Results tagged “homebuilding” from DesMoinesIst

The Des Moines Business Record has a well-researched review of the collapse of Regency Homes. The whole affair is unfortunate, since it leaves people unemployed, contractors unpaid, and prospective homeowners in dire straits. The story rather strongly suggests that Regency simply overextended itself, and once Wells Fargo changed some of its lending terms, the overreach caused the company to topple. Bad loans hit Wells Fargo hard in October and again in January following the previous quarters' reports. The bank is still trying to contain the bad news, though it had started cutting back on higher-risk loans more than a year ago.

The company, which has built a bunch of developments throughout the Des Moines area and in other parts of the state, has abruptly closed up shop after running out of financing. Regency's business and construction practices inspire some very strong opinions, but there's no escaping the fact that the company has been significant to the homebuilding industry in Iowa. It's a very big event for Iowa Realty, which sells most of Regency's new homes. On a related note, lots of Iowa homeowners are now looking for earthquake insurance. The quality of homebuilding has an obvious effect on the risk to life and limb posed by earthquakes.