Deutsche Financial Services (DFS) will leave the manufactured home dealer inventory finance business later this year, according to the chairman of Champion Enterprises Inc., a major manufactured home builder and retailer.
DFS, which announced plans earlier this week to sell its RV dealer inventory finance business to GE Capital, has a $520 million manufactured home dealer floorplan portfolio that will be liquidated, according to Walter Young, Champion’s chairman, president and CEO.
DFS will not approve manufactured home dealer floorplan loans after Oct. 31 or fund such loans after Nov. 15, Young reported today (Sept. 20).
“Although the impact of Deutsche exiting the industry is not known, the exit of Conseco Finance earlier this year has been orderly, with more financing coming from not only the national lenders, but also local and regional banks,” Young said. “At the time of Conseco’s exit, they had about $770 million in floorplan loans outstanding. Regardless, the industry sure didn’t need this additional challenge.”
Fleetwood Enterprises Inc. is a major Champion competitor in manufactured home building and retailing. Fleetwood’s manufactured home retail operation has lost money the last few years, but Young said Champion’s 117 manufactured home retail locations “should be at break-even in the third quarter.”
In addition to Fleetwood, there are other RV manufacturers that are significant manufactured home building operations including Skyline Corp., Kit Manufacturing Co. and Fairmont Homes Inc., sister company of Gulf Stream Coach Inc.
Start-up towable RV builder Pilgrim International Inc. also is the sister company of manufactured home builder Hart Housing Group Inc.