Lennar: Mortgage Ops Down, Overall 3Q Earnings Up Year-to-Year

Third-quarter earnings released Tuesday from builder Lennar Corp. show its mortgage-related operations were down compared to the same period last year, but its overall net earnings were up.

Lennar Financial Services’ operating earnings dropped to $23.5 million compared to $25.3 million primarily to dwindling profit per transaction as refinancing has ebbed.

The Rialto Investments segment, which includes investments in real estate loans and derives fees from managing and servicing assets, saw its operating earnings drop to $1.5 million (including an add back of $800,000 of new loss attributable to noncontrolling interests) from $7.7 million (including an add back of $13.4 million of net loss attributable to noncontrolling interests).

Overall 3Q net earnings attributable to Lennar in 2013 were $120.7 million, or $0.54 per diluted share, which includes a $67.2 million tax provision, compared to third-quarter 2012 net earnings attributable to Lennar of $87.1 million, or $0.40 per diluted share, which includes a $12.8 million tax benefit.