Beazer To Refund Millions To NC Borrowers

Beazer said in a news release that it agreed to the settlement without admitting to any violations, and declined to comment further.

As part of the North Carolina settlement, the banking commissioner's office agreed not to investigate Beazer further or take any more enforcement actions against the company.

However, there is still an open and similar investigation by the U.S. attorney in North Carolina's Western District. The company said previously that it received a subpoena seeking the production of documents focusing on the company's mortgage origination services.

"There can be no assurance that the company can conclude an agreement with the U.S. Attorney on financial or non-financial terms that are mutually acceptable," Beazer said in the news release Tuesday.

The North Carolina banking commissioner's office said it investigated Beazer in 2007, finding "numerous and serious violations" of state lending laws, especially of those involving discount points.

State law requires that discount points be paid for the purpose of reducing a borrower's interest rate. The settlement means Beazer will provide substantial refunds of those points, the banking commissoner's office said.