Beazer Homes Pays $2.5M In Settlement With State Commissioner

Posted by Orb Staff on May 20, 2009 No Comments
Categories : Residential Mortgage

-defunct mortgage subsidiary that formerly belonged to Atlanta-based home builder Beazer Homes USA Inc. has entered into a settlement agreement with the North Carolina Office of the Commissioner of Banks (OCOB) and will pay $2.5 million to certain borrowers. The settlement was the result of the OCOB's examination of loans originated in 2007 by Beazer Mortgage Corp., which voluntarily ceased operations in February 2008. Beazer Mortgage admits no wrongdoing, according to a company press statement, and the settlement concludes the OCOB's investigation into these matters with respect to the company. A separate investigation by the U.S. Attorney for the Western District of North Carolina is ongoing, the statement adds. The state's deputy commissioner of banks, Mark Pearce, told the [link=http://www.newsobserver.com/business/story/1534635.html][u]Charlotte Observer[/u][/link] that Beazer Mortgage charged discount points that were not compliant with North Carolina law. ‘They didn't reduce rates the way they're supposed to," he said. Between a lawsuit and actual and potential settlements, the company could spend upwards of $80 million, the Observer reports. Refunds are expected to be sent to borrowers in the next 60 days, with the average refund being more than $1,500. SOURCES: Beazer Homes, Charlotte O

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