NEWS BREAK: FBI Investigates Beazer
A: And the sub prime mess gets a little uglier. Breaking news on CNBC reports that the feds are now investigating Beazer Homes for lending fraud. Is this just an isolated investigation or the beginning of a new trend in the extension of loan worries that may expedite lenders into tightening standards?
CNBC reports that the FBI has opened an investigation into home builder Beazer Homes for acts of mortgage fraud in predatory lending practices. Already lending woes are starting to prove deeper than originally expected as now the homebuilders are at risk for more investigations.
Expect the home builder stocks to get hit and tighter lending practices to be put in place throughout the entire home building industry earlier than expected as a result of this fed action. And the hits just keep on coming!
Beazer Home's Stock price (BZH: NYSE) is down about $4.31 in after-hours trading.
Comments (4)
This is interesting. Beazer was definitely a large advertiser here in Indy when I worked for the local newspaper. Indiana has a huge home default rate... curious how much Beazer impacted it.
Regards,
Doug
Posted by Doug Karr | March 27, 2007 6:19 PM
Oops.... Beazer is huge out here (Phoenix). Could be interesting.
Posted by Jay Thompson | March 27, 2007 8:16 PM
Beazer has a brand new community they are selling in Land O Lakes.... We also have issues with another builder here Transeastern Homes!!
Posted by Mark Zabilowicz | March 28, 2007 10:13 AM
Does anyone know if Beezer was in a JV with a real mortgage lender or did they acutually carry their own license? Many of these homebuilder Mortgage companies are usually a joint venture wiht companies like Wells Fargo Home Mortgage or Countrywide
Posted by Condo Blog | March 28, 2007 12:21 PM