”

- Titus Dare, Executive Vice-President of Development & Construction, Eagle One Financial

“This was a very smart choice. Dr. Carson has a unique and first-hand perspective having been born and raised in the inner city. His life story, background and accomplishments will allow him to better understand the challenges and needs of HUD and the American people more than most.”

– Congressman Dennis A. Ross (FL-15)

A home was listed a week ago, one of thousands that went on the market.

But that 5 bedroom, 4.5 baths, 6,155 square feet of West Palm Beach golf club community residence is the home of Dr. Ben Carson. It was the signal that the world-famous pediatric neurosurgeon was preparing to make the move to the Washington, D.C. Metro, and start the next chapter of an already storied life.

Much of the wealth for most Americans is found in their home. Home buyers are creating equity for themselves.

By contrast, renters are building value not for themselves, but rather for those who receive their rental housing payments.

Housing is an obvious necessity. Buying a home is one of the most secure paths for millions to lift themselves up from poverty or modest means towards increasing prosperity.

So who runs the massive 8,000 person federal housing agency – and how those finance, housing programs and $49.3 billion dollar annual budget are managed - matters to millions.

The value of all housing – single family, multi-family, and manufactured homes - can rise or fall, based upon the impact of those federal policies.

Celebrity President, Celebrity HUD Secretary

House Minority leader, Nancy Pelosi (D-CA12), lamented Carson being named for the HUD role, saying he is “disturbingly unqualified.” Politico stated, "People for the American Way said he was “dangerously unfit.""

Orlando's R.C. Williams, reported in MHProNews that “Out of the last five or six HUD secretaries, you could really only point to two of them who had direct housing experience,” said Brian Montgomery, HUD assistant secretary under President George W. Bush.

HousingWire reported that Montgomery is one of three top contenders for the number two spot at HUD, the person who historically does much of the day-to-day management, while the secretary of HUD focuses on the big picture and spotlighting challenges.

Speaking about Dr. Carson, Montgomery said. “He’ll be able to elevate the issue in the fact that he’s a household name and has been in the public domain for years.”

So, the rags-to-riches celebrity doctor and the celebrity president - each using their respective fame and federal offices - can focus attention on issues, and thus do surgery on what they believe needs mending in America.

It’s HUGE! HUD…

The Federal Housing Administration (FHA) - which is part of HUD - insures some 1.7 trillion dollars in FHA backed loans on houses, condos and manufactured homes, thus allowing lenders to offer more favorable rates and terms.

FHA lending, as have all housing loans, languished in the past eight years. Yet housing is normally one of the biggest economic drivers of the U.S. economy.

David Stevens, President and CEO of the Mortgage Bankers Association, said “It’s a really bad mix of business sentiment and regulatory overreach that’s keeping this engine from providing what it could to the U.S. economy.”

Stevens was a fundraiser for Hillary Clinton's campaign.

"[Dr. Carson is] coming in with a great opportunity here to help HUD get back on track,” Stevens said. “He clearly has the leadership skills.”

“I think Dr. Carson is an intelligent man – he’s a free thinker, he’s a compassionate person, a quick study obviously and I think that he can do the job,” said Henry Cisneros, former HUD secretary during President Bill Clinton's administration, per Mornings with Maria on FOX Business.

Mel Martinez, who led HUD under President George W. Bush, said, “Did I know everything about HUD the day I walked in? No."

"Was I able to learn? Yes,” Martinez said. “You go to school, you learn a lot, but you also surround yourself with good people."

Stock Market Records, Public Sentiment Rising

Gallup reports that consumer confidence has hit a 9-year high, since Donald Trump’s election.

The Dow, S&P 500, Nasdaq and small-cap market Russell 2000 have all hit various records in the last 3 weeks.

Investors are calling it the Trump Effect, the Trump Bump and the Trump Rally. They point to specific policy reasons why they are now willing to invest more in American businesses.

Indeed, several announcements have already come from NYC's Trump Tower, about jobs being saved or billions in new investments that will create thousands of new jobs here in the U.S.

And the president-elect has not yet taken the oath of office.

Economic growth and all jobs - in various ways - leads singles and households into housing choices.

“Ben Carson has a brilliant mind and is passionate about strengthening communities and families within those communities,” President-elect Donald J. Trump said in a statement. “We have talked at length about my urban renewal agenda and our message of economic revival, very much including our inner cities. Ben shares my optimism about the future of our country and is part of ensuring that this is a Presidency representing all Americans.”

Trump-the-Builder grew up in the housing business, as he reminded the National Association of Homebuilders in Florida in an address during the campaign.

Trump’s family business interests include ties to high-end prefabricated modular homes by famous designers, such as Robbie Antonio at Revolution PreCrafted Homes, as was reported on MHLivingNews.

So the president-elect is familiar with conventional as well as factory-produced homes.

Housing and Policy Support

“I fully support President-elect Trump’s appointment of Dr. Ben Carson as the Secretary of the Department of Housing and Urban Development,” U.S. Rep. Dennis A. Ross (FL-15) told MHProNews. “I look forward to working with Dr. Carson to improve our housing policies and to help families prosper in the coming months and years.”

While all housing lending tightened up after the mortgage meltdown, loans on manufactured homes under $75,000 in value were particularly impacted, even though the industry had virtually zero influence as a cause of the 2008 housing crisis.

Jacksonville, FL based Triad Financial Services CEO, Don Glisson, Jr., welcomed the announcement of Carson for HUD Secretary.

Glisson said they “are hopeful that President-elect Trump and soon-to-be HUD Secretary, Dr. Ben Carson, are committed to sensible regulation for manufactured housing and all home lending.”

Glisson said, “...the past 8 years have brought us regulations that have burdened our company, and increased the cost of lending to our borrowers who can least afford it. From our viewpoint, we cannot see how many of these new rules and regulations are doing anything to protect the borrowers.”

Glisson points to a high degree of satisfaction among their customers, who are carefully approved and properly serviced, because the lender wants to see borrowers succeed.

Some two thousand community banks have closed nationwide during the past 7 years. Those closures tightened access to business loans and all forms of home lending.

The reasons often cited by those lenders for closing were the high costs of regulatory burdens - much like those factors cited by Triad’s president - who’s firm has now celebrated 50 years serving manufactured home buyers, communities, retailers and other lenders.

Because businesses – including housing - are what creates most jobs. So pro-business tax policies - coupled with reduced, common-sense regulations - are good for investors, businesses, professionals, and workers.

Businesses and investors need and desire stability. People do too. Those factors can lead to more home ownership.

Buying more homes leads to more personal wealth, further economic growth, and still more jobs.

No wonder stocks have risen to new highs, and consumer confidence has advanced more rapidly than at any time in many years.

“I feel that I can make a significant contribution, particularly by strengthening communities that are most in need,” Carson said in a statement. “We have much work to do in enhancing every aspect of our nation and ensuring that our nation’s housing needs are met.” ##

By L. A. "Tony" Kovach.

Kovach is an MH Industry veteran, consultant, speaker and the publisher of Lakeland, FL based MHLivingNews and MHProNews, the leading trade publications for manufactured home consumers and manufactured housing industry leaders, investors and public policy professionals who want up-to-date lifestyle and business news.