Profile: Lennar Corp (LEN.N)

LEN.N on New York Stock Exchange

41.03USD
19 Sep 2014
Price Change (% chg)

$-0.35 (-0.85%)
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Lennar Corporation, incorporated on September 6, 1991, is a homebuilder and a provider of financial services and through its Rialto Investments (Rialto) segment, an investor, and manager of funds that invest in real estate assets. The Company's homebuilding operations include the construction and sale of single-family attached and detached homes, as well as the purchase, development and sale of residential land directly and through unconsolidated entities in which it has investments. Its homebuilding activities have five segments: Homebuilding East, Homebuilding Central, Homebuilding West, Homebuilding Southeast Florida, and Homebuilding Houston. It has two other segments: financial services and rialto. Its financial services reportable segment provides mortgage financing, title insurance and closing services for both buyers of its homes and others. Rialto segment focuses on real estate investments and asset management.

The loans the Company originates are sold within a short period in the secondary mortgage market on a servicing released, non-recourse basis. After the loans are sold, it retains potential liability for possible claims by purchasers that it breached certain limited industry-standard representations and warranties in the loan sale agreements. The Company’s financial services segment operates generally in the same states as its homebuilding operations, as well as in other states. Rialto utilizes its vertically-integrated investment and operating platform to underwrite, diligence, acquire, manage, workout and add value to diverse portfolios of real estate loans, properties and securities, as well as providing strategic real estate capital.

Homebuilding Operations

The Company primarily sells single-family attached and detached homes in communities targeted to first-time, move-up and active adult homebuyers. The Company operates primarily under the Lennar brand name. It is involved in all phases of planning and building in its residential communities, including land acquisition, site planning, preparation and improvement of land and design, construction and marketing of homes. The Company uses independent subcontractors for most aspects of home construction. As of November 30, 2012, it actively built and marketed homes in 457 communities, excluding unconsolidated entities.

During the fiscal year ended November 30, 2012 (fiscal 2012), it became actively involved, primarily in the development of multifamily rental properties. The Multifamily business will focus on assembling a geographically diversified portfolio of institutional quality multifamily rental properties using a development strategy in select United States markets. As of November 30, 2012, the Company owned 107,138 homesites and had access through option contracts to an additional 21,346 homesites, of which 13,312 homesites were through option contracts with third parties and 8,034 homesites were through option contracts with Lennar Homebuilding unconsolidated entities in which it has investments.

Lennar Financial Services Operations

The Company primarily originates conforming conventional, FHA-insured and VA-guaranteed residential mortgage loan products and other products to its homebuyers and others through its financial services subsidiary, Universal American Mortgage Company, LLC, which includes Universal American Mortgage Company, LLC, d/b/a Eagle Home Mortgage, located generally in the same states as its homebuilding operations, as well as some other states. In fiscal 2012, its financial services subsidiaries provided loans to 77% of its homebuyers who obtained mortgage financing in areas where it offered services. In fiscal 2012, it originated approximately 19,700 mortgage loans. Substantially all of the loans it originates are sold within a short period in the secondary mortgage market on a servicing released, non-recourse basis. After the loans are sold, it retains potential liability for possible claims by purchasers that it breached certain limited industry-standard representations and warranties in the loan sale agreements.

The Company provides title insurance and closing services to its homebuyers and others. In fiscal 2012, the Company provided title and closing services for approximately 108,200 real estate transactions, and issued approximately 149,300 title insurance policies through its underwriter, North American Title Insurance Company. Title and closing services are provided by agency subsidiaries in Arizona, California, Colorado, District of Columbia, Florida, Illinois, Maryland, Minnesota, Nevada, New Jersey, New York, Pennsylvania, Texas, Utah, Virginia and Wisconsin. Title insurance services are provided in these same states, except New York, as well as in Alabama, Delaware, Georgia, Indiana, Kentucky, Massachusetts, Michigan, Mississippi, Ohio, Oklahoma, Oregon, North Carolina, South Carolina, Tennessee, Washington and Wyoming

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Rialto Investments Operations

The Company’s rialto segment focuses on real estate investments and asset management. Rialto utilizes its vertically-integrated investment and operating platform to underwrite, diligence, acquire, manage, workout and add value to diverse portfolios of real estate loans, properties and securities, as well as providing strategic real estate capital. Rialto's primary focus is to manage third party capital and has invested in or commenced the workout and/or oversight of billions of dollars of real estate assets across the United States, including commercial and residential real estate loans and properties, as well as mortgage backed securities with the objective of generating superior, risk-adjusted returns.

Company Address

Lennar Corp

SUITE 400, 700 Northwest 107th A
MIAMI   FL   33172-3154
P: +1305.5594000
F: +1302.6555049

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