Industry NewsMortgage

Beazer agrees to pay $50 million

Homebuilder admits mortgage firm bilked borrowers

Don't miss the real estate event of the summer
Join 4,000 real estate pros at Connect SF, Aug 7‑11, 2017

Federal prosecutors say they won't pursue criminal charges against Beazer Homes USA Inc. as long as the company remains in compliance with an agreement to pay up to $50 million in restitution to homebuyers who were allegedly victimized by the builder's mortgage company.The case serves as a dramatic illustration of the Department of Housing and Urban Development's complaints about seller-funded down-payment assistance programs, and homebuilders' affiliated mortgage and title insurance companies.Beazer and its subsidiary, Beazer Mortgage Corp., admitted to engaging in several fraudulent mortgage origination practices, prosecutors said, including keeping discount points that should have been used to provide some homebuyers with a reduced interest rate.Other homebuyers were told they were receiving a "gift" from a charity to cover their down payment when, in fact, the purchase price of the home they purchased was increased to offset the supposed "gift."Beazer also accep...