Breaking News
  • Wells Fargo reaches $110 million class action settlement over fake accounts

    The fallout from Wells Fargo's fake account fiasco is far from over, as the bank announced late Tuesday that it reached a $110 million settlement in a class action lawsuit brought on behalf of the bank’s customers who had a fake account opened in their name. Click the headline to read more about the settlement.

Lending

Homebuilders to weigh in on mixed 2Q14 earnings

Projections remain positive so far

construction of new home

[UPDATE 1: An earlier version of this article said D.R. Horton will post earnings Wednesday.]

As more top banks report muted mortgage results in their second-quarter earnings, homebuilders are about to weigh in on the discussion, recording potentially strong, steady or weak growth.

First up was Homebuilder Lennar (LEN), which reported its second-quarter earnings on June 26, posting a revenue of $1.82 billion, up from $1.43 billion a year earlier, beating analyst expectations of $1.68 billion. 

However, due to a drought in first-time homebuyers, Lennar is considering expanding into building single-family homes for rent.

Lennar CEO Stuart Miller said on the homebuilder’s quarterly conference call that he does not anticipate mortgage-qualification standards to ease soon enough to bring first-time homebuyers off the sidelines.

Meanwhile, Barclays commented on Pulte Group's (PHM) upcoming second-quarter earnings and said, "The gross margin outlook in FY14 remains positive due to the increase in use of its commonly managed plans, as well as a reduction of capitalized interest. Barclays maintained its $0.29 estimate for 2Q14, compared to the street consensus of $0.25.

Up next, Pulte Group and D.R. Horton (DHI) will post earnings Thursday morning.

Reprints

Services Guide

Comments powered by Disqus