Profile: MDC Holdings Inc (MDC.N)
M.D.C. Holdings, Inc., incorporated on May 17, 1985, is engaged in two primary operations, including homebuilding and financial services. The Company's segments include West, including segments located in Arizona, California, Nevada and Washington; Mountain, including segments located in Colorado and Utah; East, including segments located in Virginia, Florida and Maryland, which includes Pennsylvania and New Jersey; mortgage operations, including HomeAmerican Mortgage Corporation (HomeAmerican), and Other, which includes Allegiant Insurance Company, Inc. (Allegiant), StarAmerican Insurance Ltd. (StarAmerican), American Home Insurance Agency, Inc. (American Home Insurance) and American Home Title and Escrow Company (American Home Title).
The primary functions of its homebuilding segments include land acquisition and development, home construction, sales and marketing, and customer service. The Company's homebuilding operations consist of subsidiary companies that purchase finished lots or develop lots necessary for the construction and sale of single-family detached homes to first-time and first-time move-up homebuyers under the name Richmond American Homes. Its homebuilding operations consist of various homebuilding divisions. Its homebuilding subsidiaries build single-family detached homes in a range of series, designed to provide various sizes and styles of homes for its homebuyers. In certain markets, its homebuilding subsidiaries build and sell attached townhomes. Within each series of its single-family detached homes, its homebuilding subsidiaries build various floor plans offering standard and optional features (such as upgraded appliances, cabinetry and flooring, among others). The series of homes offered at a particular location is based on perceived customer preferences, lot size, area demographics and, in certain cases, the requirements of land sellers and local municipalities. In general, its homebuilding subsidiaries focus on selling to be built homes, also referred to as dirt sales.
The Company's homebuilding subsidiaries acquire lots with the intention of constructing and selling homes on the acquired land. Generally, it prefers to purchase finished lots using option contracts, in phases or in bulk for cash. Its homebuilding subsidiaries may own or have the right under option contracts to acquire undeveloped parcels of real estate that they intend to develop into finished lots.
Financial Services Operations
The Company's financial services operations consist of HomeAmerican, which originates mortgage loans for its homebuyers; Allegiant, which provides insurance coverage to its homebuilding subsidiaries and most of its subcontractors for homes sold by its homebuilding subsidiaries and for work performed in completed subdivisions; StarAmerican, which is a re-insurer on Allegiant claims; American Home Insurance, which offers third-party insurance products to its homebuyers, and American Home Title, which provides title agency services to its homebuilding subsidiaries and its customers in certain states. HomeAmerican is a full-service mortgage lender and the principal originator of mortgage loans for its homebuyers. HomeAmerican has a centralized loan processing center where it originates mortgage loans, primarily for its homebuyers.
HomeAmerican originates Federal National Mortgage Association (Fannie Mae), Federal Home Loan Mortgage Corporation (Freddie Mac), Federal Housing Administration-insured (FHA) and Veterans Administration-guaranteed (VA) mortgages, and is an issuer of Government National Mortgage Association (Ginnie Mae) mortgage-backed securities. HomeAmerican is also a loan servicer for Fannie Mae, Freddie Mac and Ginnie Mae. HomeAmerican uses a mortgage repurchase facility, internally generated funds and temporary financing provided by its parent, to finance the origination of mortgage loans until they are sold. HomeAmerican sells originated mortgage loans to third-party purchasers on either a bulk or flow basis. Mortgage loans sold on a bulk basis include the sale of a package of substantially similar originated mortgage loans, while sales of mortgage loans on a flow basis are completed as HomeAmerican originates each loan.
The Company's mortgage loans that are sold to third-party purchasers include HomeAmerican's representations and warranties with respect to certain borrower payment defaults, credit quality issues and/or misrepresentations made by HomeAmerican or its homebuyers. American Home Insurance is an insurance agency that sells homeowners' personal property and casualty insurance products in the same markets as its homebuilding subsidiaries and primarily to its homebuyers. American Home Title provides title agency services to the Company and its homebuyers in Colorado, Florida, Maryland, Nevada and Virginia.
MDC Holdings Inc
4350 S Monaco St Ste 500
DENVER CO 80237-3400