Industry News

Home builder plans trouble analysts

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Big builders warming up to land purchases Despite the housing slump, major builders are revisiting land purchases and development, according to a Reuters report. Companies including Lennar Corp., KB Home, Hovnanian Enterprises Inc. and Meritage Homes Corp. are buying and developing land "or at least talking about it," according to the article, and that troubles some analysts. KB expects to spend $300 million on land and $400 million on land development this year, and Lennar spent $162 million on new land in the second quarter, Reuters reports.Cramer: Expect more banks, builders to fail Former hedge-fund-manager-turned-pundit Jim Cramer says the future of mortgage giants Fannie Mae and Freddie Mac may hinge on who wins the November elections, and that financial markets won't bottom out "until all the banks that have to fail do so and GM files bankruptcy along with Ford."Fannie and Freddie might be able to recoup heavy losses if they survive two more years, ...