Aug. 13 (Bloomberg) -- Beazer Homes USA Inc., under investigation by the FBI and securities regulators, led U.S. homebuilder stocks lower after the company delayed the filing of its fiscal third-quarter report to securities regulators.

The Atlanta-based company's stock fell 19 percent, extending Friday's 9 percent drop. M/I Homes Inc., a Columbus, Ohio-based rival, slid 14 percent, the second-biggest slide among stocks in the Standard & Poor's homebuilder index, which fell 5.8 percent.

The worst U.S. housing slump in 16 years is contributing to lower revenue at builders such as Beazer and M/I. The industry won't recover this year because of an increasing number of unsold houses and more restrictive lending standards, Michael Rehaut, an analyst at J.P. Morgan Securities Inc., wrote in a report today.

``The additional tightening of credit in the mortgage market will reduce the number of qualified buyers,'' Rehaut wrote. This ``could drive inventories higher and prices even lower.''

Rehaut lowered his rating today on Fort Worth, Texas-based D.R. Horton Inc., the second-largest builder by revenue, to ``neutral'' from ``overweight'' because the company is ``fairly valued relative to its peers.''

Forensic Accountants

Beazer hired independent attorneys and forensic accountants to find out if its former chief accounting officer may have improperly recorded reserves and accrued liabilities, the company said last week. The amount probably won't be ``material'' and won't affect the company's cash position, Beazer said in the filing.

The Federal Bureau of Investigation is investigating Beazer for potential fraud after the Charlotte Observer newspaper reported the company sold homes to low-income buyers who couldn't afford them, financing the purchases with mortgages based on expectations the borrower's income would rise.

The company said last month the Securities and Exchange Commission had started a formal investigation. On Aug. 1, shares of Beazer had their biggest ever decline on speculation the company may file for bankruptcy. Beazer said the rumors were ``unfounded.''

On July 26, Beazer reported a net loss of $123 million, or $3.20 a share, in the three months ended June 30 after writing down the value of its land and as revenue tumbled 37 percent to $761 million.

Beazer's shares fell $2.85 to $12.34 in New York Stock Exchange composite trading, bringing the decline this year to 74 percent.

M/I Homes dropped $3.71 to $23.09, and D.R. Horton lost 57 cents, or 3.3 percent, to $16.87. Shares of Irvine, California- based Standard Pacific Corp. fell 87 cents, or 7.5 percent, to $10.73. Shares of Dallas-based Centex Corp. fell $2.78, or 7.2 percent, to $35.63. Shares of Bloomfield Hills, Michigan-based Pulte Homes Inc., the third-biggest U.S. builder by revenue, fell $1.46, or 7.2 percent, to $18.85.

To contact the reporters on this story: Brian Louis in Chicago at blouis1@bloomberg.net; Sharon L. Crenson in New York at screnson@bloomberg.net.

Last Updated: August 13, 2007 16:25 EDT