Hello Devan Jeyadevan:
As stated in the appnote and in the Reference Manuals, the crystal-less feature is only for USB device mode. Moreover the KL27 only supports device mode, not host.
The closest Kinetis parts that support OTG/Host/Device are KL25/KL26. Please see the document in the next link for a general comparison:
http://cache.freescale.com/files/microcontrollers/doc/fact_sheet/LSERIESKL2FS.pdf
And the product selector guide for a more extensive comparison chart:
http://cache.freescale.com/files/microcontrollers/doc/selector_guide/KINETISLMCUSELGD.pdf
Regards!,
Jorge Gonzalez
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