Profile: PulteGroup Inc (PHM)

PulteGroup, Inc. (PulteGroup), incorporated on September 17, 1987, is a homebuilder in the United States. The Company’s subsidiaries engage primarily in the homebuilding business. PulteGroup also has mortgage banking operations, conducted principally through Pulte Mortgage LLC (Pulte Mortgage), and title operations. Homebuilding, its core business, includes the acquisition and development of land primarily for residential purposes within the United States and the construction of housing on such land. Homebuilding offers a product line to meet the needs of home buyers in its targeted markets. The Company also has one segment for its financial services operations, which consist principally of mortgage banking and title operations. Its Financial Services segment operates generally in the same geographic markets as its Homebuilding segments. During the year ended December 31, 2011, it originated mortgage loans for 62%. Centex Corporation (Centex) and Pulte Mortgage are the wholly owned subsidiary of the Company.

Homebuilding Operations

The Company through its brands, which include Pulte Homes, Del Webb, and Centex, offers a variety of home designs, including single-family detached, townhouses, condominiums, and duplexes at different prices and with varying levels of options and amenities to its customer segments, such as entry-level, move-up, and active adult. As of December 31, 2011, the Company had delivered approximately 600,000 homes. As of December 31, 2011, it conducted its operations in 61 markets located throughout 29 states. As of December 31, 2011, its Homebuilding operations offered homes for sale in approximately 700 communities. Sales of single-family detached homes, as a percentage of total unit sales, were 79% in 2011. The Company operates in six segments: Northeast, which include Connecticut, Delaware, Maryland, Massachusetts, New Jersey, New York, Pennsylvania, Rhode Island, Virginia; Southeast, which include Georgia, North Carolina, South Carolina, Tennessee; Florida, which include Florida; Texas, which include Texas; North, which include Illinois, Indiana, Michigan, Minnesota, Missouri, Northern California, Ohio, Oregon, Washington, and Southwest, which include Arizona, Colorado, Hawaii, Nevada, New Mexico, Southern California.

The Company acquires land primarily for the construction of our homes for sale to homebuyers, though it periodically sells select parcels of land to third parties for commercial or other development. It introduces its homes to prospective buyers through media advertising, illustrated brochures, Internet listings and link placements, mobile applications, and other advertising displays. In addition, its Websites, www.pulte.com, www.delwebb.com, and www.centex.com, provide tools to help users find a home that meets their needs, investigate financing alternatives, communicate moving plans, maintain a home, learn more about the Company, and communicate directly with the Company. Approximately 6.7 million people visited its Websites during 2011.

Financial Services Operations

The Company conducts its Financial Services operations, which include mortgage and title operations, through Pulte Mortgage and other subsidiaries. In originating mortgage loans, it initially uses its own funds and funds available pursuant to a repurchase agreement with the Company. It subsequently sells such mortgage loans to outside investors. The servicing sales contracts provide for the reimbursement of payments made when loans prepay within specified periods of time, usually 90 to 120 days after sale. The mortgage subsidiary of Centex also sold loans to a bank for inclusion in residential mortgage-backed securities (RMBSs) issued by the bank. Pulte Mortgage provides mortgage financing for the majority of its home closings by using its own funds and funds available pursuant to a repurchase agreement with the Company.