Pulte cannot omit mortgage risk proposal - report

WASHINGTON, March 7 (Reuters) - Pulte Homes Inc (PHM.N: Quote, Profile, Research) has been denied a request to exclude a shareholder proposal seeking to establish a way to enforce "prudent lending practices" at the No. 3 U.S. home builder, advisory firm RiskMetrics Group said on Friday.

RiskMetrics said in a report that the denial bucks a trend of the U.S. Securities and Exchange Commission allowing companies to omit similar resolutions from their annual proxy statements.

The report said the SEC "to date has allowed home builders and financial services companies to omit a variety of proposals seeking to address risks related to mortgage lending practices or exposure to mortgage-backed securities."

An SEC spokesman said the agency did not have a comment beyond its staff letter saying it could not concur with Pulte's argument on why it should be allowed to exclude the proposal.

The U.S. housing market has been in a tailspin for more than two years, with top builders cutting prices while orders have dwindled. The industry has also been caught in the spreading subprime mortgage crisis, with has increased investor scrutiny on investment banks and mortgage lenders.

The International Brotherhood of Electrical Workers' Pension Benefit Fund submitted the proposal to Pulte Homes. Itasked the company to establish a committee of outside directors to develop and enforce policies to ensure non-traditional mortgage loans "are consistent with prudent lending practices."

The IBEW also asked that the board report to shareholders within one year on those policies and enforcement.

The proposal was submitted to be included in Pulte's annual proxy materials and to be voted on at the company's annual shareholder meeting.

A representative from the IBEW was not immediately available to comment. A spokesman for Pulte did not immediately return a call seeking comment.