How wise is it to invest in residential construction right now? The answer: it depends
December 1, 2014
The HW 30 represents the top public companies that make up the core of the nation’s housing economy. Among them are some of the country’s biggest builders, the largest among them D.R. Horton, though Toll Brothers is perhaps the one to watch now. Is it time to invest in home construction? Here’s our take.
Not every builder is on board with federal regulators’ move this week to open the credit box and ease mortgage-qualification standards. While other builders like PulteGroup and Ryland Group welcome the new rules, Luxury homebuilder Toll Brothers finds the rule dumb.
The CFPB left the grace period open-ended and most in the industry interpreted that to mean that it will last throughout the rest of 2015, at least. Unfortunately, as welcome as that grace period is, TRID remains a costly and complicated fix that has enormous implications for the whole industry..
“Bad letters damage the brand,” Katherine Porter says. “There’s a contagion effect of this. I think bad letters are unjust. They disproportionately harm the borrowers we need to help the most.” Read More
The answer may be found somewhere between commandeering the entire process and “throwing it over the fence.” For lenders, paying more attention to the source of the data and information used in finalizing settlement (title searching, valuation and the like) could hold the key. This means data reporting collected in a more robust, accurate and verifiable fashion. Read More