Profile: MDC Holdings Inc (MDC.N)
28 Sep 2016
M.D.C. Holdings, Inc., incorporated on May 17, 1985, is engaged in two primary operations, including homebuilding and financial services. The Company's homebuilding operations consist of subsidiary companies that purchases finished lots or develop lots for the construction and sale primarily of single-family detached homes to first-time and first-time move-up homebuyers under the name Richmond American Homes. The Company's homebuilding operations consists of various homebuilding divisions that the Company considers to be its operating segments. The Company's operating segments include West (include operating segments located in Arizona, California, Nevada and Washington); Mountain (include operating segments located in Colorado and Utah), and East (include operating segments located in Virginia, Florida and Maryland, which include Pennsylvania, and New Jersey).
The Company's financial services operations primarily consists of HomeAmerican Mortgage Corporation (HomeAmerican), which originates mortgage loans primarily for its homebuyers; Allegiant Insurance Company, Inc., A Risk Retention Group (Allegiant), which provides insurance coverage primarily to its homebuilding subsidiaries and its subcontractors for homes sold by its homebuilding subsidiaries and for work performed in completed subdivisions; StarAmerican Insurance Ltd., which is a re-insurer on Allegiant claims; American Home Insurance Agency, Inc., which offers third-party insurance products to its homebuyers, and American Home Title and Escrow Company, which provides title agency services to its homebuilding subsidiaries and its customers in certain states.
The Company's homebuilding segments include land acquisition and development, home construction, sales and marketing and customer service. The Company's homebuilding business is managed primarily through members of senior management in its corporate segment and its asset management committees (AMCs).
The Company's senior management and AMC include review and approval of division business plans and budgets; oversight of land and home inventory levels; review of major personnel decisions, and review of capital allocation decisions. The Company's corporate office responsibilities include asset management and capital allocation, treasury, insurance and risk management, merchandising and marketing, national purchasing contracts, accounting, tax and internal audit functions, legal matters, human resources and payroll, information technology, and training and development. The Company's homebuilding subsidiaries build single-family detached homes in a number of standardized series, which is designed to provide a range in the size and style of homes for its homebuyers. The Company's homebuilding subsidiaries builds and sells attached town homes.
Financial Services Operations
The Company's financial services operations segment consists of mortgage lending operations, insurance operations and title operations. HomeAmerican is a mortgage lender and the principal originator of mortgage loans for its homebuyers. The Company's HomeAmerican has a loan processing center where it originates mortgage loans, primarily for its homebuyers. The Company's HomeAmerican authorizes to originate Federal National Mortgage Association (Fannie Mae), Federal Home Loan Mortgage Corporation (Freddie Mac), Federal Housing Administration-insured (FHA), and Veterans Administration-guaranteed (VA) mortgages, which is an authorized issuer of Government National Mortgage Association (Ginnie Mae) for mortgage-backed securities. The Company's HomeAmerican authorizes loan servicer for Fannie Mae, Freddie Mac and Ginnie Mae.
The Company's HomeAmerican uses a mortgage repurchase facility, which generates funds and temporary financing provided by its parent, to finance the origination of mortgage loans. The Company's HomeAmerican sells mortgage loans to third-party purchasers. The Company's insurance operations consists of approximately three business divisions, which include Allegiant, StarAmerican and American Home Insurance. Allegiant and StarAmerican are formed to provide insurance coverage of homebuilding risks for its homebuilding subsidiaries and certain of its homebuilding subcontractors. The Company's American Home Insurance is an insurance agency that sells homeowners, personal property and casualty insurance products.
MDC Holdings Inc
4350 S Monaco St Ste 500
DENVER CO 80237-3400