Company: LEN
Filing Date: 2025-01-23
Form Type: 10-K
Source: 0001628280-25-002404
Chunk: 58

Company: LENNAR CORP /NEW/
Filing Date: 2025-01-23
Form: 10-K
Item: Item 8
Chunk 58
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 fair value on a recurring basis are summarized below:Fair Value at November 30,(In thousands)FairValueHierarchy20242023Financial Services Assets:Residential loans held-for-saleLevel 2$2,200,402 2,073,350 LMF Commercial loans held-for-saleLevel 350,316 13,459 Mortgage servicing rightsLevel 33,463 3,440 Forward optionsLevel 11,458 5,937 Lennar Other Assets:Investments in equity securitiesLevel 1204,777 176,198 Investments available-for-saleLevel 340,578 37,953 

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Table of ContentsLENNAR CORPORATION AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

Residential and LMF Commercial loans held-for-sale in the table above include:November 30,20242023(In thousands)Aggregate Principal BalanceChange in Fair ValueAggregate Principal BalanceChange in Fair ValueResidential loans held-for-sale$2,263,310 (62,907)2,083,776 (10,426)LMF Commercial loans held-for-sale50,020 296 13,650 (191)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 judgment 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 November 30, 2024 and 2023. Fair value of servicing rights is determined based on actual sales of servicing rights on loans with similar characteristics.LMF Commercial loans held-for-sale - The fair value of commercial loans held-for-sale is calculated from model-based techniques that use discounted cash flow assumptions and the Company’s own estimates of CMBS spreads, market interest rate movements and the underlying loan credit quality. Loan values are calculated by allocating the change in value of an assumed CM