The Department of Housing and Urban Development continued its crackdown against violations of FHA underwriting rules and Real Estate Settlement Procedures Act regulations, resulting in more than $3 million in settlements. The $3.2 million settlement with KB Home Mortgage Co. was announced on July 7, a week after its parent company, KB Home in Los Angeles, announced the sale of the mortgage subsidiary to Countrywide Home Loans. KB Home was the first homebuilder in…