Profile: MDC Holdings Inc (MDC.N)
17 Mar 2014
M.D.C. Holdings, Inc. (MDC), incorporated on May 17, 1985, operates in the two business segments: homebuilding and financial services. The homebuilding operations consist of wholly owned subsidiary companies, which purchase finished lots for the construction and sale of single-family detached homes to homebuyers under the name Richmond American Homes. The homebuilding operations operates in four business segments: West (Arizona, California, Nevada and Washington); Mountain (Colorado and Utah); East (Virginia and Maryland, which includes Pennsylvania, Delaware, and New Jersey), and other homebuilding (Florida and Illinois). The financial services and other segment consists of HomeAmerican Mortgage Corporation (HomeAmerican), which originates mortgage loans for the homebuyers; American Home Insurance Agency, Inc. (American Home Insurance), which offers third-party insurance products to the homebuyers, and American Home Title and Escrow Company (American Home Title), which provides title agency services to the Company and its homebuyers in Colorado, Florida, Maryland, Nevada and Virginia. The financial services operations also include Allegiant Insurance Company, Inc., A Risk Retention Group (Allegiant), which provides insurance coverage primarily to its homebuilding subsidiaries and certain subcontractors for homes sold by its homebuilding subsidiaries and for work performed in completed subdivisions, and StarAmerican Insurance Ltd. (StarAmerican), a wholly owned subsidiary of MDC which is a re-insurer of Allegiant claims. In February 2014, the Company announced that its subsidiary, Richmond American Homes of Florida closed on one 12-acre property in Mandarin. In February 2014, Company announced that its subsidiary, Richmond American Homes of Florida closed on property on South Beach Parkway in Jacksonville Beach. In March 2014, MDC Holdings, Inc announced that its subsidiary Richmond American Homes closed on property in Oakridge Landing in North St. Johns.
Homebuilding segments include land acquisition and development, home construction, sales and marketing, and customer service. Operating decisions are made by its local management teams under the oversight of its Chief Operating Decision Makers (CODMs), defined as its Chief Executive Officer and Chief Operating Officer. As of December 31, 2012, the Company had 10 homebuilding operating divisions.
Financial Services and Other Segment
HomeAmerican is a mortgage lender and the principal originator of mortgage loans for the homebuyers. It has a centralized loan processing center where it originates mortgage loans primarily for the homebuyers. HomeAmerican is authorized to originate Federal Housing Administration-insured (FHA), Veterans Administration-guaranteed (VA), Federal National Mortgage Association (Fannie Mae), Federal Home Loan Mortgage Corporation (Freddie Mac) and private investor mortgage loans. HomeAmerican also is an authorized loan servicer for Fannie Mae and Freddie Mac.
The Company’s insurance operations consist of three business divisions: Allegiant, StarAmerican and American Home Insurance. Allegiant and StarAmerican were formed to provide insurance coverage of homebuilding risks. American Home Insurance is an insurance agency that sells primarily personal property and casualty insurance products in the same markets as its homebuilding subsidiaries and primarily to its homebuyers.
MDC Holdings Inc
Suite 500, 4350 South Monaco Str
DENVER CO 80237