Tex., Tenn. Makers Of 'Manufactured Homes' May Set Up A Finance Company

Two makers of "manufactured homes," Clayton Homes Inc. of Knoxville, Tenn., and American Homestar of Webster, Tex., are holding preliminary talks on forming a mortgage company for such homes, Clayton said.

The new company would be managed by current and former Clayton Homes personnel.

American Homestar produces manufactured homes - essentially large mobile homes meant to stay in one place - in the Dallas-Fort Worth area, and retails them itself as well as through independents. It also provides insurance services. Its shares are traded on the Nasdaq market.

Clayton also makes and retails such homes and provides insurance services. In addition, it provides financing and owns communities of manufactured homes. Its shares are listed on the New York Stock Exchange.

Most of the large national homebuilders have their own mortgage companies, but manufactured housing is a specialty area. Green Tree Financial Corp., St. Paul, Minn., has dominated the niche in recent years.

Green Tree, meanwhile, also is expanding into new territory. Earlier this summer, Green Tree said it was diversifying and would offer additional products, including home equity loans and revolving credit.

The company said Bruce Crittenden had been hired to lead the expansion. Previously, he was a managing director of Household Finance Corp., Prospect Heights, Ill., where he managed a 462-branch system and a $9.5 billion portfolio.

"He is skilled at anticipating competitive advantages in a national marketplace, starting new ventures, and generating solid operating results," said Lawrence M. Coss, chairman and chief executive.

In addition to financing mobile homes, Green Tree is a big home- improvement lender, with 80 offices nationwide. The company has a portfolio of about $11.3 billion in loans.

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