Lennar Corp. is growing its mortgage operation to provide financing for its home buying customers and to compete with local lenders in select markets.
In the first quarter (ending Feb. 28), Lennar’s Universal American Mortgage Co. provided financing for 79% of its buyers who needed mortgage financing in the areas where Universal operates.
However, 58% of its originations involved non-Lennar customers mainly due to refinancings. “The mortgage company also benefited from a robust refinancing market,” Lennar chief executive Stuart Miller said during a conference call Wednesday morning.
Universal originated $1.2 billion in mortgages in the first quarter, up 60% from a year ago. Lennar originated 19,700 mortgages totaling $4.4 billion dollars in 2012, which ended Nov. 30.
“Resurgent demand for homes is constrained by the mortgage market.” Miller said in discussing first quarter results.
However, he noted the landscape is improving. “Banks are beginning to reconsider their underwriting overlays and open the doors to more approvals,” he said.
The CEO noted that buyers seem to be more educated about the lending process and they are more prepared when applying for a mortgage.
