Types Of Bankruptcy

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April 26th, 2007

Beazer board investigating, too

The audit committee of the Beazer Homes USA board of directors has launched a review of the company’s mortgage origination business, the company disclosed Thursday in a securities filing.

Federal authorities previously disclosed a criminal investigation of the company’s mortgage business by the FBI, the Internal Revenue Service and the Department of Housing and Urban Development.

Both the government and the company are responding to an Observer series, published in March, that charted how Beazer’s aggressive sales tactics contributed to an unusually high foreclosure rate in many of its Charlotte-area starter-home developments. The Observer found Beazer’s mortgage arm arranged larger loans than some customers could afford (www.charlotte.com/foreclosure). Read more



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