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BOA and CFC deal, makes some more sense now

By Jeffrey Tumbarello

Services for Real Estate Pros with South West Florida Real Estate Investment Association

February 10, 2008 01:34 PM

http://www.realestatejournal.com/regionalnews/20080204-kingsbury.html?mod=RSS_Real_Estate_Journal&rejrss=commercial

Quote:

Beazer Homes USA Inc. is getting out of the mortgage-origination business and has inked a marketing-services deal with Countrywide Financial Corp. that deemed the nation's biggest mortgage lender the home builder's preferred loan provider.
The builder is also pulling out of five markets, the result of a corporate review begun six months ago.

Beazer President and Chief Executive Ian McCarthy said the deal will allow the company to focus on home building. "Given the increasing complexities in mortgage financing today, we believe working with an established leader in mortgage lending makes the most sense for our homebuyers and our business," he added.

As part of the deal, Beazer is ending its related mortgage services relationship with Homebuilders Financial Network LLC.

Beazer hasn't determined the size of costs and charges related to the mortgage-business closure.

Regarding the footprint retrenchment, Beazer said it will eventually get out of the Charlotte, Cincinnati/Dayton, Columbia, S.C., Columbus, Ohio, and Lexington, Ky., markets. The company will finish all homes under construction and will honor all warranties. The company noted it is evaluating its land holdings and inventory in those markets to determine the appropriate methods and timing for disposition.

The home builder said last week that new home orders for its fiscal first quarter, which ended Dec. 31, fell 29%, while the cancellation rate rose to 46% from 43%

when this thing turns, it will be nice little stream to harvest from
notice where they are not pulling from? FL!

wonder how long this deal was in the works

Could be some Litigation as a result of this

when this thing spins in a little bit BOA will be in good shape
_________________
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BOA and CFC deal, makes some more sense now

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