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.
Posted by Doug Karr
Tue Mar 27th, 2007 06:19 PM
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 Jay Thompson
Tue Mar 27th, 2007 08:16 PM
Oops.... Beazer is huge out here (Phoenix). Could be interesting.
Posted by Mark Zabilowicz
Wed Mar 28th, 2007 10:13 AM
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 Condo Blog
Wed Mar 28th, 2007 12:21 PM
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