pcba/SENTRY

Archive for November, 2008

FHBA Takes Action

Posted by pcbasentry on November 26, 2008

The Florida Home Builders Association called a news conference, after meeting with Chief Financial Officer Alex Sink, to discuss banking practices it said jeopardize thousands of jobs. What follows is a representative sampling of coverage from around the State. Each headline is a live link that will take you to the complete article. After reading these, take time to comment and tell us your reactions to these stories.

Builders Association asks Sink for help
(Florida Capital News © 11/25/2008)

Leaders of Florida’s building industry Monday urged “a timeout” on banks
calling in construction loans. The Florida Home Builders Association called
a news conference, after meeting with Chief Financial Officer Alex Sink, to
discuss banking practices it said jeopardize thousands of jobs. “We’re not
asking for a bailout, we’re asking for a timeout,” said Chuck Fowke, a Valrico
contractor, “a time…

Builders: Bailout backfires on us

(Orlando Sentinel © 11/25/2008)
Florida’s home builders are crying foul over the way lending institutions are using
funds from the $700 billion bailout fund that Congress and President George W. Bush
approved in October. Home builders complained Monday that they have been labeled
“toxic” by lenders, while funds the federal government intended to pump into banks to
unfreeze credit markets aren’t being passed along to the slu…

Struggling Home Builders Say Banks Hoard Bailout

(Tampa Tribune © 11/25/2008)
TALLAHASSEE – The record profit Florida’s home builders made during the boom
years has given way to massive problems with cash flow and credit that builders
blamed Monday on banks hoarding billions in federal bailout dollars. The banks aren’t
accepting the blame, pointing instead to a glutted housing market that makes
construction anything but a safe investment right now. In October, the build…

Builders Hope Someone Will Lend Them a Hand

(Charlotte Sun-Herald, Sun Newspapers © 11/25/2008)
Lending problems have hit Florida’s building industry hard. By NEIL HUGHES
Staff Writer In terms of the attention the Florida Home Builders Association
attracted, Monday’s press conference was a success. But how much relief will
come for Florida’s builders in the midst of a nationwide crisis remains to be seen.
“I think we got the word out,” Englewood-based builder Earl Snyder…

Home Builders Hammered by Tight Banking Practices

(Lakeland Ledger © 11/25/2008)
By BILL KACZOR THE ASSOCIATED PRESS Published: Monday, November 24, 2008 at 12:01 a.m.
Last Modified: Tuesday, November 25, 2008 at 3:20 a.m. TALLAHASSEE |
Home builders are being driven to ruin by “extreme” banking practices adopted in response
to the nation’s financial meltdown, including calling in good loans, Florida builders said Monday.

Builders: Bailout backfires on us
(Orlando Sentinel © 11/25/2008)
Florida’s home builders are crying foul over the way lending institutions are using funds
from the $700 billion bailout fund that Congress and President George W. Bush approved
in October. Home builders complained Monday that they have been labeled “toxic” by
lenders, while funds the federal government intended to pump into banks to unfreeze
credit markets aren’t being passed along to the slu…

NE Fla. builders look for Congressional help
(Jacksonville Business Journal © 11/26/2008)
Members of Northeast Florida Home Builders Association attended a meeting with the
U.S. Senator who chairs the banking, housing and urban affairs committee to call
for a moratorium on banks calling in construction financing. NEFBA President Mark
Downing, Vice President Glenn Layton, Past President Bryan Lendry and Executive
Director Daniel Davis, along with members of the Florida Association of…

Builders: Banks ruining business

(St. Augustine Record © 11/26/2008)
TALLAHASSEE — Home builders are being driven to ruin by “extreme” banking practices
adopted in response to the nation’s financial meltdown, including calling in good loans,
Florida builders said Monday. Lenders are also hoarding federal bailout money while
dissolving lines of credit and many times are simply eliminating construction financing,
the builders say. While Florida has been particul…

Home Builders Hammer FDIC
(The Wall Street Journal © 11/26/2008)
Home builders from Florida to Texas are railing against the Federal Deposit Insurance
Corp., saying the agency is cutting off construction financing from seized banks and
demanding early repayment of current loans. The FDIC, which has become a leading
advocate for modifying mortgages of financially strapped homeowners, isn’t extending
that same tolerance to the housing industry, the builders said…

With Recent Home-Builder Rally, Hope Trickles In for Researchers

(The Wall Street Journal © 11/26/2008)
Every few months, a gaggle of investors collectively ask, once again, if now is the time
to buy home-building stocks. Since the sector peaked in early 2006, those with this
inclination have been served up disappointment, time and again. Nevertheless, this is
a hard habit to break, as the home builders have put together a multiday rally again,
with Tuesday’s gains built on news of the Federal Rese…

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Financial Relief Without Gov’t Bailout!

Posted by pcbasentry on November 25, 2008

By modification of a simple accounting rule, the government could give relief to banks and small business and not cost the government one dime of bailout money. Mark to Market, is an accounting rule that requires banks to re-evaluate asset collateral to todays market value. For example, a small business has a project, building, or business valued two years ago at $1,000,000 and the bank agreed to a 70% loan to value. That means the borrower took out a loan for $700,000 and put up $300,000 in equity. Although business is slow and perhaps the borrower has laid off folks, but the doors are open and the loan is not delinquent. Now comes the banks appraiser and says the business or building is now worth $800,000. Based on the 70% loan to value rule, the borrower is required to come up with another $140,000 cash! To make matters worse, some banks are not only requiring the additional equity, they are telling the small business borrower, we are reducing or eliminating your business line of credit. So what do you think is going to happen….a performing loan becomes a non-performing loan, the business person lays off the rest of the staff and closes the door!
This is preventable, just tell the regulators to get their foot off the necks of the banks and tell the banks to get thier foot off the necks of the borrowers and postpone enforcement of Mark to Market.

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Welcome to Our Blog

Posted by pcbasentry on November 13, 2008

Members, we at the PCBA have created our own blog, the pcba/SENTRY, for member to member interaction on anything that you feel is important to our Industry. I certainly hope that it will aid you in your business and our construction world here in Polk County.

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