M.D.C. Holdings, Inc. engages in the homebuilding and financial services operations. Homebuilding Operations The company’s homebuilding operations consist of wholly-owned subsidiary companies that generally purchase finished lots or develop lots to the extent necessary for the construction and sale primarily of single-family detached homes to first-time and first-time move-up homebuyers under the name ‘Richmond American Homes’. The company’s homebuilding operations include various homebuilding divisions that the company considers to be its operating segments. The company has aggregated its homebuilding operating segments into various segments, such as West (includes operating segments located in Arizona, California, Nevada, and Washington); Mountain (includes operating segments located in Colorado and Utah); and East (includes operating segments located in Virginia, Florida and Maryland, which includes Pennsylvania, and New Jersey). The primary functions of the company’s homebuilding segments include land acquisition and development, home construction, sales and marketing, and customer service. Housing: The company’s homebuilding subsidiaries build single-family detached homes in various standardized series, designed to provide variety in the size and style of homes for the company’s potential homebuyers. In certain markets, the company’s homebuilding subsidiaries build and sell attached townhomes. Within each series of its single-family detached homes, the company’s homebuilding subsidiaries build different floor plans offering standard and optional features (such as upgraded appliances, cabinetry, flooring, etc.). The series of homes offered at a particular location is based on perceived customer preferences, lot size, area demographics, and in certain cases, the requirements of major land sellers and local municipalities. In general, the company’s homebuilding subsidiaries focus on selling ‘to be built homes’, also referred to as ‘dirt sales’, and limit the level of homes started without a contract. Land Acquisition and Development: The company’s homebuilding subsidiaries acquire its lots with the intention of constructing and selling homes on the acquired land. The company’s homebuilding subsidiaries attempt to maintain a supply of finished lots sufficient to enable them to start homes promptly after a contract for a home sale is executed. In their option contracts, the company’s homebuilding subsidiaries generally obtain the right to purchase lots in consideration for an option deposit in the form of cash or letters of credit. The company’s homebuilding subsidiaries might own or have the right under option contracts to acquire undeveloped parcels of real estate that they intend to develop into finished lots. They generally develop the company’s land in phases to limit its risk in a particular subdivision and to employ available capital resources. Financial Services Operations The company’s financial services operations primarily consist of HomeAmerican Mortgage Corporation (HomeAmerican), which originates mortgage loans primarily for its homebuyers; Allegiant Insurance Company, Inc., a Risk Retention Group (Allegiant), which provides insurance coverage primarily to its homebuilding subsidiaries and most of its subcontractors for homes sold by the company’s homebuilding subsidiaries and for work performed in completed subdivisions; StarAmerican Insurance Ltd., which is a re-insurer on Allegiant claims; American Home Insurance Agency, Inc., which offers third-party insurance products to its homebuyers; and American Home Title and Escrow Company, which provides title agency services to its homebuilding subsidiaries and its customers in certain states. The company has aggregated its financial services operating segments into various segments, such as mortgage operations (represents HomeAmerican) and other (all remaining operating segments). Mortgage Lending Operations HomeAmerican is a full-service mortgage lender and the principal originator of mortgage loans for the company’s homebuyers. HomeAmerican has a centralized loan processing center where it originates mortgage loans, primari
mdc holdings inc (MDC:New York)
4350 South Monaco Street
Denver, CO 80237
Phone: 303 773 1100
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