Last week Merrill Lynch released its monthly Delinquency & Loss Trigger Report, predicting that the manufactured housing sector is heading for a rebound as it continues to reduce excess capacity. Among the ABS real estate issuers covered are Conseco/Green Tree Finance, Oakwood Mortgage Investors Inc., and Vanderbilt Mortgage Finance.
The report concludes that the performance of the manufactured housing (MH) and home-equity (HEQ) collateral did not materially change since October. Demonstrating MH's decline in excess capacity, the Manufactured Housing Institute reported that 144,500 MH homes have been shipped through September 2001 - a 29% decline from 2000. Also, numerous market players have recently announced a further reduction of production and/or retail capacity.