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KB Homes Infomercial - Remembering Mortgage Fraud
Cisneros partner in Lago Vista was Bruce Karatz, highest paid CEO in the country with $232 million compensation package. Karatz:
realize how easy it is to buy
How broad the qualification is
Its a life changing experience that we create.
View Ex-HUD Secretary HenryCisneros KB Home Infomercial |
KB Home Feature KB Home/Kaufman and Broad
KB Home - The most investigated home builder in the nation
continues pattern of building defective homes
FTC & HUD Investigations Continue
KB Homeowners File a complaint with the Federal Trade Commision Take 5 minutes of your ime and submit a complaint about your builder.
Important: file two seperate complaints: Please fill out an additional Special HOBB Complaint form and mail it to the FTC, Enforcement Division
U.S. Rep. Charlie Gonzalez pushes for answers in KB investigation
KB Home & HUD's $20M Mirasol Fiasco under investigation. Special Express News Report - Amererican dream now homeowners' nightmare "Sixty-six of the lease-purchase houses now are vacant and the purchase program has left many residents disgruntled and concerned about construction cost-cutting and use of lower-grade materials."
KB Homeowners are entitled to extended warranty without Binding Arbitration Requirement
KB Home to Pay $2 Million Penalty for Alleged Violations of FTC Order
The modified consent decree, which replaces the consent decree entered in 1991, resolves the Commission’s allegations that KB Home violated the prior order. It enjoins KB Home from violating the 1979 consent order and requires KB Home to: 1) modify the dispute resolution provisions of existing warranties to comply with the 1979 order; 2) comply with the warranties as so modified; 3) extend for one year the two-year warranty coverage for major home components for homeowners whose homes were delivered during 2002 through 2004; and 4) reimburse homeowners for fees they had to pay to arbitrate warranty disputes in alleged violation of Part III.B of the order. In addition, the decree will require KB Home to pay a civil penalty of $2 million to settle the Commission’s charges that it violated the order. Read more...
EDITORIAL: ONLY IN
AMERICA
!
KB made a Lemonade Empire out of Lemons
Finally some of the true facts are beginning to emerge about KB’s opportunistic benefits, compliments of federal taxpayers.
We as taxpayers need to ask elected official, HUD and VA how KB Home was allowed to continue building and selling 300 additional homes on the bomb-ridden land despite extensive public exposure after it was designated a million dollar, #1 US Army Corps of Engineers priority clean up site. Please write your elected officials and request answers as to why HUD and the City of
Arlington
, after being informed allowed construction to continue unimpeded.
Truly it can be said that KB Home made a Lemonade Empire from Lemons that gave a “BOOM” to the homebuilding industry like creative Corporate America has ever seen. Corporate Welfare is alive and well in
America
.
RELATED NEWS ARTICLES:
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Elizabeth Dole, Commissioner of the Federal Trade Commission,
Speaks to The National Association of Home Builders
January 21, 1979 “….In the Kaufman and Broad investigation, FTC staff has them selves alleged, on the basis of professional inspections, a gamut of poor construction practices... the order would prohibit Kaufman & Broad from selling or delivering housing that is not built in accordance with adequate standards of workmanship."

KB Homeowners Fighting Mad
Homeowners express anguish and outrage, click on picture to see more...
KB Home - 1979 FTC Consent Order – See the full FTC Consent Order
FTC and KB Home – Read Elizabeth Dole’s speech to the National Association of Builders
KB Buy Back Proposal – See one of the early proposals of KB the buy back a home.
KB Home Pays $595,000 Fine - In 1991 KB Home again violated the 1979 FTC order by once ahain failing to make warranty repairs in a timely manner.
KB Home under investigation
Lettter to Senator Phil Gramm of Texas"..HUD is spearheading a probe based on allegations involving its approval of the subdivision, and of KB Home's 10-year protection warranty."
HOBB Opinion: Why KB Profits are Greater
Special Reports: KB Home Foreclosure Rate More Than Double Other Builders.
Records show that KB foreclosures are as high as 30%.
KBHOMESUCKS.COM - The #1 KB Homeowners Gripe Site
Special Report - Top Corporate Hate Web Sites
KB Home Stock continues to fall:
10/21/05 KB Home Stock Down $21.17 - KB Home Stock down – Can Martha Stewart Help
8/7/05 KB Home Stock Down $10.95 – Foreclosures are up - FTC & HUD’s Flood of Complaints Prompt Investigations
MUST SEE - KB HOMEOWNERS PROTEST AND GET RESULTS
See photos :
KB Home Common Construction Defects
KB Buys Back Homes
KB Makes Some Repairs
Send us your KB-defect photos and story

"Funk rents a 3-year-old, $80,000 house that has cracks between the wall and ceiling
wide enough for her to stick her hand through." Soggy-subdivision probe digs into approval data By Adolfo Pesquera Express-News
BEWARE OF KB’S DEALTO SELL YOUR HOME OR BUY IT BACK!
KB didn't buy the Martinez home back, instead sued the couple
SEE: Snake Bitten
Beware of Binding Arbitration Clauses!
New KB Home buyers & All buyers of homes with FHA & VA insured loans avoid arbitration
Former KB Employee's Advice
CEO Bruce Karatz sheltered from the ugly truth
Found on KBHomesucks.com posted july 18, 2005 - "If you want results, here is the best way I know of: send a certified and/or registered letter to the CEO Bruce Karatz (make somebody sign for it!) If you can provide pictures, all the better. And be sure to call there every single day to follow up, 310-231-4000. Either ask for Bruce or his personal assistant. He is actually pretty unaware of things (they keep him sheltered from the ugly truth). The "local" people in whatever state you are located do not want Bruce to know there are any problems, kind of like "The Emperor's New Clothes". That is also why the locals try to pretend that the corporate office has no jurisdiction, because they don't want the heat that will come down if they are busted. How do I know this? I used to work there. The usual system of complaints is set up so that everything has to be handled at the local level (sales manager & division president have the final say). But watch what happens when the L.A. corporate office starts breathing down their necks - they usually cave in & give you what is reasonable. I have seen this happen a few times. Initially, Bruce's assistant will try to brush you off, or pretend like they can't do anything. But trust me on this - ALL paychecks for ALL employees come directly from the L.A. office, and if you become a pest, they will at least look into the problem you are having. I have seen this work for returning deposit checks.
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Ex-Secretary of HUD, KB and Contaminated Land?
San Antonio Lightning - Canal De Amor
Satire - Henry Cisneros Proudly
Presents -
Canal
De Amor
State-of-the-art building methods allow us to erect a home in as little as two days. Foundations are optional, and require an extra three hours... So step into the future with a Cisneros custom built home. To see one of our model homes, drive south seven short miles on I-33. Turn left at EPA junction. Follow the buzzards to our beautiful new sub-division. Remember, if you pass the "danger signs" you've gone too far. Affordable Housing At What Price? What a Dump!
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CURRENT NEWS AND EVENTS
April 24, 2003 - KB Homes - Shoddy Building in the Housing Boom?

The industry's critics now warn that builders face a rising tide of consumer dissatisfaction. In their rush to put up new homes, some skimped on materials and labor costs, industry watchdog groups charge. "You can break into some of these new homes with a razor blade," says Robert Batcheller, a former builder who says he quit the industry last year, disgusted by some of practices he saw.
"In the past 10 years, cars have gotten safer and more reliable, and homes have gone in the opposite direction," Batcheller says. "Expect a big backlash against builders."
Sep 6 2002 Editorial: Housing debacle warrants scrutiny San Antonio Express-News The contractor for the project is Magi Realty. Its subcontractor is KB Homes, a major homebuilder that has said it will take care of the problems. .... But they were supposed to replace aging, dilapidated public housing. Given the state of things less than a year after their construction, it won't take long for the new homes to achieve that aging and dilapidated look.
Aug 30 2002 And even MORE on KB Homes! SAHA slates hearing on Mirasol Homes By Ron Wilson San Antonio Express-News Problems at the $50 million single-family-homes development were detailed Aug. 12 in a San Antonio Express-News story [Fault found with housing project] that told of houses without back doors or windows, falling cabinets, broken doors and listing porch beams and a contaminated landfill that apparently escaped the notice of planners.
Aug 30 2002 KB Homes in the news. Again. Arlington: Builder sues over explosive Woman says she found old bomb near home; suit says it was planted By JASON TRAHAN / The Dallas Morning News. "Ms. Lewis, a plaintiff in one of the homeowners' lawsuits, said that before KB Home filed suit against her, company officials tried to persuade her to sign an affidavit swearing that she helped plant the bomb on Jan. 26 and that she has never found any of the practice bombs on her property or anywhere else in the subdivision. She said company officials told her that if she signed the affidavit, they would buy her $150,000 house back at about a $30,000 profit."
June 22, 2001 $10 million suit claims damage to homes from mold in Patterson By MICHAEL MELLO BEE STAFF WRITER PATTERSON -- Eighty-six residents are suing KBHomes, alleging that shoddy construction left homes susceptible to water seepage and mold contamination......The lawsuit is being drafted one year after Heartland Ranch homeowners complained to the City Council that repairs already had dragged on for two years or more. NOTE: Yet another example for the need of a lemon law.
June 7, 2001 KBHomes Homeowners Take Complaints to Former HUD Secretary, Henry Cisneros. "According to Seaman, the company is not currently under investigation in relation to to this group of homeowner's concerns. " See Related Story:
June 1, 2001 Soggy-subdivision probe digs into approval data By Adolfo Pesquera Express-News Business Writer KB Home's troubled Northampton development has become the target of a federal investigation amid allegations that the developer-homebuilder may have falsified information to obtain U.S. Department of Housing and Urban Development approval.
June 1, 2001 Soggy-subdivision probe digs into approval data By Adolfo Pesquera
Express-News Business Writer KB Home's troubled Northampton development has become the target of a federal investigation amid allegations that the developer-homebuilder may have falsified information to obtain U.S. Department of Housing and Urban Development approval.
See Also:
June 1, 2001 Lettter to Senator Phil Gramm of Texas from the Veteran's Administration concerning the North Hampton Subdivision.
June1 2001 Letter from the TNRCC PDF Format concerning the North Hampton Subdivision to Jaent Ahmad, HomeOwners for Better Building.
Page 1, Page 2, Page 3
May 26, 2001 KBHomes in the news again. Eyewitness News Wants to Know. You can see the video clip concerning a KB Honeowner in San Antonio, TX. The owner asked to invoke a Lemon Law and requested his home to be bought back. KB's statement said the situation has been resolved. Was the home bought back or repaired? We will find out. [Requires Real Media.]
May 4, 2001 Added to the KBHomes page: Lago Vista Subdivision Disclosure Statement to potential new homeowners. "You hereby agree to release Kaufman and Broad from any claims, action, causes of action, personal injury, death or property losses related to the quality of drinking water in Lago Vista."
May 1, 2001 San Antonio Lightning: Affordable Housing At What Price? By Janet Ahmad President HomeOwners for Better Building. "You agree and acknowledge that Kaufman and Broad is not responsible or liable for any environmental conditions at Lago Vista that are the result of the environmental contamination at Kelly AFB, including but not limited to the polluted groundwater. " ---Lago Vista Disclaimer.
May 1, 2001 San Antonio Lightning: (Satire) Henry Cisneros Proudly Presents
Canal De Amor. [Henry Cisneros of KBHomes] Presenting the newest in home development...an affordable, probably non-toxic, housing community for the San Antonio market!
April 22, 2001 Eroding trust. New home buyers vent frustrations at builder [KBHOMES] By Ian McCannThe Dallas Morning News. "One of the biggest problems, homeowners said, is poor customer service."
WFAA CH 8 News Dallas: KBHomes Homeowners take their complaints to the Frisco City council. The Proposed Texas Home Lemon Law is mentioned. You can view the news on April 16 and April 17at:
April 17, 2001 K&B in the news again in Dallas: Homeowners Speak Out Against Builder FRISCO ó Dozens of angry homeowners in Frisco are calling for the city to take action against their builder, KB Home. ... Meanwhile, a homebuyerís lemon law is being considered by state lawmakers in Austin.
April 17, 2001 Quote of the day: "Any time we get a complaint or work order from a home we address it in a timely fashion," said David Christian, with K-B Home." Homeowners Accuse Builder of Shoddy Work Reporter: Brett Shipp
April 07, 2001 Kaufman and Broad (KBhomes) homeowners shut down an open house in San Antonio using the only tool available to them. Picketing. This is called the Texas 2 by 4.
Feb 12, 2001 Added to the Kaufman Page: Prospective Homebuyers, Protesters Mix At Grand Opening Kaufman & Broad Subdivision Scene Of Homeowner Protest (KSAT-TV San Antonio, TX
"Along with prospective buyers for the newly built houses in the city's South Side, protesters arrived to air dissatisfactions with their own Kaufman & Broad homes located elsewhere in the city. Homeowners from the Northhampton subdivision in the city's Northeast Side have filed complaints with the builder, alleging shoddy workmanship. "
Feb 10, 2001 Added a link to the Link Pageto the Federal Trade Commision complaint form. Take 5 minutes of your time and submit a complaint about your builder. This will help in the long run.
Jan 18, 2001: Posted to the the Kaufman and Broad (KB Homes) page: "Los Angeles-based Kaufman and Broad announced Wednesday it is changing its name to KB Homes. We think itís great that our company has established such trust and familiarity with our customers that they recognize us by this shorter, friendlier name," company Chairman and Chief Executive Officer Bruce Karatz said recently. "The name KB Home is a warm way to reflect what we offer." Warmly reflect on the Kaufman Page.
Jan 12, 2001: Posted to the Mold and Kaufman & Broad Page: Mold Forces Families Out Of Homes. Families Demand Answers From Home Builders The Flanigans were among a group of about a dozen residents of a Kaufman & Broad housing tract in Dixon who picketed a company sales office Sunday on Christine Drive in Vacaville. They all expressed deep concerns about moisture penetration on the foundations of their Dixon homes that has led, they say, to family illnesses and damage to their $200,000-plus structures.
Dec 22, 2000 Posted AnotherNorth Hampton Subdivision draft buyout!. See Kaufman and Broad looks at buying out homeowners for background information. "K & B will purchase your home for your original purchase price and the value of the improvements listed below....."
Oct 29, 2000 North Hampton Subdivision pickets. See Kaufman and Broad looks at buying out homeowners for background information.
Oct 26, 2000 American Homebuyers Protection Act. Sponsor: Rep Gonzalez, Charles A. Prohibits a person engaged in the construction of new homes from: (1) requiring a home purchaser to enter into a mandatory arbitration agreement as a condition precedent to entering into a purchase contract; and (2) offering a home purchaser a contract which includes a mandatory arbitration agreement unless such agreement is a separate agreement.
Oct 26, 2000 Added to Builders in the NewsAC placement fuels hot fight [San Antonio, TX] By David Anthony Richelieu Express-News Staff Writer. The City Council is expected to resolve a dispute today over whether the stacking of air conditioning units over electric hot water heaters should be allowed to continue in new homes and apartments.
"....the city has a moral obligation to change a potentially dangerous practice, adding that it was only a matter of time before a water heater short circuit would trigger a larger fire and put people's lives at risk." Press Release HomeOwners for Better Building.
Oct 18, 2000 Added to Builders in the News Federal Trade Commission, June 1991: KAUFMAN AND BROAD HOME CORPORATION AGREES TO SETTLE FTC CHARGES BY PAYING A $595,000 CIVIL PENALTY "The Federal Trade Commission announced today that Kaufman and Broad Home Corporation (K&BHC) of Los Angeles, a homebuilder, has agreed to settle charges that it violated a 1979 FTC order by failing to make warranty repairs in a timely manner."
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Disclaimer
The information on this site and all parts of the Homeowners For Better Building site is for information purposes only. By accessing this site you agree to immediately contact Janet Ahmad to report any incorrect data or misrepresentations of facts.
HUD - History Making KB Home Fine
HUD ANNOUNCES $3.2 MILLION SETTLEMENT AGAINST KB HOME MORTGAGE COMPANY
Largest settlement in history of Mortgagee Review Board
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. Read more... |
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Home on the bombing range
Wednesday, 16 June 2004
Inman News - Military history still haunts development site
Unexploded bombs that may be present at the site could have the potential to injure or kill people, according to Army Corps of Engineers reports. In 1983, during the construction of a 35-acre mobile home park at the former Five Points site, work was halted when a practice bomb was discovered there. A cleanup on that site followed, and an estimated 3,000 practice bombs were recovered from that portion of the site… Other bomb types were reportedly dropped at the site including the 100-pound M38A2 practice bomb and practice versions of the M47 chemical bomb…
According to court documents, King-Lewis stated in a sworn affidavit that she was approached in 2002 by Victor Toledo, a KB Home representative who allegedly ""did attempt to coerce, bribe, induce, manipulate and persuade me to sign…false affidavits."" She also reported that Toledo ""was unquestionably clear in his attempts to harass and force my family and me into submission by the offer of financial compensation as an inducement, in exchange for my signature on a false affidavit, which would be used to give witness against Janet Ahmad in his pursuit of future criminal actions against her." |
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KB Homes
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Tuesday, 31 January 2012 |
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1-Star Stocks Poised to Plunge: KB Home?
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, homebuilder KB Home has received the dreaded one-star ranking... What do you think about KB Home, or any other stock for that matter? If you want to retire rich, you need to protect your portfolio from any undue risk. Staying away from dangerous stocks is crucial to securing your financial future, and on Motley Fool CAPS, thousands of investors are working every day to flag them. CAPS is 100% free, so get started! |
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More Bad Walls Built by San Antonio Builders |
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KB Homes
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Sunday, 18 December 2011 |
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More cracks found in subdivision walls
Six of the 14 retaining walls in the upscale Heights of Crownridge development still lack permits and construction has been on hold for some residential lots since November. Two of the retaining walls are cracked, and one of those was deemed unsafe by an engineer and had to be lowered, according to documents on file with the city. That wall sits on the property's southeast corner and was not built to specification. It was designed by the same engineer and built by the same construction company as the failed Rivermist wall. |
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No New Home Sales - people don't have credit and no down payment - And Builders Wonder Why? |
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KB Homes
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Friday, 02 September 2011 |
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New-home slump keeping door shut on U.S. recovery
Plagued by too many houses and too few buyers, 2011 is shaping up to be the worst year on record for new-home sales. The slump is pushing the key home-building industry into its fifth year of decline and keeping the U.S. economy from a rebound... Many economists don't see a significant rebound occurring until housing is fixed...Shares of Los Angeles-based KB Hiome, for instance, have fallen so much that the company is valued by Wall Street at less than the cash on its books. The company has continued to build despite the head winds, announcing in August that it had opened new homes for sale in the San Francisco Bay Area.
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Protests Over KB Home Biilding on American Indian Sacred Land |
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KB Homes
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Friday, 26 August 2011 |
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City, builder mulling solutions for sacred knoll: Four dozen protest at City Hall to stop construction project
City officials are working with a builder to determine whether an Eastside housing project can be altered to preserve a knoll where Native American remains were discovered earlier this month. Vice Mayor Don Lane, who attended a private meeting Monday between city officials and KB Home, said he believes the company would consider selling or setting aside the parcel where the remains were found even though it is designated for the most premium home among 32 planned for the site. |
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KB Attempts the Unthinkable - Houses Over Ancient Native American Remains |
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KB Homes
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Friday, 26 August 2011 |
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Protect Sacred Places: KB Home disturbs Native American human remains in Branciforte Area
As few in Santa Cruz are currently aware, a developer has been in the process of destroying a beautiful wild area in Santa Cruz, locally known as "Market Street Field", which is also the location of a 6,000 year old Native American burial and village site. The project is a 32-unit residential subdivision called "Branciforte Creek - the Comfort of Green Living". On or around August 2nd, the travesty of destroying a beautiful, ancient place sunk to another level when the skeletal remains of a young Native American child were dug up during initial work in the northern part of the site, known as "the knoll". |
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The Motley Fool: Investors Beware - KB Home leads insutry in bad news |
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KB Homes
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Friday, 15 July 2011 |
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The Motley Fool: KB homes and shares were built on quicksand |
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KB Homes
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Thursday, 30 June 2011 |
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KB Home Shares Plunged: What You Need to Know
Shares of homebuilder KB Homes fell 16% today when it found out its homes and shares were built on quicksand. |
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KB Home pay up to $240 Million in settlement |
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KB Homes
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Saturday, 18 June 2011 |
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Home Builders to Settle Las Vegas Land Dispute
In Securities and Exchange Commission filings Thursday, KB Home reported it would pay from $216 million to $240 million, including fees, to a group of lenders led by J.P. Morgan Chase & Co. Beazer said it would pay from $15.7 million to $17 million, and Toll said it planned to enter into a "cash settlement" of an undisclosed amount. The settlement plan indicates a conclusion is nearing for a long legal fight in federal courts in Las Vegas over an ambitious land deal that was brought down by the housing crisis. A person familiar with details of the plan said that the total settlement is worth from $330 million to $340 million and that Toll will pay from $30 million to $40 million.
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KB Home Built Mirasol A Huge Waste of Federal Tax Dollars |
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KB Homes
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Tuesday, 07 June 2011 |
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Mirasol: A chance to rebuild
The Mirasol houses were completed in 2001, and many of the structures were quick to develop major problems... A year after the family bought the house, that vision began to fade, replaced by the appearance of cracks in the walls, a steep slope in the living room floor and doors that wouldn't properly open or close... Today, the three-bedroom house and the Mirasol Homes neighborhood it once advertised stand as a sad paradox. Built in 2001 with $20 million in federal housing funds intended to vault the working poor into homeownership, the West Side development turned into the kind of blighted neighborhood it was supposed to replace. |
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KB Home’s Federally Funded Public Housing Scandal of the Century Settled |
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KB Homes
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Tuesday, 24 May 2011 |
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SAHA, homeowners agree to settle in Mirasol case
We are thankful to have come to a mutually beneficial agreement and put an end to this four-year legal case, says SAHA Chairman Ramiro Cavazos, following a special meeting of the board. This settlement allows us to focus on moving forward and rebuilding the community. In 2001, the contractors received $18 million to build 247 single-family homes in the Mirasol neighborhoods for low-income, first-time homeowners. However, a group of homeowners began reporting problems with the homes. In 2007, SAHA filed the lawsuit and was eventually joined by 66 Mirasol homeowners in the lawsuit. SAHA and the homeowners sought to recover damages and to receive funds that could be used to begin rebuilding Mirasol homes. |
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KB & BofA on Shaky Ground |
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KB Homes
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Friday, 08 April 2011 |
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Is KB Home's mortgage partner, BofA, getting cold feet?
KB Home fears the joint venture it built with Bank of America is on shaky ground, according to securities filings. The company said BofA came forward suggesting a restructuring of the parties' joint venture. Over the course of the past several years, the joint venture allowed the firms to provide homebuyers with mortgage and banking services. |
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