Beazer to pay $50M for mortgage fraud

CHARLOTTE, N.C., July 2 (UPI) -- U.S. home builder Beazer Homes USA agreed to pay $50 million to settle various mortgage fraud abuse charges, court records show.

The company accepted the settlement with a document stating it "accepts and acknowledges that it is responsible for the criminal acts of its former employees," The Charlotte ( N.C.) Observer reported Thursday.

Investigators filed charges in U.S. District Court in Charlotte Wednesday.

The various mortgage abuses included lending agents overlooking a home buyer's gross income, but asking, instead, if the home buyer made enough to cover the mortgage. Others offered to cover the down payment for low-income home buyers.

Agents then raised the price of the home to offset the cost of the so-called "gift," the newspaper said.