Interesting happenings and concerns in loans to homebuilders:
This week Wells Fargo announced it is forming a homebuilder banking group to serve clients on the east coast, Texas and the Midwest. The team will offer “a comprehensive suite of financial solutions,” according to a release, including project and corporate financing facilities, and a referral network to treasury management, insurance, mortgage and capital markets products.
“The biggest issue in recovering markets is that lot inventory has equalized, and the banks, because of the Feds, won’t lend money for land development. This will make all recovering markets ripe for the picking by publicly held companies who are not in need of bank financing,” McGuinn said. “This ultimately could be the death nail in the coffin of the small and family builders, who although they have money and credit, won’t be able to compete.”
Read the whole article by Diana Olick, CNBC Real Estate Reporter: US Home Builders Begin to See Credit Thaw – US Business News – CNBC.