RobertB
October 11th, 2007, 01:05 PM
Beazer Homes reveals violations
By Julie Hairston
The Atlanta Journal-Constitution
Published on: 10/11/07
Beazer Homes USA, the troubled Atlanta-based homebuilder, said Thursday that a five-month internal investigation found evidence that employees violated federal regulations governing its mortgage loan business "dating back to at least 2000."
The company also said it will have to restate financial earnings results for much of the past decade. Those restatements will likely boost net earnings cumulatively, but will cut profit for its fiscal 2006 year, Beazer said.
In addition, Beazer said home closings fell 39 percent for the quarter ended Sept. 30 vs. the same period a year earlier, while new home orders fell 52 percent. It cited higher cancellation rates due to tightened credit markets.
Beazer's shares, beaten down in recent months, rose about 5 percent in morning trading.
The company said it will try to negotiate a settlement with federal regulators over the mortgage violations, estimating it can come to terms that will cost between $8 million and $15 million.
Beazer's troubles stem from slumping housing market conditions since 2006. It was also hit earlier this year by allegations of improper practices in its mortgage loan unit.
http://www.ajc.com/services/content/business/stories/2007/10/11/beazer_1012.html?cxtype=rss&cxsvc=7&cxcat=6
By Julie Hairston
The Atlanta Journal-Constitution
Published on: 10/11/07
Beazer Homes USA, the troubled Atlanta-based homebuilder, said Thursday that a five-month internal investigation found evidence that employees violated federal regulations governing its mortgage loan business "dating back to at least 2000."
The company also said it will have to restate financial earnings results for much of the past decade. Those restatements will likely boost net earnings cumulatively, but will cut profit for its fiscal 2006 year, Beazer said.
In addition, Beazer said home closings fell 39 percent for the quarter ended Sept. 30 vs. the same period a year earlier, while new home orders fell 52 percent. It cited higher cancellation rates due to tightened credit markets.
Beazer's shares, beaten down in recent months, rose about 5 percent in morning trading.
The company said it will try to negotiate a settlement with federal regulators over the mortgage violations, estimating it can come to terms that will cost between $8 million and $15 million.
Beazer's troubles stem from slumping housing market conditions since 2006. It was also hit earlier this year by allegations of improper practices in its mortgage loan unit.
http://www.ajc.com/services/content/business/stories/2007/10/11/beazer_1012.html?cxtype=rss&cxsvc=7&cxcat=6