Full Description

Lennar Corporation is a homebuilder and a provider of financial services. The Company operates in four segments: Homebuilding East, Homebuilding Central, Homebuilding West and Homebuilding Houston. The Company’s homebuilding operations include the construction and sale of single-family attached and detached homes, and to a lesser extent multi-level residential buildings, as well as the purchase, development and sale of residential land directly and through unconsolidated entities, in which it has investments. The Financial Services segment provides mortgage financing, title insurance, closing services and other ancillary services (including high-speed Internet and cable television) for both buyers of the Company’s homes and others. All of the loans the Financial Services segment originates are sold in the secondary mortgage market.

Homebuilding Operations

The Company sells single-family attached and detached homes, and to a lesser extent, multi-level residential buildings, in communities targeted to first-time, move-up and active adult homebuyers. It operates primarily under the Lennar brand name. Through its own efforts and unconsolidated entities, in which it has investments, Lennar Corporation 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’s homebuilding division is responsible for operating decisions regarding land identification, entitlement and development, the management of inventory levels for its volume levels, community development, home design, construction and marketing its homes. Lennar Corporation acquires land for development and for the construction of homes that it sells to homebuyers. At November 30, 2008, the Company owned 74,681 homesites and had access through option contracts to an additional 38,589 homesites, of which 12,718 were through option contracts with third parties and 25,871 were through option contracts with unconsolidated entities, in which it has investments.

Financial Services Operations

Lennar Corporation originates Federal Housing Administration (FHA)-insured and department of Veterans Affairs (VA)-guaranteed residential mortgage loan products to its homebuyers and others through its financial services subsidiaries, Universal American Mortgage Company, LLC and Eagle Home Mortgage, LLC. In fiscal 2008, the Company’s financial services subsidiaries provided loans to 85% of its homebuyers who obtained mortgage financing in areas where it offered services. During fiscal 2008, Lennar Corporation originated approximately 18,300 mortgage loans. Substantially all of the loans were sold in the secondary mortgage market on a servicing released, non-recourse basis. It finances its mortgage loan activities with borrowings under its financial services warehouse facilities or from its operating funds.

The Company provides title insurance and closing services, as well as other ancillary services to its homebuyers and others. 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, Virginia and Wisconsin. Lennar Communications provides cable television and high-speed Internet services to residents of its communities and others, and oversees its interests and activities in relationships with providers of advanced communication services. At December 31, 2008, the Company had approximately 3,100 subscribers in Texas.