....infects Beezer Homes:
NEW YORK, March 27 (Reuters) - U.S. authorities are investigating the lending practices and some other dealings at Beazer Homes USA Inc. (BZH.N: Quote, Profile , Research), one of the largest U.S. home builders, BusinessWeek reported on Tuesday.
Beazer Homes said in a statement that it could not comment on or verify any investigation, but added, "However, we will fully cooperate with any investigation by any government agency."
Federal investigators could not be reached for comment.
BusinessWeek said the North Carolina field offices of the Federal Bureau of Investigation, the Internal Revenue Service and the Justice Department recently opened a joint probe into the home builder's lending practices. Beazer is based in Atlanta, Georgia.
The Inspector General of Housing and Urban Development was also part of the investigative group because a large number of Beazer's loans were made to low-income borrowers and insured by the Government National Mortgage Association, BusinessWeek said.
The investigation follows a series of articles published by The Charlotte Observer newspaper in March, which detailed allegations of abusive lending practices and high foreclosures in a number of Beazer developments, BusinessWeek said.
The Observer's investigation alleged that foreclosure rates in several Beazer developments ran at around 20 percent, compared with the national average of 3 percent. At the time, Beazer said in a written statement the high foreclosure rates were an anomaly, BusinessWeek said.
Last week, a North Carolina law firm filed a lawsuit in state court seeking class-action status against Beazer, accusing the home builder and its mortgage company of selling mortgages to unqualified buyers.
The suit said Beazer Mortgage would advise or encourage prospective buyers to falsify information in their loan applications.
The suit also said the company changed information on loan applications by the prospective buyers for buyers to qualify to buy a home in the Beazer subdivision.
The suit seeks damages for each class member of less than $74,999.
Beazer said in its statement that based on its internal investigations to date, "We have not found any evidence to support the allegations in the Charlotte Observer."
In after hours trading, Beazer shares were $26.81 compared to a close of $31.41 on the New York Stock Exchange. |
