KB Home Selling Mortgage Unit

KB Home (KBH Quote) will sell the assets of its mortgage unit KB Home Mortgage to Countrywide Home Loans, a division of residential lender Countrywide Financial (CFC Quote).

The companies also formed an equally owned joint venture that will make residential loans to KB Home customers. The terms of the agreement weren't disclosed.

Countrywide's home loans will now be available to KB homebuyers through counselors serving KB Home's U.S. communities. Countrywide will have day-to-day oversight of the joint venture.

This year, KB Home expects to deliver nearly 40,000 homes in 13 states and in France, where it's among the largest homebuilders.

Shares of KB Home were up 16 cents to $75.25. Countrywide was up 25 cents to $38.66.