Homebuilder KB Home (KBH) reported lower-than-expected quarterly earnings, causing its stocks to fall to the lowest level in a year and a half. Per Bloomberg:

The Los Angeles-based homebuilder posted net income for the three months through August of $28.4 million, or 28 cents a share, compared with $27.3 million, or 30 cents, a year earlier.  

“We anticipated some minor delays,” KB Home Chief Executive Officer Jeffrey Mezger said on a conference call with analysts today. “However, we experienced far more paperwork-processing and approval issues than we expected with the launch. The initial disruption is now behind us and while we have more work to do in fine-tuning this new business, we expect a smoother closing process within the mortgage venture going forward.”

The builder’s stocks finished the day down 5.60%, while the HW 30, HousingWire’s exclusive list of mortgage related stocks, completed the say up .75%.