Company: LEN
Filing Date: 2025-10-03
Form Type: 10-Q
Source: 0001628280-25-044086
Chunk: 119

Company: LENNAR CORP /NEW/
Filing Date: 2025-10-03
Form: 10-Q
Item: Item 8
Chunk 119
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:Level 1: Fair value determined based on 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.The Company’s financial instruments measured at fair value on a recurring basis are summarized below:Fair Value HierarchyFair Value at(In thousands)August 31, 2025November 30, 2024Financial Services Assets:Residential loans held-for-saleLevel 2$1,953,557 2,200,402 LMF Commercial loans held-for-saleLevel 377,787 50,316 Mortgage servicing rightsLevel 33,290 3,463 Forward optionsLevel 11,776 1,458 Lennar Other Assets:Investments in equity securitiesLevel 1$167,325 204,777 Investments available-for-saleLevel 339,069 40,578 

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

Residential and LMF Commercial loans held-for-sale in the table above include:At August 31, 2025At November 30, 2024(In thousands)Aggregate Principal BalanceChange in Fair ValueAggregate Principal BalanceChange in Fair ValueResidential loans held-for-sale$1,995,453 (41,896)2,263,310 (62,907)LMF Commercial loans held-for-sale78,050 (263)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 - The fair value of residential loans held-for-sale that trade in active secondary markets is determined based upon quoted market prices for similar mortgage loans, adjusted for credit risk and other loan characteristics, and is categorized as Level 2. 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 August 31, 2025 and November 30,