The mortgage subsidiary of KB Home, one of the nation's largest homebuilders, has agreed to pay $3.2 million to settle allegations it engaged in poor underwriting practices in originating Federal Housing Administration single-family loans.The Department of Housing and Urban Development said it is the largest settlement ever collected from a FHA lender. "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," FHA commissioner Brian Montgomery said. HUD cited KB Home Mortgage, based in Los Angeles, for 13 violations, including approval of loans for unqualified borrowers with overstated or incorrect income. "We are pleased to have reached a resolution on these procedural issues with HUD -- all of which have been thoroughly addressed internally by the mortgage company," said KB Home spokeswoman Kate Mulhearn. KB Home recently announced it has entered into a joint venture with Countrywide Finance Corp. and Countrywide will take over and run KBHM's mortgage operations starting Sept. 1.
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Doxo plans to fight the FTC complaint, which focuses broadly on consumer finance, but there are signs of confusion about the company's role in mortgages too.
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Members of the LGBTQ community were most likely to have experienced housing bias, according to a Zillow survey, which also found many people don't recognize how fair lending laws could help.
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Senior executives making over $151,000 would still be subject to such clauses should the rule go into effect this year.
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Christopher J. Gallo and his aide, Mehmet A. Elmas, allegedly withheld information in mortgage applications, hiding that borrowers were purchasing second home properties.
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Mortgage rates rose 7 basis points this week, Freddie Mac said, and more increases are likely following a weaker than expected gross domestic product report.
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Independent mortgage bankers lost the most money ever on every loan originated last year due to higher rates and lower volumes, an industry trade group said.
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