Profile: NVR Inc (NVR.N)
2 Dec 2013
NVR, Inc. (NVR) is a homebuilder in the United States. The Company is engaged in the construction and sale of single-family detached homes, townhomes and condominium buildings. To serve customers of its homebuilding operations, NVR also operates a mortgage banking and title services business. It conducts its homebuilding activities directly. Its mortgage banking operations are operated primarily through a wholly owned subsidiary, NVR Mortgage Finance, Inc. (NVRM). Its homebuilding operations include the construction and sale of single-family detached homes, townhomes and condominium buildings under four trade names: Ryan Homes, NVHomes, Fox Ridge Homes and Rymarc Homes. The Ryan Homes, Fox Ridge Homes, and Rymarc Homes products are marketed primarily to first-time homeowners and first-time move-up buyers. The Ryan Homes product was sold in 25 metropolitan areas located in Maryland, Virginia, West Virginia, Pennsylvania, New York, North Carolina, South Carolina, Ohio, New Jersey, Delaware, Kentucky, Indiana, Illinois and Florida as of December 31, 2011. On December 31, 2012, the Company acquired all the assets of Heartland Homes Inc.
The Fox Ridge Homes product is sold in the Nashville, TN metropolitan area and the Rymarc Homes product is sold in the Columbia, SC metropolitan area. The NVHomes product is marketed primarily to move-up and upscale buyers and is sold in the Washington, D.C., Baltimore, MD, Philadelphia, PA and the Maryland Eastern Shore metropolitan areas. As of December 31, 2011, NVR operated in multiple locations in 15 states, primarily in the eastern part of the United States. Approximately 35% of its home settlements during the year ended December 31, 2011, occurred in the Washington, D.C. and Baltimore, MD metropolitan areas, which accounted for approximately 46% of its 2011, homebuilding revenues. As of December 31, 2011, the Company controlled approximately 48,200 lots under purchase agreements. As of December 31, 2011, it directly owned three separate raw parcels of land. In addition to building and selling homes, the Company provides a number of mortgage-related services through its mortgage banking operations. Through operations in each of its homebuilding markets, NVRM originates mortgage loans for its homebuyers. NVRM generates revenues primarily from origination fees, gains on sales of loans and title fees. NVRM sells all of the mortgage loans it closes into the secondary markets on a servicing released basis.
The Company offers single-family detached homes, townhomes and condominium buildings with many different basic home designs. These home designs have a range of elevations and a number of other options. Its homes combine traditional, colonial, or cottage exterior designs with contemporary interior designs and amenities, generally include two to four bedrooms and range from approximately 1,000 to 7,300 square feet. The Company has four homebuilding geographical segments: Mid Atlantic, North East, Mid East and South East. These geographic regions include Maryland, Virginia, West Virginia and Delaware in Mid Atlantic; New Jersey and eastern Pennsylvania in North East; Kentucky, New York, Ohio, western Pennsylvania, Indiana and Illinois in Mid East, and North Carolina, South Carolina, Florida and Tennessee in South East.
NVR provides a number of mortgage related services to its homebuilding customers through its mortgage banking operations. NVR’s mortgage banking operations also include separate subsidiaries that broker title insurance and perform title searches in connection with mortgage loan closings for which they receive commissions and fees. Because NVRM originates mortgage loans almost exclusively for the Company’s homebuilding customers, NVRM is dependent on its homebuilding segment. In 2011, NVRM closed approximately 7,000 loans. NVRM sells all of the mortgage loans it closes to investors in the secondary markets on a servicing released basis, typically within 30 to 60 days from the loan closing. NVRM is an approved seller/servicer for Federal National Mortgage Association (FNMA) mortgage loans and an approved lender/seller of Government National Mortgage Association (GNMA), Federal Home Loan Mortgage Corp (FHLMC), Virginia (VA) and Federal Housing Administration (FHA) mortgage loans.
SUITE 500, 11700 PLAZA AMERICA D
RESTON VA 20190