High Cost Loans Soak Homebuyers of Pulte Homes

Pulte was the #3 builder in 2006, raking in $14,274,000,000 in revenue and 41,487 closings in 2006. However, their huge profits were based on an unsustainable business model that undermined the industry by pushing homebuyers into homes and mortgages they couldn’t afford. Pulte’s in-house mortgage provider increased its sale of risky and unaffordable mortgages. While Pulte increased sales of their prime loans just 1% from 2005 to 2006, in the same timeframe, they increased their subprime loans 59.33%. Pulte’s total high-cost loans between 2005 and 2006 increased 51.91%--from 6.82% of their total loans up to 10.36%.