WARRANTY WEEK - The Newsletter for Warranty Management Professionals
Last week, in an article titled "Bonfire of the Homebuilders," Business Week magazine announced the end of the housing boom and the beginning of the cleanup. While sales are declining, warranty accruals are declining even faster. Is it because of warranty cost cutting? Could it be better quality construction? Or are they simply putting less aside and hoping that nobody notices? Also, a letter to the editor about compliance with state laws on service contracts...Builders have reacted predictably to the once-skyrocketing price of homes by building too many. Lenders, it seems, have helped buyers to exaggerate their incomes so they could qualify for mortgages they cannot afford. Now some of those new homes are empty, either because nobody bought them or the buyers foreclosed. So what does this have to do with warranty? Read more...