Builders say whatever gets them money

From: Cindy Schnackel 
Sent: Monday, April 28, 2008 12:34 AM
To: 'robert.evatt@tulsaworld.com'
Subject: Analyzing the slump in housing
 
Dear Mr. Evatt,
 
RE: Analyzing the slump in housing,
http://www.tulsaworld.com/business/article.aspx?articleID=20080427_46_E1_spancl443098
 
I don't really think the NAHB is being "honest" when they say housing might not
recover until 2010. I think they're talking out the side of their mouths that
wants Congress to give them the multi-billion dollar bailout they're close to
getting right now, the misnamed 'Foreclosure Prevention Act.'  This bill,
touted as being for homeowners, is mostly for banks and builders. 
 
Out the other side of their mouths, the home building associations are
paying for "buy now" campaigns, telling consumers that we're near the bottom and
it's a buyers market, etc.
 
This industry was part of the artificially inflated housing bubble in the first
place.  Many builders have in-house, or preferred, lenders, that were pushing
toxic loans to people who could not afford them.  Certainly no one in the
industry can legitimately claim professionals were 'ignorant' of the
consequences of making bad loans.
 
There was no incentive to make sure the loans were good.  They were quickly
resold as investments.  Builders/Lenders pressured appraisers to meet the
number, and people are still being told they would qualify for more house than
they could possibly pay for.  I have not seen an online mortgage calculator yet
that was realistic.  This industry needs cleaning up and some need to go to
jail. Some smaller, less well connected builders and others HAVE, and some big
ones are under investigation by HUD, the FBI, SEC, etc.  Of course, those that
have the wherewithal will probably pay a fine and admit no wrong-doing, as they
already have with HUD for violating lending laws.
 
Consumers, consumer org's, and others, were warning of this end result years
ago.  No one in a position to stop it did much if anything.  Now that there's
damage to the economy, the builders are using all their money and lobbying
influence in Washington to get a bailout for themselves, at tax payers'
expense. 
 
Honesty?  I don't think so!
 
Cindy Schnackel National Secretary, Homeowners Against Deficient Dwellings
http://www.hadd.com