Allegations of mortgage fraud at the lending subsidiary of a publicly-traded homebuilder have led to a grand jury subpoena.
Beazer Homes USA Inc. has received the subpoena from the U.S. Attorney's Office in the Western District of North Carolina, according to a FORM 8-K filing with the Securities and Exchange Commission Thursday.
The subpoena, issued at the request of the Department of Housing and Urban Development's Office of Inspector General, seeks mortgage origination documents, the filing said.
The Atlanta-based homebuilder announced Wednesday no allegations of wrongdoing had yet been made and it was cooperating with a "request for documents" form the Justice Department.
"We believe this request was fueled by the articles recently published by the Charlotte Observer," Wednesday's press release said. "Based on our internal investigations to date, we have found no evidence to support the allegations in these articles."
Beazer said it hasn't received any requests from the FBI or Internal Revenue Service.
Previous MortgageDaily.com coverage indicates the investigations are focused on loans closed by subsidiary Beazer Mortgage Corp. and secured by homes in at least one North Carolina subdivision developed by Beazer
"The U. S. Attorney's Office has stated to the company that the U.S. Attorney has made no allegations of wrongdoing by Beazer Homes at this time," the filing said.
Mortgage Fraud Alleged at Homebuilder
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.