Company: LEN
Filing Date: 2025-07-01
Form Type: 10-Q
Source: 0001628280-25-033777
Chunk: 32

Company: LENNAR CORP /NEW/
Filing Date: 2025-07-01
Form: 10-Q
Item: Item 1
Chunk 32
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 quoted prices in active markets for identical assets.Level 2: Fair value determined using significant other observable inputs.Level 3: Fair value determined using significant unobservable inputs.

21

Lennar Corporation and SubsidiariesNotes to Condensed Consolidated Financial Statements (Unaudited) (Continued)

The Company’s financial instruments measured at fair value on a recurring basis are summarized below:Fair Value HierarchyFair Value at(In thousands)May 31, 2025November 30, 2024Financial Services Assets:Residential loans held-for-saleLevel 2$1,814,797 2,200,402 LMF Commercial loans held-for-saleLevel 372,203 50,316 Mortgage servicing rightsLevel 33,467 3,463 Forward optionsLevel 12,037 1,458 Lennar Other Assets:Investments in equity securitiesLevel 1$82,714 204,777 Investments available-for-saleLevel 339,069 40,578 Residential and LMF Commercial loans held-for-sale in the table above include:At May 31, 2025At November 30, 2024(In thousands)Aggregate Principal BalanceChange in Fair ValueAggregate Principal BalanceChange in Fair ValueResidential loans held-for-sale$1,880,054 (65,257)2,263,310 (62,907)LMF Commercial loans held-for-sale72,950 (747)50,020 296 The estimated fair values of the Company's financial instruments have been determined by using available market information and what the Company believes to be appropriate valuation methodologies. Considerable judgement is required in interpreting market data to develop the estimates of fair value. The use of different market assumptions and/or estimation methodologies might have a material effect on the estimated fair value amounts. The following methods and assumptions are used by the Company in estimating fair values.Financial Services residential loans held-for-sale - Fair value is based on independent quoted market prices, where available, or the prices for other mortgage whole loans with similar characteristics. The Company recognizes the fair value of its rights to service a mortgage loan as revenue upon entering into an interest rate lock loan commitment with a borrower. The fair value of these are included in Financial Services’ loans held-for-sale as of May 31, 2025 and November 30, 2024. Fair value of servicing rights is determined based on actual sales of servicing rights on loans with similar characteristics.LMF Commercial loans held-for