HUD Announces $3.2 million Settlement Against KB Home Mortgage Company

WASHINGTON – The Department of Housing and Urban Development today announced it has reached a $3.2 million settlement with KB Home Mortgage Company in connection with a series of alleged violations of HUD requirements. The $3.2 million is the largest amount ever collected in the 30-year history of HUD’s Mortgagee Review Board (MRB), which takes administrative actions against FHA-approved lenders.

“I am proud to announce this landmark settlement,” said Brian D. Montgomery, Assistant Secretary for Housing-Federal Housing Commissioner, who chairs the Mortgagee Review Board. “This settlement sends a strong message that FHA will not tolerate violations of its requirements, especially when they can cause homeowners to default on their mortgages.”