Thursday, March 29, 2007

Beazer Homes Investigated for Potential Fraud

A Charlotte, North Carolina FBI agent stated that the FBI and the US Attorney’s Office, along with the Internal Revenue Service and HUD launched an investigation of Beazer Homes after the Charlotte Observer reported that there was an abnormally high foreclosure rate in one of their new home developments in North Carolina. Seventy-seven homes went into foreclosure in the in the Southern Chase subdivision of 406 new homes.

Beazer Homes acknowledged that the company was under investigation and has released two statements. In the first, the company states, ”The allegations by the Charlotte Observer focused primarily on one Charlotte subdivision, Southern Chase. In that subdivision, Beazer Mortgage Corporation originated the loans for the borrowers and served as a broker, not a lender. We were involved on the front end of the loan transaction process, compiling the necessary information, which we then submitted to the lender for underwriting review. The ultimate underwriting decision for the loan rested with the lender. ”

“Based on our internal investigations to date, we have not found any evidence to support the allegations in the Charlotte Observer.”

In the second statement the company let it be known that, ”Beazer Homes has been in contact with the U.S. Attorney’s Office and, at this time, there have been no allegations of any wrongdoing. Instead, Beazer Homes has received a request for documents generally relating to its mortgage business.” They further stated that, ”We have further been told by the U.S. Attorney’s Office that the statements by the FBI and published by Business Week were not authorized and should not have been made.”

mortgage fraud

1. It’s about time that the builder’s are investigated.  When you raise the purchase price to “purchase” financing for unqualified borrowers and pay extremely high commissions to realtors you are inflating the values and setting up the community for disaster.

   Posted by  on  04/03  at  05:50 AM

2. Builder controlled mortgages are a complete conflict of interest.  I don’t see Remax Mortgage, Century 21 Mortgage, or Coldwell Banker Mortgage out there.  I think if the FBI & the US Attorney’s office took a look at the total builder package and really dug into their practices they would be shocked and horrified.

   Posted by  on  04/04  at  08:11 PM

3. Unfortunately Coldwell Banker (those owned by NRT) do have their own Mortgage Company.  In fact, I have first hand knowledge that they are waiving desk fees and paying higher commission splits to the agents that have a high “capture rate” with their controlled entity.  ABA’s are the problem with today’s mortgage market.  ABA’s are simply a supposedly legal way to pay an otherwise illegal kickback.  I dare the authorities to cross reference all of the loans in foreclosure with ABA’s and without.  I bet that loans originated with an ABA have a higher overall foreclosure rate.

   It’s simple.  When the builder, lender and title company are all owned by one entity the client simply does not matter.  It all boils down to greed.

   Posted by  on  04/05  at  08:14 AM

4. Actually most realty companies work in conjuction with mortgage brokers and investors. Example you may have John-Smith realty....who works with Smith-John mortgage ....who looks for investors or lenders to finance the loan....also most realty companies have their own title companies Many times owned by the individuals who own the realty....so you have the realtor getting the realtor fee..loan officer collecting a broker fee and the title company collecting the title fees and they are owned all by the same company. >>>>>FIGURE THAT ONE OUT. Talk about covering your bases.

   Posted by  on  04/09  at  08:57 AM

5. I agree the builders should be investigated.  One of my borrowers was told if my company did their loan instead of the bldr in-house lender the sales price would go up $11,000.00!  That’s not legal, not to mention just plain wrong.  Where is the Ralph Nader of the mortgage industry????  Someone needs to be looking out for the consumer.

   Posted by  on  04/11  at  01:02 PM

6. We are under constant pressure from the Building and realtor community daily.  I spoke with a RE Broker last week who stated, “ A desk rental fee just isn’t enough to let a Mortgage Company come in my office.” Quality customer service solid financial products are no longer satisfactory requirements of the lender/broker.  It is, unfortunately, all about the buck!  There are too many weak Loan Officers in our industry who buckle to the demands of both builders and realtors demands for “referral fees.” The problem not only lies in this LO weakness and passion for the buck, but the total lack of enforcement by regulators. It is a slap in the face to those of us who contunue to put our client’s’ interests first in spite of watching those who see great financial gains from these unethical & costly practices. And HUD was wanting to changes RESPA and allow for the bundling all these services!  Yikes!

   Posted by  on  04/27  at  03:59 AM

7. Who can I contact regarding Beazer Homes mortgage fraud in my area?  There was almost a $10,000 difference between the Good Faith estimate and the actual closing costs.  When I asked about the huge difference, I was informed, “I forgot to add the Federal, State, and Local taxes”. My question was why the great difference and I did not have that kind of money laying around.  The rep replied, “You have it in your savings account.  Use that money.”

   Posted by  on  05/26  at  05:56 PM

8. I am a former employee of Beazer Mortgage. Realtors and builders are gladly selling forclosure to keep sales numbers and capture rates up.

   Posted by  on  06/22  at  07:39 AM

9. Beazer Mortgage and the builder (Beazer Homes) did not disclose on my good faith estimate or my final settlement statement that I would have to pay taxes to the City of Cambridge. I was told that I would pay county (Dorchester) and state taxes. After purchasing the townhome, I later received a bill from the city stating that I owed additional taxes to the city. If I had known that I would have to pay city, county AND state taxes, I would not have purchase the property. Is Beazer Mortgage and Beazer Homes liable for not disclosing this information? I looked through all my paperwork and there is no mention of city taxes. I know of six other owners with the same problem. If any one has an answer, we would appreciate it very much!
   -- One other thing . . . the builder (Beazer Homes) has also lowered its sales price around $100,000! I asked my sales rep. when I bought . . . would this ever happen? I was told absolutely not. Unfortunately, I don’t have this in writing. Any legal ramifications for this or am I just out of luck?
   Thanks, Wendy

   Posted by  on  07/12  at  07:01 PM

10. Thats not all beazer is being investigated against they really are not a good quality home builder at all if youre in virginia maryland or washington dc area buying real estate you should skip beazer homes entirely. beazerhomereview.com

    Posted by  on  07/21  at  11:45 AM

11. Take my word never buy a beazer home, if your realtor suggests a beazer home for you get another real estate agent beazerhomereview.com

    Posted by  on  07/21  at  11:50 AM

12. Stay away from Beazer seems to work very well these days, buying a beazer is not a smart decision

    Posted by  on  07/22  at  09:49 PM

13. The more an more often I see cases like this I begin to see that some people were genuinely taken advantage of in the real estate market.

    Posted by remax business cards  on  11/10  at  10:55 PM

14. It’s simple.  When the builder, lender and title company are all owned by one entity the client simply does not matter.  It all boils down to greed.

    Posted by  on  02/09  at  10:14 AM

15. Than for the information. Really valuable

    Posted by  on  02/13  at  01:57 AM