twitter linkedin
facebook google+
Search:

Mortgage News

News by Subject
Complete list of specialty news sections.

Purchase Subscription
Subscribe to MortgageDaily.com and get immediate access to all news, statistics and archives.

Mortgage Advertising
Reach mortgage executives, loan originators and other people tied to mortgage industry.

Consumer Mortgage News
Free mortgage news for prospective borrowers.

Mortgage Newsletter
Free e-mail newsletter with the latest headlines from MortgageDaily.com.

Mortgage News Reprints
Put entire MortgageDaily.com stories in your online or printed newsletter or publication.

Mortgage Feedget RSS code
Condensed MortgageDaily.com stories free on your Web site or for your RSS reader.

News Archives
Archive of MortgageDaily.com stories by month going back to 1999.

Press Releases
Reports and announcements from MortgageDaily.com.

Mortgage Statistics
Data and statistics for real estate finance.

Mortgage Directories
Directories of lenders, branch operators and mortgage service providers.

Mortgage Graphs
Directories of lenders, branch operators and mortgage service providers.

home subscribe advertise reprints e-mail help RSS about us LOG IN

Mortgage News

 

Mortgage News

HOT Topics

production

servicing

compliance

legal

fraud

secondary

jobs

appraisal

site map

www.loan-academy.com/

Mortgage Fraud News | Fraud Statistics | Fraud Index | Fraud Blog
Mortgage broker, originator and banker criminal cases. Real estate flipping and appraisal fraud. Mortgage fraud prevention, studies and analysis.



Mortgage Fraud Alleged at Homebuilder

Beazer unit under federal investigation

March 28, 2007

By JERRY DeMUTH


Federal investigations into Beazer Homes USA Inc. center around mortgage fraud allegations at its mortgage unit. Among federal agencies investigating the company are HUD's Office of Inspector General, the Internal Revenue Service, the FBI and the U. S. Attorney's office.

The investigations are focused on loans secured by homes in at least one North Carolina subdivision developed by Atlanta-based Beazer Homes.

Beazer Homes, which operates in 21 states, originates loans through its subsidiary Beazer Mortgage Corp., which has 31 offices in 16 states.

A year ago, its Charlotte office, one of two North Carolina offices, voluntarily surrendered its right to make FHA loans but its 15 other offices, including the one in Raleigh, remained FHA-approved lenders.

The investigation of potential fraudulent lending practices involving FHA-insured and other mortgages, which reportedly have experienced high rates of foreclosures, was confirmed by a Washington, D.C., official with one of the agencies, who told MortgageDaily.com that he has been following the investigation but declined to provide further details.

FBI spokesman Ken Lucas of the bureau's Charlotte office was quoted as telling BusinessWeek magazine that the joint investigation is looking at "all types of [potential] fraud associated with Beazer -- corporate, mortgage, investments."

When contacted by MortgageDaily.com, Lucas declined, through a spokesperson, to say anything further.

Beazer Homes said, in a statement, that it would not comment on or verify any investigation but that it will "fully cooperate with any investigation by any government agency" and is already cooperating with a request for certain documents.

In its defense, it said it merely collected the necessary information from home purchasers and then submitted that information to lenders who then underwrote and approved the loans. Its internal investigations have not found any evidence to support allegations of the illegal or fraudulent activities that have been made against it.

Beazer has acknowledged using buydowns to help people qualify for loans, a practice that may be one issue in the federal investigation because the FHA allows buydowns only when it has been documented that homebuyers can still afford the higher payments that occur when those buydowns expire.

Beazer Homes also has been named as defendant in a class action lawsuit that charges the firm with illegally arranging mortgage loans that some borrowers could not afford, resulting in multiple foreclosures and declining property values, according to attorney Matthew R. Arnold, of Andresen & Associates, Charlotte, who filed the suit on March 23, after the federal investigation began.

The North Carolina Appraisal Board, which licenses appraisers, reportedly is considering investigating whether appraisals of homes in some Beazer Homes developments were inflated.

Last week, Beazer's CFO, James O'Leary, resigned to become president and CEO of Kaydon Corp.

Beazer's stock price continued to slide as news of the federal investigation spread -- falling $3.01 per share to $28.40 Wednesday afternoon. Shares had traded as high as $69.61 during the past year.


Jerry DeMuth is an award winning journalist who has been reporting for four decades.

e-mail Jerry at [email protected]

FHA News | Government Resources | M o r t g a g e e Letters | FHA Statistics
FHA, VA and HECM mortgage news. HUD and G i n n i e news also. Originations, servicing and FHA approval.



Logout forgot
password?

Mortgage Fraud Statistics
Government and private data on volume of mortgage fraud activity.



Mortgage Fraud Index
Dollar and index amount by quarter and state.



Mortgage Fraud Litigation
Lawsuits and settlements invoving mortgage fraud by a lender insider. From 2007 through first-quarter 2013



Mortgage Fraud News
News stories about fraud committed against home lenders.



Mortgage Fraud Blog
Actions in mortgage fraud criminal and civil cases.



local mortgage fraud


mortgage fraud links



SUBSCRIBERS: Edit Subscription | Subscription Help | or call 214.521.1300

Subscribe Contact Us Site Map

Copyright © 2017 Mortgage Daily, D a l l a s
Subsribers Only:

AMC directory

ARM indexes

mortgage company directory

mortgage regulations

net branch directory

p r i c i n g engine directory

wholesale lender directory

More Mortgage News Resources (full site map):

advertising news

appraisal news

bank news

biggest lenders

commercial mortgage news

corporate mortgage news

credit news

FHA news

financial regulation news

foreclosure news

GSE news

jumbo mortgage news

interest rates

loan modification news

loan originator survey

LOS Newsletter

MBS

mortgage associations

mortgage-backed securities

mortgage books

mortgage brokers

mortgage compliance

mortgage conferences

mortgage directories

mortgage education

mortgage employment

mortgage employment index

mortgage executives

mortgage fraud

mortgage fraud blog

mortgage fraud local news

Mortgage Fraud Index

Mortgage Graveyard

mortgage insurance news

mortgage lawsuits

mortgage leads

mortgage lender ranking

mortgage licenses

mortgage litigation

Mortgage Litigation Index

Mortgage Market Index

mortgage mergers

mortgage news

mortgage politics

mortgage press releases

mortgage production

mortgage public relations

mortgage rates

mortgage servicing

mortgage statistics

mortgage technology

mortgage video

mortgage Webinars

net branch

net branch directory

nonprime news

origination news

originator tools

real estate news

refinance news

reverse mortgage news

secondary marketing

social media

servicing news

subprime news

wholesale lenders