Refunds for Bad Mortgages
Beazer Mortgage Corp, the home financing arm of Beazer Homes USA, Inc, has agreed to refund more than 1,500 North Carolina borrowers, including borrowers in Charlotte, NC. The grand total of the agreement is $2.5 million in refunds.
Back last year, Beazer Mortgage Corp was involved in a local scandal with alleged mortgage fraud that ended with Beazer surrendering their North Carolina mortgage license and leaving the state. This also caused a major black eye on the company and impacted other Charlotte home builders.
Mortgage fraud is nothing new, and the news media has taken every opportunity they can to use the term. While today the term “mortgage fraud” is used to practically describe any mortgage that isn’t a conventional mortgage from the 1960’s, the fact is that there are serious cases of mortgage fraud out there.
At least in this case, some home buyers in the Charlotte area will get some help. Although, I doubt it will make a major impact on the economy, local housing market, or for those facing a foreclosure.