Tuesday, March 27, 2007

Beazer Homes lending problems

From thestreet.com, national builder with a local precense having some serious lending issues. Hopefully, the did not use these same lending standards here in Bakersfield:

Federal investigators have opened a criminal probe into the lending practices of homebuilder Beazer Homes according to a BusinessWeek report Tuesday.

The Federal Bureau of Investigation, the Internal Revenue Service, the Justice Department, and the Inspector General of Housing and Urban Development are all involved in the matter, BusinessWeek said. The report cited an FBI spokesman and other people familiar with the probe.

The probe is related to a recent report in The Charlotte Observer that looked at significantly higher-than-average foreclosure rates for Beazer homes and allegations of abusive lending practices.

A representative from Beazer couldn't immediately be reached for comment. Shares of the Atlanta-based company were plunging $3.19, or 10%, to $28.22 in after-hours trading.

The news comes as the subprime mortgage industry has been slammed by rising delinquencies and criticisms of its lending practices. An investigation into Beazer, however, would mark the first time a major homebuilder has been brought into the recent lending ruckus

1 comment:

Anonymous said...

I applied for a Beazer mortgage. I have perfect credit etc. I received the paperwork and it was wrong not once, not twice, not three times, but four. I called them talked to managers and complained. I finally got fed up with their attitude and walked. Looking back it seems funny but they kept getting things like social numbers incorrect. They also kept giving me the wrong loan program. I am so glad I walked away, but if I have a case of indentity theft I think I would look to them