Ryland Adopts LIUNA Mortgage Risk Proposal

Ryland Homes has agreed to implement a substantial portion of a shareholder proposal by a LIUNA pension fund requiring better disclosure of the homebuilder's mortgage risk. LIUNA -- the Laborers' International Union of North America -- said it filed the proposal as part of an initiative to help restore confidence in the housing industry. The Ryland proposal, filed by the Indiana State District Council of Laborers and HOD Carriers Pension Fund, sought regular reporting of the types of mortgages originated so investors can identify the level of exposure to prime, subprime, and alternative-A loans. The proposal also sought reporting on sales of those mortgages, including identification of buyers and terms. "We applaud Ryland for taking this action and call upon other homebuilders and mortgage originators to enact the provisions of our proposal," LIUNA general president Terence M. O'Sullivan said. "We believe restoring confidence to the industry must be multipronged and include responsible shareholder proposals, legislative action, and self-regulation by homebuilders, lenders, and credit rating agencies." LIUNA can be found online at http://www.liuna.org.