Full Description

Centex Corporation is a residential construction company whose principal operations are focused on residential construction and related activities, including mortgage financing to homebuyers. As of March 31, 2009, the Company's subsidiary companies operated in two principal lines of business: Home Building and Financial Services. Home Building's operations involve the purchase and development of land or lots, and the construction and sale of detached and attached single-family homes. Financial Services operations consist primarily of mortgage lending, title agency services and settlement services. These activities include mortgage origination and other related services for homes sold by the Company's subsidiaries and others.

Home Building

The business of Home Building consists of constructing and selling detached and attached single-family homes. The land used for the construction of its homes is acquired through the purchase of finished or partially finished lots and through the purchase of raw land that must be developed. During the fiscal year ended March 31, 2009 (fiscal 2009), approximately 81% of the homes closed were single-family detached homes. As of March 31, 2009, Home Building had homebuilding operations in 75 market areas located in 22 states and the District of Columbia. In fiscal 2009, Home Building closed the sale of 14,434 homes, including first-time, move-up and, in some markets, luxury homes. At March 31, 2009, Home Building owned 57,289 lots and had options to purchase 7,045 lots. Home Building sells its homes principally under the Centex name.

Financial Services

The Company’s Financial Services operations include mortgage lending and other related services for purchasers of homes sold by its homebuilding operations and title insurance, and settlement services. Retail mortgage originations represented approximately 44.4% of total mortgage originations during the fiscal 2009. Financial Services, which originally operated approximately 80 retail branches, had ceased operations as of March 31, 2009. At March 31, 2009, Financial Services originated Builder loans from 37 offices licensed in 22 states.

The Company provides mortgage origination and other mortgage-related services for Federal Housing Administration (FHA) loans, Department of Veterans’ Affairs (VA) loans and conventional loans. Its loans are generally first-lien mortgages secured by the home. Financial Services also holds other mortgage loans, including performing and non-performing construction loans and other non-performing mortgage loans.

The Company competes with D. R. Horton, Inc., Lennar Corporation, NVR, Inc. and Pulte Homes, Inc.