Feds probing lending at Beazer (home builder/lender)-report

[UpInArms]

Source: Reuters

NEW YORK, March 27 (Reuters) - U.S. authorities are investigating the lending practices and some other dealings at Beazer Homes USA Inc. (BZH.N: Quote, Profile, Research), one of the largest U.S. home builders, BusinessWeek reported on Tuesday, and Beazer's stock fell nearly 17 percent in after-hours trading.

Beazer Homes said in a statement it could not comment on or verify any investigation, but added, "However, we will fully cooperate with any investigation by any government agency."

BusinessWeek said the North Carolina field offices of the Federal Bureau of Investigation, the Internal Revenue Service and the Justice Department recently opened a joint probe into the home builder's lending practices. Beazer is based in Atlanta, Georgia. It is the sixth largest U.S. home builder and focuses much of its business on first-time home buyers.

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The Observer's investigation alleged that foreclosure rates in several Beazer developments ran at around 20 percent, compared with the national average of 3 percent. At the time, Beazer said in a written statement the high foreclosure rates were an anomaly, BusinessWeek said.

Read more: http://www.reuters.com/articlePrint?articleId=USN2723076220070327