AGENCY ENFORCEMENT

By any chance does anyone know the appropriate agency that regulate such builders as KB Homes and Shea? These builders provide mortgage financing for the homes they build, so I would like to think that if they're providing financing to consumers, then they would have to be regulated by someone. I would appreciate any input. Thanks.

If you talking about Reg Z, you can find the regulatory bodies in Appendix I:

"Retail, Department Stores, Consumer Finance Companies, All Other Creditors, and All Nonbank Credit Card Issuers (Creditors operating on a local or regional basis should use the address of the FTC Regional Office in which they operate.)

Division of Credit Practices, Bureau of Consumer Protection, Federal Trade Commission, Washington, DC 20580. "

I believe it would also be the FTC in most cases for the other Federal regulations. The FTC almost never initiates an examination - it would have to be triggered by consumer complaints.

Thanks rlcarey. That's sort of what I had figured.

The actual lender may not, in fact, be the builder/developer. Just as auto dealers offer financing, the actual lender is oftentimes a bank or financing arm of the dealer. Business retailers offer financing, but the paper is really HFC or Household or someone else.

Non-bank lenders require a state docket number to offer lending in a state, so each state they lend in they will have a license. It will be hard for you to go after the builder on an issue if he is not actually lending and disbursing the funds. It's doubtful that any lender has the type of liquidity to actually fund the loan, so it's got to be a third party.

Actually, KB Homes has a wholly owned subsidairy - KB Home Morgage Company, so your statement is not always true. Many of these large builders are also in the mortgage business. That way they get more of the pie.