Beazer Homes Hitting More Turbulent Waters

(revised 8-11-07; 8-16-07)
The Charlotte Observer is reporting today:

• "Shares of Beazer Homes USA Inc. fell sharply Wednesday amid worries about the ability of builders to pay their bills as subprime lending woes expand to other parts of the market and push housing prices down. [...] As for the [federal investigations] involving the company, Beazer Homes previously disclosed that it received a subpoena from the United States Attorney's office in the Western District of North Carolina, seeking the production of documents focusing on the company's mortgage origination services. The investigation followed a March Observer series that found Beazer's mortgage arm arranged larger loans than some customers could afford, among other problems. The Observer found Beazer's sales practices contributed to an unusually high foreclosure rate in its Mecklenburg developments."

For more, see Beazer shares plunge on rumors.

For later stories, see:

• Beazer: Mistakes possible in filings (Company charges former accounting chief for having `caused' wrong figures) - (The Charlotte Observer - 8-11-07).
• Beazer Homes on review for downgrade due to accounting woes - Moody's (Forbes - 8-14-07)
• Beazer Homes Faces Problem After Problem (CNNMoney - 8-16-07)

Go here for prior posts and links to The Observer's investigative reports on Beazer.