National homebuilder under scrutiny.

This appears to be part of the subprime turmoil. Federal investigators have recently launched a criminal probe into the mortgage lending methods and other financial transactions of Beazer Homes. Several agencies are involved, among them HUD and IRS. They are emphasizing, though, that an investigation alone doesn't necessarily mean there has been any unlawful activity.

As we are aware, many large homebuilders nowadays have their own mortgage divisions. The idea is to offer the buyer a one-stop shop, a great concept from the business point of view. And perfectly within the rules. Now that the home loan industry is suffering from a moderate to serious turbulence, regulators are beginning to look closer into the builder-lender affiliation. That, and I'm sure they are peeking under several other rocks, too.

One of the aims of this probe is whether the homebuilder's lending division was too aggressive in pushing loans on borrowers who really couldn't afford them. Another is that loan applications may have been massaged to ensure qualification. A newspaper in North Carolina reported just the other day that a curiously high foreclosure wave has hit a few of the builder's developments there. Could be the declining market prompted them to become overly persuasive in making deals. We'll find out down the road what went on.