Beazer agrees to pay $50 million

Homebuilder admits mortgage firm bilked borrowers

LIVE NOW: Inman Connect San Francisco
Tune-in now to catch the livestream. Don't miss this chance to see real estate leaders tackle the industry's top problems.

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.