Case closed.Case Closed: KB Home agreed to pay $3.2 million to settle federal allegations that its mortgage unit engaged in poor lending practices. The Department of Housing and Urban Development said the settlement was the largest ever collected by its mortgage review board, which takes administrative actions against Federal Housing Administration Federal Housing Administration (FHA) Federally sponsored agency chartered in 1934 whose stock is currently owned by savings institutions across the United States. The agency buys residential mortgages that meet certain requirements, sells these mortgages in packages, and insures the lenders against loss.-approved lenders. The 13 alleged violations by KB Home Mortgage Co., involved underwriting practices such as approving loans to ineligible borrowers, approving loans based on overstated or incorrect income, and failing to include all of borrowers' debts.
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