Company: LEN
Filing Date: 2025-10-03
Form Type: 10-Q
Source: 0001628280-25-044086
Chunk: 153

Company: LENNAR CORP /NEW/
Filing Date: 2025-10-03
Form: 10-Q
Item: Item 8
Chunk 153
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 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 EndedNine Months EndedAugust 31,August 31,(Dollars in thousands)2025202420252024Dollar value of mortgages originated$5,172,000 5,139,000 14,492,000 14,249,000 Number of mortgages originated14,600 14,300 40,500 39,400 Mortgage capture rate of Lennar homebuyers84%84%85%84%Number of title and closing service transactions22,700 21,900 62,000 59,900 

At August 31, 2025 and November 30, 2024, the carrying value of Financial Services' commercial mortgage-backed securities was $133.6 million and $135.6 million, respectively. Details of these securities and related debt are disclosed in Note 3 of the Notes to Condensed Consolidated Financial Statements.

Multifamily Segment

We have been actively involved, primarily through unconsolidated funds and joint ventures, in the development and construction of multifamily rental properties. Our Multifamily segment focuses on developing a geographically diversified portfolio of institutional quality multifamily rental properties in select U.S. markets.

The following table provides information related to our investment in the Multifamily segment:

Balance SheetsAt(In thousands)August 31, 2025November 30, 2024Multifamily investments in unconsolidated entities$519,510 503,303 Lennar's net investment in Multifamily878,511 1,116,295 

During the second half of fiscal 2024, the LMV I partners decided to liquidate and sell all of its 38 rental operation projects of LMV I as the fund has come to the end of its contractual life. During the year ended November 30, 2024, 33 LMV I rental operation projects were sold to various third-party buyers. During the nine months ended August 31, 2025