Industry News

Beazer says down-payment-assistance rules may have been broken

Company seeking $8M-$15M settlement with regulators

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Saying there's evidence that employees of its mortgage subsidiary violated HUD regulations governing down-payment-assistance programs, Beazer Homes USA Inc. announced today it will restate earnings going back to 2004. The restatement could impact financial results going back to 1999, Beazer Homes said in disclosing findings of an internal investigation into its mortgage origination business, Beazer Mortgage Corp., and other accounting and financial reporting issues. The SEC and the U.S. Attorney's Office are also investigating Beazer, after a series of stories in the Charlotte Observer documented cases where the company appeared to have broken rules governing down-payment assistance, selling homes to low-income buyers who couldn't afford them and including the cost of financial incentives in the price of the homes. Beazer said its own investigation, "found evidence that employees of the Company's Beazer Mortgage Corporation subsidiary violated certain U.S. Department of Ho...