News
D.R. Horton Posts Record Loss
Fort Worth, Texas–D.R. Horton Inc.–the largest U.S. homebuilder–announced a record loss Tuesday that included an $834.1 million land and inventory writedown.The $1.31 billion fiscal second-quarter net loss was nearly seven times more than analysts’ estimates, according to Bloomberg.Revenue fell 38 percent to $1.62 billion. Texas, Oklahoma, Mississippi and Louisiana provided the most quarterly revenue. Fort Worth, Texas-based D.R. Horton’s cancellation rate was 33 percent; last year, it was 32 percent.The company’s backlog of homes dropped 47 percent to 8,947; the backlog’s value fell 57 percent to $2.1 billion.
U.S. Banks Tightening Lending Requirements in 2008
Washington, D.C.–In the early months of 2008, U.S. banks greatly restricted their lending practices, according to a Federal Reserve report released Monday. The amount of banks with tighter lending requirements for corporate, commercial real estate, home mortgage, credit card and other consumer loans was “close to or above historical highs for nearly all loan categories,” the senior loan officer survey said.The survey showed that banks are continuing to restrict credit–especially in regard to consumer and commercial/industrial loans, the Financial Times reports. The number of banks restricting credit card and other consumer loan terms hit a new high. Student loan lending…
Pinnacle Selects Conservice to Provide Utility Billing Services
By Anuradha Kher, Online News EditorSeattle–Pinnacle has selected Conservice, a provider of utility management and billing for the multifamily market, as its preferred national provider of utility services across all business segments. Pinnacle, a third-party fee management company, completed an extensive evaluation of companies in the utility billing market and analyzed over a dozen criteria for these companies including ease of use, technological innovations, customer service, regulatory expertise and data integration capabilities. Pinnacle’s five-year agreement with Conservice includes data integration services, utility billing to residents, resident access to Pinnacle’s web-portal, installation and maintenance of utility submeters and additional programs and services…
Smith & Fong Co. Introduces World’s First Range of FSC-Certified Bamboo Plywood and Flooring
Smith & Fong Co.’s Plyboo architectural plywood and flooring will be the world’s first range of FSC (Forest Stewardship Council)-certified bamboo plywood and flooring. Made from 100 percent FSC materials, the products will be designated as FSC Pure. Durable and easy to install, Plyboo flooring, which is made from laminated bamboo, is available in either flat or edge-grain, pre-finished or unfinished. The low-resin, open-grained flooring comes in two colors: amber and natural.Smith & Fong Co. will offer a range of trim moldings whose average hardness is 1,500 lbf. The moldings include stair-nosing, thresholds, reducers, base-shoes and baseboards. Panel sizes are…
Abu Dhabi Prepares for Solar/Zero Carbon City
By Maria Siakavellas, Contributing EditorAbu Dhabi, UAE–In the 40 years since the inception of London-based architectural firm Foster + Partners, little has changed in terms of the organization’s guiding philosophy. From day one, the firm has operated on the belief that the quality of people’s surroundings has a direct impact on the quality of their lives, be it at work, at home or at play.What’s more, its designs have always accounted for the needs—both physical and spiritual—of people, and painstakingly considered a structure’s physical context within a location’s culture, climate and environment. Though it has worked under the same philosophy since…
Kettler Execs Share Management Insights
By Teresa O’Dea Hein, Managing EditorMcLean, Va.–Kettler, a developer, builder and property manager, recently took home several Pillars of the Industry awards including one for Property Management Company of the Year, sponsored by Time Warner Cable, and one for Property Manager of the Year–Site for Michelle Priesner (who earned top in-house honors for property management in 2006). How does this company achieve its winning results? MHN spoke with both Cindy Clare, president of Kettler Management, based in McLean, Va., and Michelle Priesner, ARM, property manager at two Pentagon City, Va. high-rise communities, to get their insights into the multi-faceted and…
Multifamily Originations Hit Record in 2007 Despite Mid-year Slowdown
By Anuradha Kher, Online News EditorWashington, D.C.–The commercial/multifamily originations market grew 19 percent in 2007, with mortgage bankers closing $507.7 billion in commercial/multifamily loans, according the Mortgage Bankers Association’s 2007 Commercial Real Estate/Multifamily Finance: Annual Origination Volume Summation.“Despite the slowdown, 2007 saw a record high in originations because during the first half of 2007, originations were going strong,” Jamie Woodwell (pictured), senior director of commercial/multifamily research at MBA, tells MHN. “The numbers were 38 percent ahead of 2006.”The credit crunch had a significant impact on conduit financing, but GSEs and multifamily lending was strong, said Woodwell. He said the 2007…
U.S. Service Sector’s April Expansion Seen as Positive Economic Sign
Washington, D.C.–After three months in a row of contraction, the U.S. service sector grew last month, the Institute for Supply Management said Monday. The Institute for Supply Management’s non-manufacturing composite index grew to 52 from 49.6. A reading over 50 indicates expansion.The service sector’s growth may be an indication that increasing costs and reduced demand are failing to cripple the economy, according to the Financial Times.Because services companies comprise roughly 70 percent of the economy, their capacity to weather economic troubles is key to the U.S. avoiding a recession.
Mortgage Industry Investigation Steps Up Pace
Washington, D.C.–The federal investigation of the mortgage industry has increased in recent weeks, the New York Times reported Monday.A task force created by the Federal Bureau of Investigation and the Internal Revenue Service’s criminal division–which includes federal prosecutors in New York, Los Angeles, Philadelphia, Dallas and Atlanta–is studying mortgages that were issued with minimal or no proof of earnings or assets, according to an anonymous government source.Formed in January, the task force has increased its pace. The current investigation is larger in scope than the F.B.I. mortgage lender investigation that is also underway, the Times said.The new group is examining…
Higher Costs Proposed for Rent-Stabilized New York City Residents
New York–New York landlords want to raise rents for the city’s 1 million rent-stabilized tenants to offset higher energy and other costs, the New York Daily News reports.Landlords say they need a 10 percent minimum rent increase to fund higher heating oil, water and sewer bills and the general cost of maintaining older buildings. Roughly 25,000 landlords rent stabilized apartments in New York.The rent spike would mean an average increase of $78.20 for stabilized apartments. Renter advocates are against the rise because they feel it could force the lowest-income renters out of their units.The Rent Guidelines Board is scheduled to…