Beazer to Pay $53 Million in Mortgage Settlement

At least one home builder is still feeling the full effect of the mortgage bubble implosion — and this time, the wounds were self-inflicted. For builder Beazer Homes USA (BZH: 1.80 -1.64%), news Wednesday of a costly settlement was not the first sign of trouble out of its mortgage lending division. Beazer Homes and its mortgage origination arm Beazer Mortgage agreed to pay $5m to the US and up to $48m in contingency payments to homeowners affected by allegedly fraudulent mortgage practices. The settlement resolves allegations... more»

First Federal of California Nears $1bn in Modified Loans

First Federal Bank of California is reporting that the bank saved more than 2,000 homes from foreclosure by modifying $957m in loans beginning in December of 2007. By offering borrowers a fixed interest rate through 2014, which keep payments low for the next five years, four out of every five modified loans are current and performing.  First Federal, which is owned by First Federal Financial Corporation, credits their ability to reach borrowers before they fall behind on their monthly payments for the success of the program. “We contacted borrowers before... more»