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Case Details for "Beazer Mortgage Corporation"
Beazer Mortgage Corporation settles lawsuit
Beazer Mortgage Corporation, a subsidiary of Atlanta-based Beazer Homes USA, will pay $2.5 million in restitution to about 1,600 North Carolina borrowers, according to a settlement with the state's Office of the Commissioner of Banks.
The deal stems from a 2007 investigation that found "numerous and serious violations of North Carolina's lending laws," according to a news release from the state agency. A primary finding involved discount points, which are fees paid to lenders in return for a lower interest rate.
"In particular, (the banks commissioner's office) alleged Beazer failed to comply with North Carolina's requirement that discount points be bona fide and paid for the purpose of reducing a borrower's interest rate," the release said.
Earlier this month, Beazer agreed to a $30.5 million settlement of a Georgia class-action lawsuit that accused the company of artificially inflating the stock price on sales generated by loans to unqualified buyers.
Meanwhile, Beazer is still in negotiations with the U.S. Attorney for the western district of North Carolina, where investigators are looking into Beazer lending practices.
Posted on:2009-05-20
Company: Beazer Mortgage Corporation
Class: unknown
Scope: North Carolina
Type of Case: Consumer
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