) recently entered into an agreement with its current preferred
National Mortgage LLC
to form a joint venture,
Home Community Mortgage, LLC
that will offer loans to KB Home's customers.
National Mortgage LLC is a subsidiary of
Nationstar Mortgage Holdings Inc.
), one of the largest non-bank mortgage providers in the U.S,
with a portfolio worth $425 billion. Nationstar Mortgage has been
managing KB mortgage banking applications since May 2012.
Nationstar Mortgage will continue to perform its existing
functions till Home Community Mortgage begins operations in late
KB Home operates through its operational business model KBnxt,
which begins construction only after a purchase agreement is
executed and the consumers are given the flexibility to design
their new homes. The new mortgage company will specifically cater
to KB Home homebuyers and will smoothen out the financing process
involved during home purchase, thus supporting the KBnxt business
KB Home has been delivering solid year-over-year top line
growth during the past few quarters. Recently, the company
announced preliminary quarter-to-date (QTD) net order for new
homes for first quarter 2013. The number of new homes ordered was
750 as of Jan 18, 2013, up 54% from 488 in the year-ago
The strong results of the company have been driven by the
housing market recovery. The rising demand for new homes has led
to a favorable situation in the housing market, where inventory
levels are dropping and prices are moving up. By providing
easier access to finance, the new joint venture deal is expected
to further boost the company's order growth.
KB Home carries a Zacks Rank #3 (Hold). Some other Zacks Rank
#1 (Strong Buy) homebuilding companies that warrant a look
MDC Holdings Inc.
KB HOME (KBH): Free Stock Analysis Report
MDC HLDGS (MDC): Free Stock Analysis Report
NATIONSTAR MTGE (NSM): Free Stock Analysis
NVR INC (NVR): Free Stock Analysis Report
To read this article on Zacks.com click here.