Beazer Homes Inc. (BZH)

[Zephyr]

HUD Official: Govt Settlement With Beazer Too Lenient -CNBCFont size: A | A | A
7:21 AM ET 9/23/10 | Dow Jones
DOW JONES NEWSWIRES

The U.S. government was too lenient with a $53 million settlement with Beazer Homes USA Inc. (BZH) in 2009 over the builder's subprime lending practices, the Department of Housing and Urban Development's inspector general has asserted, CNBC reported Wednesday, citing documents it obtained.

HUD Inspector General Kenneth Donohue said the settlement, between Atlanta-based Beazer and the Justice Department, "provided too little restitution" to affected homeowners. Donohue has complained that U.S. Attorney General Eric Holder has not responded to a letter he sent in July regarding the matter. Donohue did not propose an alternative amount for a fine, the network said.

Representatives of Beazer and the DOJ did not respond to a request for comment.

A joint federal probe by the Federal Bureau of Investigation and HUD found that Beazer's mortgage lending unit had violated federal regulations by giving government-backed loans to buyers who couldn't afford them, the Wall Street Journal reported on Aug. 28.