A class-action lawsuit was filed last week by California borrowers against KB Home, Countrywide Financial Corp. and several of their wholly-owned subsidiaries. The case was filed in connection with the sale of KB Home residences financed by Countrywide. The complaint alleges that the defendants charged for settlement services on federally related loans provided by a joint venture referral arrangement between KB Home and Countrywide. The plaintiffs allege that the joint venture was nothing more than a sham arrangement designed to circumvent RESPA's prohibition of collusion and kickbacks in connection with the provision of real estate settlement services.
More... 
