Trouble builds for local developers
Housing, credit crises Drives one builder out of business as industry struggles

Comments Comment on this article81

BY RICHARD MIZE
Published: October 14, 2008

Dreary home sales and the credit freeze have toppled one prominent Oklahoma City builder and threaten another.


Brass Brick Homes director of marketing Ali Bergin and owner Ashley Cunningham, from left in the Brass Brick model home at 5004 NW 164th Terrace in the Lone Oak Village housing addition on Thursday, Nov. 2, 2006, in Oklahoma City, Okla. Photo by Chris Landsberger

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Bridgeport Development and its three home-building divisions — Brookside Homes, LivingstonMeyer Homes and Newhaven Homes — have shut down operations. Jim Meyer, principal, said he is working with lenders, subcontractors and suppliers to sell homes Bridgeport has on the market.

Brass Brick Homes has cut staff, reorganized and is working with lenders to restructure its debt, said Ashley Christofferson-Cunningham, president.

"I’m not filing bankruptcy,” she said. "Are we in a cash-flow crunch along with everybody else? We’re in a cash-flow crunch and we’re working with the banks.”

Credit has dried up for construction subcontractors, with lenders no longer making loans based on accounts receivable, which gives the vendors no leeway in dealing with struggling builders, Christofferson-Cunningham said. That’s one reason for the number of mechanic’s liens filed against Brass Brick homes, she said.

Lending trouble
But she said the biggest problem lies with Brass Brick, which got credit to build homes based on a 70-percent loan-to-value ratio when it should have been 80 to 90 percent. "That’s our fault,” she said, and the company is asking lenders to restructure its loans at the higher ratio, based on appraised value.

Leveraged financing is at a standstill, she said, and many builders in Oklahoma City are hurting.

"We’ve been humbled,” she said. "We were a little spoiled. Oklahoma City has been in denial.”

She said Brass Brick had brought in experts to deal with its financial woes.

"It’s crazy — until everybody calms down and the bankers lighten up a little bit,” she said.

Bridgeport Development, with homes taking much longer to sell than in recent years and a local housing supply 30 percent higher than builders are used to, had little choice but to quit the business, Meyer said.

Avoiding bankruptcy
Meyer said that by forming a new business structure, with both lenders and vendors having a stake, and selling Bridgeport’s remaining houses on the market, the company can avoid bankruptcy court.

"Bankruptcy doesn’t help my vendors or my bankers. It certainly (would give) me additional protection. I’d rather pay everybody. I’d rather they get their money,” he said.


 


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Teena, Oklahoma City - Jan 9, 2009 at 3:03 pm
The owners of BPD should all go to prison, or at least be fined enough that they lose everything! They built my wife and I a new home last year. Mark Livingston himself offered us the purchase price and signed the contract with us. At four weeks out he decided that he needed more money and said that if we did not come up with $60,000 more then the sale would not happen. He said that we added and added things that caused the price increase. NOTHING ON THE PLANS CHANGED!! NOTHING! As the contract read there was nothing we could do! Mark is one of the biggest crooks in Oklahoma. To you people on here that just love the company and are too afraid of leaving your name, you can say what you want about how awful we are, but "what goes around, comes around"!! You all know as well as I do that Mark and Jim will just move to another state and do the same things that they did here until they get caught yet again. I will do everything in my power to make innocent people aware of how these guys operate.

Chuck, Edmond
chuck, edmond - Nov 30, 2008 at 2:05 am
OKC-Builder, their BBB rating is unsatisfactory. They fail to resolve any complaints, including mine. When the boom was going, they didn't care about their customers so long as the money kept rolling in. Before you give your earnest money and sign the contract, they love you and wil ldo anything for you. Once that's done though, you're lucky to actually talk to anyone. Your 'design' in their 'state of the art design center' will likely not work out, as over half of the materials they have in there are either out of stock (and have been for months) or are no longer carried or sold. They won't tell you this though until you're so far in and have made cabinet decisions and paint decisions they won't let you back out of without more cost to you. More than half of our 'custom options' had to be changed throughout the build process because the materials were out of stock, or no longer for sale. You would think they would check this stuff before committing cost and making you sign. They will muck up one part of your house, then make it sound like they're making some big deal for you by upgrading one part, but then won't let you change anything else, even though they are totally at fault.

My wife and I should have walked away the first time they screwed up and lied. However, I was re-assured by Ashely and Wiley and the Brass Brick 'team' that everything was OK and they were going to take care of us. I only hope people looking for builders now, in the market where the quality and reputation of the builder will now be more researched and after criminals like the Cunninghams have been exposed, people will find these articles and read the comments. Good builders should be rewarded, and bad builders like Brass Brick should be shown the unemployment line and have their personal assets and belongings seized to pay the hundreds of people back for the thousands they stole.

JB, good luck walking in to that situation. Short of cutting out the tumors of the current owners and putting the company under new management, Brass Brick will never be seen as an honest business again. Wiley and Ashley have been exposed as the rude, arrogant, criminals they are, who have no moral compass or compassion outside of what they can do for themselves at the expense of everyone else around them. Talk to the dozens of former employees, or the hundreds of customers who bought their houses in the Lone Oak properties and now regret it because of the quality of their home, or the rude and criminal behavior of the Brass Brick management when they tried to get warranty work done. Look at the turnover in that neighborhood! Hell in our neighborhood alone, we've had almost a dozen former Brass Brick/Lone Oak residents move in who hated BB and their houses. Talk to the hundreds of contractors who signed for work with them in good faith, did the work, and are now not being paid, who have their own families and responsibilities and are now in default because Wiley and Ashley mis-managed the company at everyone's expense but their own.

Good luck JB, I just hope you get rid of the root cause, or nothing will change. To everyone else, STAY AWAY from Brass Brick!
Jer, Edmond - Nov 2, 2008 at 8:18 am
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SO - Just read these and figured out how to post. I am a new financial backer for one of the Brass Brick entities. I have not been involved with the construction of any of the homes mentioned to date, but I do want to see if I can help make sure that those of you that have houses under construction are able to get them finished and closed,hopefully still within your contracted time frame. Building activity has started back up and I intend to see to it that every legitimate buyer gets their dream home as promised. So- I think I've seen your beautiful home almost done (from the outside anyway) and will work with you to make it happen.
A hole has been dug that will take some time to dig out of, but I am confident that contractors, suppliers and home owners will be taken care of. I'm not sure how this blog works but I know better than to put my phone number out there, so...SO, if you're still reading this...respond and I'll try to figure your home deal out to your satisfaction.
It is my belief that customers go to a builder to build their dream home...that anything less constitutes a nightmare...and it must be fixed. JB
JB, Edmond - Oct 30, 2008 at 9:44 pm
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Another casualty in the local home building industry was Pinnacle Fine Homes. They built in the Norman, Moore, and S. OKC area. I haven't heard of any unfinished homes or unpaid subcontractors, but I heard they filed bankruptcy and their website has been taken down. Anyone know something about what happened?
Mitch, Oklahoma City - Oct 25, 2008 at 8:40 pm
One last thing-Their rating with the BBB is UNSATISFACTORY. Check it out for yourself. BBB complaints roll off their record every 36 months, "OKC-Build." So there is no telling what has actually happened in the last 10 years that you speak of.
Catalina, Edmond - Oct 22, 2008 at 9:11 pm
PS- oops, I meant speechless.

PPS- make that 5 complaints. Mine hasn't made it all the way to the website yet. But the deadline for Brass Brick's response to my complaint was 2 days ago. Think they bothered to respond? Yeah right.
Catalina, Edmond - Oct 22, 2008 at 9:06 pm
"OKC-Build", you have no idea what you are talking about. Ashley is NOT a good person. "SO", I also have been on the receiving end of Ashley's VILE MOUTH. Their work is substandard and their customer service is atrocious! Dana Babbs is no better than Ashley. I was speachless when after calling to find out when my incomplete home (that was already closed on because they lied about completion times) was going to be finished. After Ashley cussed me out, she ACTUALLY HUNG UP the phone on me. HUNG UP on someone who just paid her a quarter of a million dollars! Brass Brick is a JOKE and deserves every bad thing that comes their way. "OKC-Build", they are having a "hard time" because they are dishonest and their business practices are FRAUDULANT. It has finally caught up with them. Nothing makes me happier than to see them exposed for who they really are.
Catalina, Edmond - Oct 22, 2008 at 9:02 pm
"Good People" don't cuss out customers that are spending a quarter of a million on a Brass Brick home. They also would be honest with their customers. 3 weeks ago Dana Babbs blamed the stop on the house we were building on the contractors. I was told they had not turned their invoices in on time so Brass Brick didn't pay them. Yeah sounds like good people.
so, okc - Oct 22, 2008 at 6:52 pm
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I find it strange that out of 500+ homeowners and 10 years of building homes, that there were only 4 Better Business complaints and now homeowners are making hateful statements. When you’re selling 90+ homes a year, you want to keep homes on the market for buyers that need something quick. After I started tracking building permits for builders, Brass Brick slowed down when they knew the market was slowing. Yes, now bills are not paid and they have had bankers try to work with them. They could have just closed their doors, but they are trying to get back on track. Wiley and Ashley are great people, they are just going through a very hard time.
Okc-Build, Oklahoma City - Oct 22, 2008 at 5:43 pm
Does anyone know who the developers picked to build in the 2 new Lone Oaks? I have heard they have branched out from the usual 4 (Turner, Justice, Carr and Brass Brick) to various builders. I know one builder who was chosen but backed out because he was moving to Las Vegas.
Tony, Edmond - Oct 22, 2008 at 9:42 am
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And as a side note - I saw their article in the Edmond Monthly a few weeks ago. What kind of morals and values are you teaching kids when you are borrowing from Peter to pay Paul? I agree with many of you about the "karma" part (I, too, was a BB buyer a few years ago and thought her attitude was arrogant).
S, Edmond - Oct 21, 2008 at 10:09 pm
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I am a bit shocked. A quick look at their website shows they have 41 homes either sitting or were in process of being built. (http://www.brassbrick.com/BrassBrickForSale.aspx ) I cant imagine the carrying costs for those homes...
SO - Turner & Son seems to build nice homes. Might not be a bad idea to contact them and tell them your story. However, I would be cautious about buying in LOC. Unfortunately you may have a bunch of empty houses sitting on the market in that neighborhood - which could devalue yours... Tony is right - unfinished homes in a neighborhood invites all kinds of issues... Just a thought.
S, Edmond - Oct 21, 2008 at 10:05 pm
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Tony, ours is/was also Lone Oak Creek. The home we were building is almost done. It has been bricked and painted. Then over three weeks ago it all stopped. The lighting was delivered the last week in September but now it is gone and the house is locked. I don't know what is up with that. We have asked and asked and Brass Brick will give us absolutely no indication of when work will resume. How long should I be expected to wait? I feel like the best thing to do would be accept our losses and move on. There is a very nice home in Lone Oak Creek that Turner and Son started the same time ours started. Of course theirs is done and now on the market. Maybe I should check it out. Obviously we chose the WRONG builder. Also, no answer today at the offices of Brass Brick Homes Inc. I'm sure they wish I would just go away. That is not going to happen.
so, okc - Oct 20, 2008 at 4:22 pm
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So, OKC, Which Lone Oak are you building? I live in a Brass Brick in Lone Oak Creek and have noticed one house of three that has sat vacant for almost two months. It is framed and roofed but the brick has been sitting since the day they dropped it off. We bought our home back in January and we really had an easy time dealing with them. We bought a spec so we never dealt with the people in the office when it came to picking out colors, etc. We only spoke with and dealt with David the Sales VP.

I hope they either fix their problems or sell their under construction homes to other builders because looking at a unfinished house for months will get old.
Tony, Edmond - Oct 20, 2008 at 2:17 pm
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Let me begin by saying that every single word that big brother and Kelli in Edmond posted on this page is 100% true! I really couldn't have put it any better than they did.

I had no dealings with BrassBrick Homes but worked very closely with Bridgeport Lending and Bridgeport Developement. Let me start by saying that I hope they get what they deserve. They have been taking advantage of borrowers, buyers, employees, contractors and anyone else they do business with for years.

Let me start with Bridgeport Lending(BPL) and its president Kelly Griggs. Mr. Griggs and BPL have for years participated in "QUESTIONABLE" lending practices. I could give you example after example but if you and the rest public would like to know of a pretty good instance contact Telemundo and ask them about their investigation into Mr. Griggs and BPL's practices with Hispanic borrowers. They were point blank stealing money from borrowers. I think you'll find it to be quite interesting. Trust me, thats just the tip of the iceberg. Some lawyer would have a hayday with this company if they started looking at the books, labor practices and lending practices.

Bridgeport Developement Group is ran just as poorly with complete disregard for anyone other than the people at the top. I know for a fact that they were filing "slient" second mortgages on employees homes and calling it "employee incentive" and not disclosing any of the "employee incentives" on the HUD-1 or with a good faith or truth in lending.(there's a word in the mortgage industry that starts with FR and ends with UD that this falls into the category of) There was a gentleman in the Kansas City area doing the same thing. His name is F. Jeffrey Miller look him up for some interesting reading.(http://www.fraudblogger.com/JeffreyMillerIndictment053106.asp) He was a real piece of work and ended up in jail for his 3 ring circus and I can only hope that the same befalls the gentlemen at the top of the Bridgeport Developement team including Mr. Griggs. I can't begin to imagine the problems the arrogance of these guys has caused not only former & current employees; but buyers, borrowers, contractors and everyone else through the process. I believe whole-heartedly in karma and they will get what they deserve!
The Ticket, Edmond - Oct 20, 2008 at 1:53 pm
I really wished I had known all this before. I will do my best to let others know how I feel. If I weren't such a chicken I would call the media. I really really want my money. Not only our earnest money but also 400.00 we had to pay for an appraisal on a house that will not be finished by the time our "contract" runs out.
so, okc - Oct 19, 2008 at 9:31 pm
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So, and everyone else, you can bet dollars to donuts that the last people to suffer from a slowdown, bankruptcy, etc will be Ashley and Wiley. Whether it's the homeowners that handed over earnest money in good faith that they were doing good by them, or the contractors that did work for them and haven't gotten paid, everyone else will suffer before the self-annointed goddess of OK home building.

We never finished our house with them, as we lost our earnest money and other monies we put in the house on our own before they pulled the plug due to their ineptness in not being able to do the house as we originally wanted. And due to their complete lack of honesty and morality, they said it was our fault and kept our money and the additions we made (all told around $6,000). I even got a call from Ashley herself to listen to her bitch at me about how it's our fault, just hours before the final walk-through. And then when I drove up to their office to discuss the crazy drunk-dial incident, she tore out of there and put her husband and the site supervisor in her place to try and explain her crazy reasoning.

We found a better house with a much better, and more honest building (4 Corners Construction), and the $6k we lost was both a blessing and a lesson learned. However, the world would be a better place without these foul people consuming our resources and robbing those who trust and trusted them. I feel terrible for all those they have robbed, and are robbing now, but when we can rid ourselves of these people and their crocked business, the better off we all will be in the OKC area.

And I will be following these people around when they decide to stray into yet another area where people may now know of their true intentions and do my best to alert the innocent and unaware people of Ashley and Wiley's efforts. It's been a distinct pleasure to warn and steer the lookers in our neighborhood from using them, and was warmly rewarded to see one of their specs take over 2 years to sell. Makes me feel good I steered dozens of people from using and buying the crap they were selling and hopefully helping people not get robbed.
Jer, Edmond - Oct 19, 2008 at 5:12 pm
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Also, I emailed one person on Thursday and got a response from someone totally different (a new employee I have never dealt with). Our home was about 85% done when this trouble began. It is in the Lone Oak area. I am confident we will not be closing with Brass Brick on that house. Ashley was incredibly rude and even used foul language with me. She was EXTREMELY defensive. They are thieves and they know it. As a mother of all those kids you would think she would have a little bit of respect for families/family values I can't imagine she would like it if someone stole 1/4 of her entire savings for a new home (which is what she did to my family). Also, I understand they are building a new house. I wonder if production on it has come to a hault?? I doubt it.
so, okc - Oct 19, 2008 at 5:55 am
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so, in which neighborhood is your house?
Catalina, Edmond - Oct 18, 2008 at 9:04 pm
Jer, I am with you. I too have been screwed by Brass Brick both when buying a home from them, and when trying to get them to make good on their warranty. I have also had to experience Ashley's nasty attitude. She is a miserable human being. I am only astonished that she didn't self-destruct sooner than now.
Catalina, Edmond - Oct 18, 2008 at 9:03 pm
You know, with regard to Brass Brick Homes, such horrible circumstances couldn't have happened to more deserving people. Ashley and Wiley deserve to reap every seed they've sown into the people they screwed over. They defference and specifically Ashley's rude manner in which she handled herself and her customers speaks volume about how Karma is an unavoidable force to be dealt with. We can only hope they fold up for good, and they never again jump into areas where they can rob and steal from people under false pretenses. Check the BBB, and the builder's reviews from the OK area. I am not alone, and they know it. Their lies and deceipt have finally caught up with them, and I couldn't be happier to see them circle the drain.
Jer, Edmond - Oct 18, 2008 at 7:14 pm
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FYI.........the only working numbers for Brass Brick are at their main office. The numbers for their sales in the various neighborhoods have all been disconnected. Does that mean the sales people were let go?
so, okc - Oct 18, 2008 at 4:09 pm
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I have been reading the comments by the various people on this blog and I have found some interesting things.
1) There is but one or maybe two people who can actually speak from expeirence, from being on the inside, about what went on daily at Bridgeport. Myself being one of them.
2) As for the comments by "Blessed". You may have had a "pleasant", and I use that word loosely, expierence with Bridgeport and its affiliates. You have no clue what went on with its day to day activities. Did you know that they recently had to retain a lawyer in D.C. to try and retain there FHA license??? It's when your FHA default rate goes over 200% that the government tends to frown upon your lending practices.

3) Were you also aware that some of the employees paychecks bounced? And that BPL held money from there employees paychecks illegaly? You probably weren't because you didn't work there. It's on public record and the department of labor so check it out. So don't assume that you know about there accounting practices. You don't!!

4) Ask Rick Metheny how much they owe him for concrete?? I bet it would be an interesting answer. And how they couldn't get appliances put in houses because the vendor's wouldn't deliver them. Not even C.O.D!
These are the facts and they are undisputable! I lived it!
Big Brother, Oklahoma City - Oct 17, 2008 at 7:45 pm
quick example...if you bought a house for a contracted amount and 60 days before you are to close on that house they come back and say they need 30K more when there hasnt been a single chnage order - is that fair? then they take your house back and sell it as a spec even after you offered them 23K more then the origonal contracted price...Tell me thats fair... Thats how they treat not only their buyers but their employees and their subs...
Kelli, edmond - Oct 17, 2008 at 2:20 pm

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