Company: LEN
Filing Date: 2025-01-23
Form Type: 10-K
Source: 0001628280-25-002404
Chunk: 60

Company: LENNAR CORP /NEW/
Filing Date: 2025-01-23
Form: 10-K
Item: Item 8
Chunk 60
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 CMBS capital structure to each loan. The value of an assumed CMBS capital structure is calculated, generally, by discounting the cash flows associated with each CMBS class at market interest rates and at the Company’s own estimate of CMBS spreads.

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

The changes in fair values for Level 1 and Level 2 financial instruments measured on a recurring basis are shown below by financial instrument and financial statement line item:Years Ended November 30,(In thousands)202420232022Changes in fair value included in Financial Services revenues:Loans held-for-sale$(52,482)(26,658)(33,287)Mortgage loan commitments(44,106)1,016 43,695 Forward contracts61,372 (28,431)(48,790)Forward options(133)(522)(142)Changes in fair value included in Lennar Other unrealized gains (losses) from technology investments: Investments in equity securities$25,180 (50,162)(655,094)Changes in fair value included in other comprehensive income, net of tax:Lennar Other investments available-for-sale$2,650 2,471 1,464 Interest on Financial Services loans held-for-sale and LMF Commercial loans held-for-sale measured at fair value is calculated based on the interest rate of the loans and recorded as revenues in the Financial Services’ statement of operations.The following table sets forth the reconciliation of the beginning and ending balance for the Level 3 recurring fair value measurements in the Company's Financial Services segment:Years Ended November 30,20242023(In thousands)Mortgage servicing rightsLMF Commercial loans held-for-saleMortgage servicing rightsLMF Commercial loans held-for-saleBeginning balance$3,440 13,459 3,463 25,599 Purchases/loan originations463 568,520 200 466,043 Sales/loan originations sold, including those not settled— (522,647)— (430,707)Disposals/settlements (1)(261)(9,500)(277)(45,667)Changes in fair value (2)(179)296 54 (191)Interest and principal paydowns— 188 — (1,618)Ending balance$3,463 50,316 3,440 13,459