Beazer To Refund Millions To NC Borrowers

MARTHA WAGGONER

RALEIGH, N.C. (AP) — Beazer Mortgage Corp., which ceased operations more than a year ago, will refund $2.5 million to more than a thousand borrowers in North Carolina as part of a settlement over claims the Atlanta-based company violated state lending laws, state banking and company officials said Tuesday.

The banking commissioner's office said it investigated Beazer in 2007, finding "numerous and serious violations" of state lending laws.

"We believe that many homeowners were sold loans from Beazer Mortgage that violated North Carolina law," said Mark Pearce, deputy commissioner of banks. "These homeowners will receive a substantial refund of fees we believe were collected illegally."

The North Carolina Office of the Commissioner of the Banks said the average refund will be more than $1,500 and will be disbursed within the next 60 days. Eligible borrowers don't have to take action to receive the money.

Beazer Mortgage, a former subsidiary of homebuilder Beazer Homes USA Inc., exited the mortgage business in February 2008. The builder now has a lending partnership with Bank of America.