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Saturday, Feb. 14, 2009 | Ex Barratt American employee here … I have sold new homes for several home builders, including Barratt American in Carlsbad, for approximately 15 years. I am responding to the article that I read about Mick Pattinson, president of Barratt American Homes.
It is disheartening for me to read more negative press about home builders, including Mick Pattinson, who helped to fuel our economy with jobs and got shut down by the banks that funded the building. Small and large home builders across the United States are suffering tremendously, due to Banks unscrupulous lending practices, and “shut downs” of building operations nationwide.
Some of these same banks that funded many large building projects, also generated bogus loans to buyers that buyers could not afford. These banks profited largely in their game of “monopoly” while capturing profit on the building side of lending, and also generating financing for purchases to consumers. The new home market was robust and healthy, until buyers who should not have been buying homes in the first place, started going delinquent on their mortgages. Who is to blame? The banks and our government for allowing near ZERO regulation on lending practices.
A couple of large Builders who are in process of shutting down or shut down operations: Kimball Hills Homes, a privately owned nationwide Home Builder, who employed thousands of people nationwide, currently bankrupt, shut down; Woodside Homes, another local California and multi state builder, in bankruptcy proceedings.
Who are currently unemployed and losing their homes? Here’s the list: Grading workers, concrete workers, framing workers, plumbers, electricians, architects, office personnel, planners, inspectors, sales people, installers, big vendors, and the list goes on and on. Believe me when I tell you that people who know nothing about the inner workings of the home building industry, will be completely surprised to see what other moderately sized and large home building operations will continue to be shut down or going into bankruptcy this year.
What Builders will be left standing as banks are allowed to continue their unscrupulous practices? No one! For the record: Lennar Homes, a major force in San Diego and Inland Empire, is in continuous process of “moth balling” or shutting down many of their home building projects, leaving more and more workers unemployed and collecting state unemployment.
In the big picture, speaking as a person who has first hand experience in the housing crash, banks are primarily to blame for this mess. It is a rather sad situation, when I see the “big shots,” the banks, who monopolized on the housing boom, receiving “bail out” money. Not a single penny is being delegated to builders. If builders received some assistance, imagine how many people would still have jobs and be able to pay their mortgages?