Agent

The lowdown on downpayment programs

Alleged scheme said to push loan defaults higher

The real estate event of the summer
Connect with other top producing agents at Connect SF, Aug 7-11, 2017

I don't know about you, but I found the recent published reports that Beazer Homes USA Inc. will pay as much as $53 million to settle mortgage fraud charges relating to its own buyers particularly disturbing. According to news reports, Beazer allegedly ignored income requirements so as to make loans to unqualified buyers. As one could have predicted, these loans blew up.But to make matters worse, Beazer allegedly attempted to hide from the Federal Housing Administration (FHA) excess default rates on their loans, and, according to prosecutors, charged homebuyers interest "discount points" at closing but kept the money and didn't reduce the interest rates on loans. However, the alleged "Sleazer" tactic that particularly bothered me was a kind of Scrooge-like downpayment assistance plan: Beazer offices allegedly provided cash gifts to homebuyers so they could make a minimum down payment, but then added an equivalent amount of the gift price on top of the p...