D.R. Horton sued over lending practices
National home builder D.R. Horton is being sued by one of its customers, who alleges the company participated in unfair mortgage lending practices, according to a Securities and Exchange Commission filing by the company.
The lawsuit, filed in United States District Court for the Southern District of Georgia, alleges the company violated “Section 8” of the Real Estate Settlement Procedures Act. The lawsuit was filed in June by John Yeatman against D.R. Horton and its lending division, DHI Mortgage Co.
The company is accused of effectively requiring customers to “use our affiliated mortgage company to finance their home purchases by offering certain discounts and incentives,” the company said.
“We believe the ultimate liability, if any, will not have a material adverse effect on our financial position or operations,” the company said in the filing. “We believe the claims alleged in this action are without merit and will defend them vigorously.”