This is an ongoing investigation and a pending class action lawsuit against KB Home, Countrywide and LandSafe (a wholly owned subsidiary of Countrywide).
The class action lawsuit claims that KB Homes, Countrywide and LandSafe conspired to systematically, artificially and illegally rig home appraisals in KB developments in an effort to boost home values and sales prices.
The venture allowed the companies to control every aspect of a buyer's real estate transaction, putting the companies in a position to rig and falsify the appraised value of KB Home homes.
As a result, homebuyers unknowingly pay upwards of $20,000 over the actual value of their home, pushing them into inflated mortgage loans. This ultimately sets customers up for financial failure, the suit claims.
Plaintiffs claim that since 2006, KB Home built and sold 14,000 homes in the Southwest U.S., with each home selling around $250,000.
The lawsuit represents anyone in Arizona or Nevada who purchased a home through KB Home and whose loan went through Countrywide.
Name (Stock Symbol)
Countrywide Financial Corporation
Countrywide Financial Corporation originates, services and resells home loans. It is owned by Bank of America.
LandSafe, Inc., a Countrywide Financial subsidiary, provides real estate closing including appraisal and collateral valuation services, credit reports, flood determinations, title and escrow services.
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