Beazer Homes USA Inc.

A lawsuit has been filed and is seeking class action status against Beazer, accusing the home builder and its mortgage company of selling mortgages to unqualified buyers. The lawsuit claims Beazer Mortgage advised or encouraged prospective buyers to falsify information in their loan applications to obtain approval. The suit also said the company changed information on loan applications by the prospective buyers for purchasers to qualify to buy a home in the Beazer subdivision. Federal investigation allegations include abusive lending practices and high foreclosures in a number of Beazer developments. The investigation alleged that foreclosure rates in several Beazer developments ran at around 20 percent, compared with the national average of 3 percent.