Company: LEN
Filing Date: 2025-07-01
Form Type: 10-Q
Source: 0001628280-25-033777
Chunk: 152

Company: LENNAR CORP /NEW/
Filing Date: 2025-07-01
Form: 10-Q
Item: Item 8
Chunk 152
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 was partially offset by a decrease in costs per square foot. In addition, land costs increased year over year. Overall, the gross margin percentage of homes delivered decreased year over year. 

Homebuilding West: Revenues from home sales decreased in the six months ended May 31, 2025 compared to the six months ended May 31, 2024, primarily due to a decrease in the number of homes delivered in all the states in the segment except in Arizona, Idaho, Utah and Washington. The overall decrease in the number of homes delivered was primarily due to a decrease in the number of homes delivered per active community due to the timing of opening and closing of communities. In the six months ended May 31, 2025, revenues per square foot were flat while costs per square foot decreased. In addition, land costs increased year over year. Overall, the gross margin percentage of homes delivered decreased year over year. 

Financial Services Segment

Our Financial Services reportable segment provides mortgage financing, title and closing services primarily for buyers of our homes. The segment also originates and sells into securitizations commercial mortgage loans through its LMF Commercial business. Our Financial Services segment sells substantially all of the residential loans it originates within a short period in the secondary mortgage market, the majority of which are sold on a servicing released, non-recourse basis. After the loans are sold, we retain potential liability for possible claims by purchasers that we breached certain limited industry-standard representations and warranties in the loan sale agreements.

The following table sets forth selected financial and operational information related to the residential mortgage and title activities of our Financial Services segment:Three Months EndedSix Months EndedMay 31,May 31,(Dollars in thousands)2025202420252024Dollar value of mortgages originated$4,877,000 4,998,000 9,320,000 9,110,000 Number of mortgages originated13,600 13,700 25,900 25,200 Mortgage capture rate of Lennar homebuyers85%85%85%85%Number of title and closing service transactions21,000 20,200 39,200 38,000 

At May 31, 2025 and November 30, 2024, the carrying value of Financial Services' commercial mortgage-backed securities was $134.3 million and $135.6 million, respectively. Details of these securities and related debt are disclosed in Note 3 of the Notes to Condensed Consolidated