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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended February 28, 2022
or
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the Transition Period from _______ To _______
Commission File Number: 1-11749
Lennar Corporation
(Exact name of registrant as specified in its charter)
Delaware95-4337490
(State or other jurisdiction of
incorporation or organization)
(I.R.S. Employer
Identification No.)
700 Northwest 107th Avenue, Miami, Florida 33172
(Address of principal executive offices) (Zip Code)
(305559-4000
(Registrant’s telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Class A Common Stock, par value $.10
LENNew York Stock Exchange
Class B Common Stock, par value $.10
LEN.BNew York Stock Exchange
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes      No  ¨
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes      No  ¨
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Large accelerated filerRAccelerated filer¨Emerging growth company
Non-accelerated filer¨Smaller reporting company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes      No  
Common stock outstanding as of February 28, 2022:
Class A 258,621,051
Class B 36,869,152




LENNAR CORPORATION
FORM 10-Q
For the period ended February 28, 2022
Part I
Item 1.
Item 2.
Item 3.
Item 4.
Part II
Item 1.
Item 1A.
Item 2.
Item 3 - 5.
Item 6.





Part I. Financial Information
Item 1. Financial Statements

Lennar Corporation and Subsidiaries
Condensed Consolidated Balance Sheets
(Dollars in thousands)
February 28,November 30,
2022 (1)2021 (1)
(Unaudited)
ASSETS
Homebuilding:
Cash and cash equivalents$1,366,597 2,735,213 
Restricted cash27,025 21,927 
Receivables, net456,185 490,278 
Inventories:
Finished homes and construction in progress11,587,394 10,446,139 
Land and land under development7,758,804 7,108,142 
Consolidated inventory not owned1,246,504 1,161,023 
Total inventories20,592,702 18,715,304 
Investments in unconsolidated entities1,066,256972,084 
Goodwill3,442,3593,442,359 
Other assets1,141,3621,090,654 
28,092,486 27,467,819 
Financial Services2,183,3332,964,367 
Multifamily1,250,5701,311,747 
Lennar Other1,108,863 1,463,845 
Total assets$32,635,252 33,207,778 
(1)Under certain provisions of Accounting Standards Codification ("ASC") Topic 810, Consolidations ("ASC 810"), the Company is required to separately disclose on its condensed consolidated balance sheets the assets owned by consolidated variable interest entities ("VIEs") and liabilities of consolidated VIEs as to which neither Lennar Corporation, nor any of its subsidiaries, has any obligations.
As of February 28, 2022, total assets include $1.1 billion related to consolidated VIEs of which $66.9 million is included in Homebuilding cash and cash equivalents, $0.3 million in Homebuilding receivables, net, $703.4 million in Homebuilding land and land under development, $218.3 million in Homebuilding consolidated inventory not owned, $1.1 million in Homebuilding investments in unconsolidated entities, $22.1 million in Homebuilding other assets and $59.4 million in Multifamily assets.
As of November 30, 2021, total assets include $1.1 billion related to consolidated VIEs of which $60.9 million is included in Homebuilding cash and cash equivalents, $4.4 million in Homebuilding receivables, net, $14.3 million in Homebuilding finished homes and construction in progress, $697.1 million in Homebuilding land and land under development, $239.2 million in Homebuilding consolidated inventory not owned, $1.1 million in Homebuilding investments in unconsolidated entities, $17.4 million in Homebuilding other assets and $80.6 million in Multifamily assets.
See accompanying notes to condensed consolidated financial statements.
3

Lennar Corporation and Subsidiaries
Condensed Consolidated Balance Sheets (Continued)
(In thousands, except share amounts)
February 28,November 30,
2022 (2)2021 (2)
(Unaudited)
LIABILITIES AND EQUITY
Homebuilding:
Accounts payable$1,321,148 1,321,247 
Liabilities related to consolidated inventory not owned1,038,561 976,602 
Senior notes and other debts payable, net4,639,222 4,652,338 
Other liabilities3,022,840 2,920,055 
10,021,771 9,870,242 
Financial Services1,334,145 1,906,343 
Multifamily311,775 288,930 
Lennar Other120,129 145,981 
Total liabilities11,787,820 12,211,496 
Stockholders’ equity:
Preferred stock  
Class A common stock of $0.10 par value; Authorized: February 28, 2022 and November 30, 2021 - 400,000,000 shares; Issued: February 28, 2022 - 302,427,896 shares and November 30, 2021 - 300,500,075 shares
30,243 30,050 
Class B common stock of $0.10 par value; Authorized: February 28, 2022 and November 30, 2021 - 90,000,000 shares; Issued: February 28, 2022 - 39,443,168 shares and November 30, 2021 - 39,443,168 shares
3,944 3,944 
Additional paid-in capital8,855,151 8,807,891 
Retained earnings15,078,788 14,685,329 
Treasury stock, at cost; February 28, 2022 - 43,806,845 shares of Class A common stock and 2,574,016 shares of Class B common stock; November 30, 2021 - 38,586,961 shares of Class A common stock and 1,922,016 shares of Class B common stock
(3,290,748)(2,709,448)
Accumulated other comprehensive income (loss)1,686 (1,341)
Total stockholders’ equity20,679,064 20,816,425 
Noncontrolling interests168,368 179,857 
Total equity20,847,432 20,996,282 
Total liabilities and equity$32,635,252 33,207,778 
(2)As of February 28, 2022, total liabilities include $236.4 million related to consolidated VIEs as to which there was no recourse against the Company, of which $23.8 million is included in Homebuilding accounts payable, $182.7 million in Homebuilding liabilities related to consolidated inventory not owned, $18.4 million in Homebuilding senior notes and other debts payable, $7.8 million in Homebuilding other liabilities and $3.8 million in Multifamily liabilities.
As of November 30, 2021, total liabilities include $258.5 million related to consolidated VIEs as to which there was no recourse against the Company, of which $26.6 million is included in Homebuilding accounts payable, $196.6 million in Homebuilding liabilities related to consolidated inventory not owned, $20.1 million in Homebuilding senior notes and other debt payable, $12.3 million in Homebuilding other liabilities and $2.8 million in Multifamily liabilities.
See accompanying notes to condensed consolidated financial statements.
4

Lennar Corporation and Subsidiaries
Condensed Consolidated Statements of Operations and Comprehensive Income
(In thousands, except per share amounts)
(Unaudited)

Three Months Ended
February 28,
20222021
Revenues:
Homebuilding$5,752,205 4,943,056 
Financial Services176,701 244,069 
Multifamily267,359 131,443 
Lennar Other7,251 6,900 
Total revenues6,203,516 5,325,468 
Costs and expenses:
Homebuilding4,641,898 4,118,286 
Financial Services85,910 97,862 
Multifamily263,737 131,049 
Lennar Other5,407 4,252 
Corporate general and administrative113,661 110,531 
Charitable foundation contribution12,538 12,314 
Total costs and expenses5,123,151 4,474,294 
Homebuilding equity in loss from unconsolidated entities(286)(4,565)
Homebuilding other income (expense), net(171)12,975 
Multifamily equity in earnings (loss) from unconsolidated entities and other gain1,805 (1,268)
Lennar Other unrealized gain (loss) from technology investments(395,170)469,745 
Lennar Other equity in loss from unconsolidated entities and other expense, net, and other gain(9,808)(1,047)
Earnings before income taxes676,735 1,327,014 
Provision for income taxes(167,420)(310,105)
Net earnings (including net earnings attributable to noncontrolling interests)509,315 1,016,909 
Less: Net earnings attributable to noncontrolling interests5,734 15,540 
Net earnings attributable to Lennar$503,581 1,001,369 
Other comprehensive income (loss), net of tax:
Net unrealized gain (loss) on securities available-for-sale$742 (942)
Reclassification adjustments for gain included in earnings, net of tax2,285  
Total other comprehensive income (loss), net of tax$3,027 (942)
Total comprehensive income attributable to Lennar$506,608 1,000,427 
Total comprehensive income attributable to noncontrolling interests$5,734 15,540 
Basic earnings per share$1.70 3.20 
Diluted earnings per share$1.69 3.20 




See accompanying notes to condensed consolidated financial statements.
5

Lennar Corporation and Subsidiaries
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
Three Months Ended
February 28,
20222021
Cash flows from operating activities:
Net earnings (including net earnings attributable to noncontrolling interests)$509,315 1,016,909 
Adjustments to reconcile net earnings to net cash (used in) provided by operating activities:
Depreciation and amortization20,089 22,325 
Amortization of discount/premium on debt, net(490)(2,361)
Equity in loss from unconsolidated entities9,752 7,897 
Distributions of earnings from unconsolidated entities4,822 4,234 
Share-based compensation expense81,457 48,818 
Deferred income tax (benefit) expense(54,032)114,917 
Loans held-for-sale unrealized loss27,387 35,021 
Lennar Other unrealized (gain) loss from technology investments395,170 (469,745)
Gain on sale of other assets and operating properties and equipment (1,167)
Gain on sale of interest in unconsolidated entity and other Multifamily gain (19,184)
Valuation adjustments and write-offs of option deposits and pre-acquisition costs
11,509 635 
Changes in assets and liabilities:
Decrease in receivables380,502 45,649 
Increase in inventories, excluding valuation adjustments and write-offs of option deposits and pre-acquisition costs(1,913,634)(862,120)
Increase in other assets(49,968)(100,486)
Decrease in loans held-for-sale409,435 360,582 
Increase in accounts payable and other liabilities96,455 183,584 
Net cash (used in) provided by operating activities(72,231)385,508 
Cash flows from investing activities:
Net additions of operating properties and equipment(5,780)(8,561)
Proceeds from the sale of operating properties and equipment, other assets 32,002 
Investments in and contributions to unconsolidated entities(138,909)(224,112)
Distributions of capital from unconsolidated entities173,561 83,241 
Proceeds from sale of commercial mortgage-backed securities bonds9,191 11,307 
Decrease in Financial Services loans held-for-investment, net11,431 3,777 
Purchases of investment securities(71,269) 
Proceeds from maturities/sales of investment securities1,783 8,994 
Net cash used in investing activities$(19,992)(93,352)





See accompanying notes to condensed consolidated financial statements.
6

Lennar Corporation and Subsidiaries
Condensed Consolidated Statements of Cash Flows (Continued)
(In thousands)
(Unaudited)

Three Months Ended
February 28,
20222021
Cash flows from financing activities:
Net repayments under warehouse facilities$(528,667)(500,849)
Principal payments on notes payable and other borrowings(18,776)(55,350)
Proceeds from other borrowings 8,903 
Proceeds from liabilities related to consolidated inventory not owned199,483 67,432 
Payments related to consolidated inventory not owned(166,100) 
Receipts related to noncontrolling interests6,984 8,896 
Payments related to noncontrolling interests(59,388)(11,397)
Common stock:
Repurchases(581,300)(69,480)
Dividends(110,122)(77,843)
Net cash used in financing activities$(1,257,886)(629,688)
Net decrease in cash and cash equivalents and restricted cash(1,350,109)(337,532)
Cash and cash equivalents and restricted cash at beginning of period2,955,683 2,932,730 
Cash and cash equivalents and restricted cash at end of period$1,605,574 2,595,198 
Summary of cash and cash equivalents and restricted cash:
Homebuilding$1,366,597 2,421,411 
Financial Services168,032 117,856 
Multifamily34,439 25,644 
Lennar Other2,757 3,888 
Homebuilding restricted cash27,025 17,878 
Financial Services restricted cash6,724 8,521 
$1,605,574 2,595,198 
Supplemental disclosures of non-cash investing and financing activities:
Homebuilding and Multifamily:
Purchases of inventories and other assets financed by sellers$6,150 68,978 
Non-cash contributions to unconsolidated entities124,864  

See accompanying notes to condensed consolidated financial statements.
7


Lennar Corporation and Subsidiaries
Notes to Condensed Consolidated Financial Statements (Unaudited)
(1)Basis of Presentation
Basis of Consolidation
The condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim financial information and pursuant to the rules and regulations of the Securities and Exchange Commission. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements in the Company’s Annual Report on Form 10-K for the year ended November 30, 2021. The basis of consolidation is unchanged from the disclosure in the Company's Notes to Consolidated Financial Statements section in its Form 10-K for the year ended November 30, 2021. In the opinion of management, all adjustments (consisting of normal recurring adjustments) necessary for the fair presentation of the accompanying condensed consolidated financial statements have been made.
The Company has historically experienced, and expects to continue to experience, variability in quarterly results. The condensed consolidated statements of operations for the three months ended February 28, 2022 are not necessarily indicative of the results to be expected for the full year.
Use of Estimates
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. Actual results could differ from those estimates.
Cash and Cash Equivalents
Homebuilding cash and cash equivalents as of February 28, 2022 and November 30, 2021 included $894.6 million and $940.4 million, respectively, of cash held in escrow. On average for the three months ended February 28, 2022, cash was held in escrow for approximately two days.
Homebuilding Revenue Recognition
Homebuilding revenues and related profits from sales of homes are recognized at the time of the closing of a sale, when title to and possession of the property are transferred to the homebuyer. In order to promote sales of the homes, the Company may offer sales incentives to homebuyers. The types of incentives vary on a community-by-community basis and home-by-home basis. They include primarily price discounts on individual homes and financing incentives, all of which are reflected as a reduction of home sales revenues. For the three months ended February 28, 2022 and 2021, sales incentives offered to homebuyers averaged $8,600 per home, or 1.9% as a percentage of home sales revenues, and $12,300 per home, or 3.0% as a percentage of home sales revenues, respectively.
Share-based Payments
During both the three months ended February 28, 2022 and 2021, the Company granted employees 1.4 million nonvested shares.
Recently Adopted Accounting Pronouncements
In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740), Simplifying the Accounting for Income Taxes ("ASU 2019-12"). ASU 2019-12 was effective for the Company’s fiscal year beginning December 1, 2021. The adoption of ASU 2019-12 did not have a material impact on the Company's condensed consolidated financial statements.





8

Lennar Corporation and Subsidiaries
Notes to Condensed Consolidated Financial Statements (Unaudited) (Continued)
(2)Operating and Reporting Segments
The Company's homebuilding operations construct and sell homes primarily for first-time, move-up and active adult homebuyers primarily under the Lennar brand name. In addition, the Company's homebuilding operations purchase, develop and sell land to third parties. The Company's chief operating decision makers manage and assess the Company’s performance at a regional level. Therefore, the Company performed an assessment of its operating segments in accordance with ASC 280, Segment Reporting, and determined that the following are its operating and reportable segments:
Homebuilding segments: (1) East (2) Central (3) Texas (4) West
(5) Financial Services
(6) Multifamily
(7) Lennar Other
The assets and liabilities related to the Company’s segments were as follows:

(In thousands)February 28, 2022
Assets:HomebuildingFinancial
Services
MultifamilyLennar
Other
Total
Cash and cash equivalents$1,366,597 168,032 34,439 2,757 1,571,825 
Restricted cash27,025 6,724   33,749 
Receivables, net (1)456,185 358,866 101,334  916,385 
Inventories20,592,702  395,507  20,988,209 
Loans held-for-sale (2) 1,199,603   1,199,603 
Investments in equity securities (3)   670,980 670,980 
Investments available-for-sale (4)   34,760 34,760 
Loans held-for-investment, net 33,168   33,168 
Investments held-to-maturity 156,587   156,587 
Investments in unconsolidated entities1,066,256  661,252 333,755 2,061,263 
Goodwill3,442,359 189,699   3,632,058 
Other assets1,141,362 70,654 58,038 66,611 1,336,665 
$28,092,486 2,183,333 1,250,570 1,108,863 32,635,252 
Liabilities:
Notes and other debts payable, net$4,639,222 1,197,360 16,930  5,853,512 
Accounts payable and other liabilities5,382,549 136,785 294,845 120,129 5,934,308 
$10,021,771 1,334,145 311,775 120,129 11,787,820 
9

Lennar Corporation and Subsidiaries
Notes to Condensed Consolidated Financial Statements (Unaudited) (Continued)
(In thousands)November 30, 2021
Assets:HomebuildingFinancial
Services
MultifamilyLennar
Other
Total
Cash and cash equivalents$2,735,213 167,021 16,850 2,660 2,921,744 
Restricted cash21,927 12,012   33,939 
Receivables, net (1)490,278 708,165 98,405  1,296,848 
Inventories18,715,304  454,093  19,169,397 
Loans held-for-sale (2) 1,636,351   1,636,351 
Investments in equity securities (3)   1,006,599 1,006,599 
Investments available-for-sale (4)   41,654 41,654 
Loans held-for-investment, net 44,582   44,582 
Investments held-to-maturity 157,808   157,808 
Investments in unconsolidated entities972,084  654,029 346,270 1,972,383 
Goodwill3,442,359 189,699   3,632,058 
Other assets1,090,654 48,729 88,370 66,662 1,294,415 
$27,467,819 2,964,367 1,311,747 1,463,845 33,207,778 
Liabilities:
Notes and other debts payable, net$4,652,338 1,726,026   6,378,364 
Accounts payable and other liabilities5,217,904 180,317 288,930 145,981 5,833,132 
$9,870,242 1,906,343 288,930 145,981 12,211,496 
(1)Receivables, net for Financial Services primarily related to loans sold to investors for which the Company had not yet been paid as of February 28, 2022 and November 30, 2021, respectively.
(2)Loans held-for-sale related to unsold residential and commercial loans carried at fair value.
(3)Investments in equity securities include investments of $168.2 million and $100.1 million without readily available fair values as of February 28, 2022 and November 30, 2021, respectively.
(4)Investments available-for-sale are carried at fair value with changes in fair value recorded as a component of accumulated other comprehensive income (loss) on the condensed consolidated balance sheet.
Financial information relating to the Company’s segments was as follows:
Three Months Ended February 28, 2022
(In thousands)HomebuildingFinancial ServicesMultifamilyLennar OtherCorporate and
unallocated
Total
Revenues (1)$5,752,205 176,701 267,359 7,251  6,203,516 
Operating earnings (loss)1,109,850 90,791 5,427 (403,134) 802,934 
Corporate general and administrative expenses    113,661 113,661 
Charitable foundation contribution    12,538 12,538 
Earnings (loss) before income taxes1,109,850 90,791 5,427 (403,134)(126,199)676,735 
Three Months Ended February 28, 2021
Revenues$4,943,056 244,069 131,443 6,900  5,325,468 
Operating earnings (loss)833,180 146,207 (874)471,346  1,449,859 
Corporate general and administrative expenses    110,531 110,531 
Charitable foundation contribution    12,314 12,314 
Earnings (loss) before income taxes833,180 146,207 (874)471,346 (122,845)1,327,014 
(1)Revenues for Multifamily for the three months ended February 28, 2022 includes $131.6 million of land sales to unconsolidated entities

Homebuilding Segments
Information about homebuilding activities in states which are not economically similar to other states in the same geographic area is grouped under "Homebuilding Other," which is not considered a reportable segment.
Evaluation of segment performance is based primarily on operating earnings (loss) before income taxes. Operations of the Company’s Homebuilding segments primarily include the construction and sale of single-family attached and detached homes as well as the purchase, development and sale of residential land directly and through the Company’s unconsolidated entities.
10

Lennar Corporation and Subsidiaries
Notes to Condensed Consolidated Financial Statements (Unaudited) (Continued)
Operating earnings (loss) for the Homebuilding segments consist of revenues generated from the sales of homes and land, other revenues from management fees and forfeited deposits, equity in earnings (loss) from unconsolidated entities and other income (expense), net, less the cost of homes sold and land sold, and selling, general and administrative expenses incurred by the segment.
The Company’s reportable Homebuilding segments and all other homebuilding operations not required to be reported separately have homebuilding divisions located in:
East: Alabama, Florida, New Jersey, Pennsylvania and South Carolina
Central: Georgia, Illinois, Indiana, Maryland, Minnesota, North Carolina and Virginia
Texas: Texas
West: Arizona, California, Colorado, Idaho, Nevada, Oregon, Utah and Washington
Other: Urban divisions and other homebuilding related investments primarily in California, including FivePoint Holdings, LLC ("FivePoint")
The assets related to the Company’s homebuilding segments were as follows:
(In thousands)EastCentralTexasWestOtherCorporate and UnallocatedTotal Homebuilding
February 28, 2022$6,552,930 3,939,627 3,240,006 11,854,213 1,414,532 1,091,178 28,092,486 
November 30, 20215,854,057 3,782,847 2,801,192 11,171,741 1,443,163 2,414,819 27,467,819 
Financial information relating to the Company’s homebuilding segments was as follows:
Three Months Ended February 28, 2022
(In thousands)EastCentralTexasWestOtherTotal Homebuilding
Revenues
$1,670,186 1,109,272 812,619 2,150,798 9,330 5,752,205 
Operating earnings (loss)351,995 152,078 171,312 441,448 (6,983)1,109,850 
Three Months Ended February 28, 2021
Revenues
$1,355,942 928,442 644,078 2,009,579 5,015 4,943,056 
Operating earnings (loss)262,083 132,023 129,643 321,706 (12,275)833,180 
Financial Services
Operations of the Financial Services segment include primarily mortgage financing, title and closing services primarily for buyers of the Company’s homes. It also includes originating and selling into securitizations commercial mortgage loans through its LMF Commercial business. Financial Services’ operating earnings consist of revenues generated primarily from mortgage financing, title and closing services, and property and casualty insurance, less the cost of such services and certain selling, general and administrative expenses incurred by the segment. The Financial Services segment operates generally in the same states as the Company’s homebuilding operations.
At February 28, 2022, the Financial Services warehouse facilities were all 364-day repurchase facilities and were used to fund residential mortgages or commercial mortgages for LMF Commercial as follows:
(In thousands)Maximum Aggregate Commitment
Residential facilities maturing:
April 2022$100,000 
July 2022400,000 
October 2022200,000 
December 2022500,000 
Total - Residential facilities
$1,200,000 
LMF Commercial facilities maturing
November 2022$100,000 
December 2022400,000 
July 202350,000 
Total - LMF Commercial facilities
$550,000 
Total
$1,750,000 
11

Lennar Corporation and Subsidiaries
Notes to Condensed Consolidated Financial Statements (Unaudited) (Continued)
The Financial Services segment uses the residential facilities to finance its residential lending activities until the mortgage loans are sold to investors and the proceeds are collected. The facilities are non-recourse to the Company and are expected to be renewed or replaced with other facilities when they mature. The LMF Commercial facilities finance LMF Commercial loan originations and securitization activities and were secured by up to an 80% interest in the originated commercial loans financed.
Borrowings and collateral under the facilities and their prior year predecessors were as follows:
(In thousands)February 28, 2022November 30, 2021
Borrowings under the residential facilities$1,021,791 1,482,258 
Collateral under the residential facilities
1,059,876 1,539,641 
Borrowings under the LMF Commercial facilities
29,247 96,294 
If the facilities are not renewed or replaced, the borrowings under the lines of credit will be repaid by selling the mortgage loans held-for-sale to investors and by collecting receivables on loans sold but not yet paid for. Without the facilities, the Financial Services segment would have to use cash from operations and other funding sources to finance its lending activities.
Substantially all of the residential loans the Financial Services segment originates are sold within a short period in the secondary mortgage market on a servicing released, non-recourse basis. After the loans are sold, the Company retains potential liability for possible claims by purchasers that it breached certain limited industry-standard representations and warranties in the loan sale agreements. Purchasers sometimes try to defray losses by purporting to have found inaccuracies related to sellers’ representations and warranties in particular loan sale agreements. Mortgage investors could seek to have the Company buy back mortgage loans or compensate them for losses incurred on mortgage loans that the Company has sold based on claims that the Company breached its limited representations or warranties. The Company’s mortgage operations have established accruals for possible losses associated with mortgage loans previously originated and sold to investors. The Company establishes accruals for such possible losses based upon, among other things, an analysis of repurchase requests received, an estimate of potential repurchase claims not yet received and actual past repurchases and losses through the disposition of affected loans as well as previous settlements. While the Company believes that it has adequately reserved for known losses and projected repurchase requests, given the volatility in the residential mortgage industry and the uncertainty regarding the ultimate resolution of these claims, if either actual repurchases or the losses incurred resolving those repurchases exceed the Company’s expectations, additional recourse expense may be incurred. Loan origination liabilities are included in Financial Services’ liabilities in the Company's condensed consolidated balance sheets. The activity in the Company’s loan origination liabilities was as follows:
Three Months Ended
February 28,
(In thousands)20222021
Loan origination liabilities, beginning of period$11,670 7,569 
Provision for losses966 966 
Payments/settlements(165)(102)
Loan origination liabilities, end of period$12,471 8,433 
LMF Commercial - loans held-for-sale
LMF Commercial originated commercial loans as follows:
Three Months Ended
February 28,
(Dollars in thousands)20222021
Originations (1)$264,845 219,500 
Sold178,082 282,965 
Securitizations12
(1)During both the three months ended February 28, 2022 and 2021 all the commercial loans originated were recorded as loans held-for-sale, which are held at fair value.
Investments held-to-maturity
At February 28, 2022 and November 30, 2021, the Financial Services segment held commercial mortgage-backed securities ("CMBS"). These securities are classified as held-to-maturity based on its intent and ability to hold the securities until maturity and changes in estimated cash flows are reviewed periodically to determine if an other-than-temporary impairment has occurred. Based on the segment’s assessment, no impairment charges were recorded during either the three months ended February 28, 2022 or 2021. The Company has financing agreements to finance CMBS that have been purchased as investments by the Financial Services segment.
12

Lennar Corporation and Subsidiaries
Notes to Condensed Consolidated Financial Statements (Unaudited) (Continued)
Details related to Financial Services' CMBS were as follows:
(Dollars in thousands)February 28, 2022November 30, 2021
Carrying value$156,587 157,808 
Outstanding debt, net of debt issuance costs146,322 147,474 
Incurred interest rate3.4 %3.4 %
February 28, 2022
Discount rates at purchase6%84%
Coupon rates2.0%5.3%
Distribution datesOctober 2027December 2028
Stated maturity datesOctober 2050December 2051
Multifamily
The Company is actively involved, primarily through unconsolidated entities, in the development, construction and property management of multifamily rental properties. The Multifamily segment focuses on developing a geographically diversified portfolio of institutional quality multifamily rental properties in select U.S. markets.
Operations of the Multifamily segment include revenues generated from the sales of land, revenue from construction activities, and management and promote fees generated from joint ventures and equity in earnings (loss) from unconsolidated entities and other gains (which includes sales of buildings), less the cost of sales of land sold, expenses related to construction activities and general and administrative expenses.
Lennar Other
Lennar Other primarily includes strategic investments in technology companies, primarily managed by the Company's LENX subsidiary, and fund interests the Company retained when it sold the Rialto Capital Management ("Rialto") asset and investment management platform. Operations of the Lennar Other segment include operating earnings (loss) consisting of revenues generated primarily from the Company's share of carried interests in the Rialto fund investments retained after the sale of Rialto's asset and investment management platform, along with equity in earnings (loss) from the Rialto fund investments and strategic technology investments, realized and unrealized gains (losses) from investments in equity securities and other income (expense), net from the remaining assets related to the Company's former Rialto segment.
The Company has investments in Opendoor Technologies, Inc. ("Opendoor"), Hippo Holdings, Inc. ("Hippo"), Sunnova ("NOVA"), SmartRent, Inc. ("SmartRent"), Blend Labs, Inc. ("Blend") and Sonder ("SOND"), which are held at market and will therefore change depending on the value of the Company's share holdings in those entities on the last day of each quarter. The following is a detail of Lennar Other unrealized gain (loss):
Three Months Ended
February 28,
20222021
Opendoor (OPEN) mark to market$(143,361)469,745 
Hippo (HIPO) mark to market(124,457) 
Sunnova (NOVA) mark to market(75,041) 
SmartRent (SMRT) mark to market(44,363) 
Blend Labs (BLND) mark to market(7,442) 
Sonder (SOND) mark to market(506) 
$(395,170)469,745 
During the year ended November 30, 2021, Opendoor, Hippo, Sunnova, SmartRent and Blend began trading in the public markets and the Company began to mark to market the Company's shares of share holdings in the public entities. During the three months ended February 28, 2022, shares of Sonder began trading in the public markets and the Company began to mark to market its share holding in the public entity. All the investments are accounted for as investments in equity securities which are held at fair value and the changes in fair values are recognized through earnings. In addition, Doma Holdings, Inc. ("Doma") went public during the year ended November 30, 2021. However, Doma is an investment that continues to be accounted for under the equity method due to the Company's significant ownership interest which allows the Company to exercise significant influence. As of February 28, 2022, the Company owns approximately 26% of Doma and the carrying amount of the Company's investment is $43.9 million.

13

Lennar Corporation and Subsidiaries
Notes to Condensed Consolidated Financial Statements (Unaudited) (Continued)
(3)Investments in Unconsolidated Entities
Homebuilding Unconsolidated Entities
The investments in the Company's Homebuilding unconsolidated entities were as follows:
(In thousands)February 28, 2022November 30, 2021
Investments in unconsolidated entities (1) (2)$1,066,256 972,084 
Underlying equity in unconsolidated entities' net assets (1)1,405,719 1,301,719 
(1)The basis difference was primarily as a result of the Company contributing its investment in three strategic joint ventures with a higher fair value than book value for an investment in the FivePoint entity and deferring equity in earnings on land sales to the Company.
(2)Included in the Company's recorded investments in Homebuilding unconsolidated entities is the Company's 40% ownership of FivePoint. As of February 28, 2022 and November 30, 2021, the carrying amount of the Company's investment was $376.6 million and $381.6 million, respectively.
As of February 28, 2022 and November 30, 2021, the Homebuilding segment's unconsolidated entities had non-recourse debt with completion guarantees of $205.0 million and $241.0 million, respectively.
The Company has an immaterial amount of recourse exposure to debt of the Homebuilding unconsolidated entities in which it has investments. While the Company sometimes guarantees debt of unconsolidated entities, in most instances the Company’s partners have also guaranteed that debt and are required to contribute their shares of any payments. In most instances the amount of guaranteed debt of an unconsolidated entity is less than the value of the collateral securing it.
As of both February 28, 2022 and November 30, 2021, the fair values of the repayment guarantees, maintenance guarantees, and completion guarantees were not material. The Company believes that as of February 28, 2022, in the event it becomes legally obligated to perform under a guarantee of the obligation of a Homebuilding unconsolidated entity due to a triggering event under a guarantee, the collateral would be sufficient to repay at least a significant portion of the obligation or the Company and its partners would contribute additional capital into the venture. In certain instances, the Company has placed performance letters of credit and surety bonds with municipalities with regard to obligations of its joint ventures (see Note 7 of the Notes to Condensed Consolidated Financial Statements).
In the first quarter of 2021, the Company formed the Upward America Venture ("Upward America"), and is managing and participating in Upward America. Upward America is an investment fund that acquires new single-family homes in high growth markets across the United States and rents them to people who will live in them. Upward America has raised equity commitments totaling $1.6 billion, including $350 million of equity commitments raised during the quarter ended February 28, 2022. The commitments are primarily from institutional investors, including $125 million committed by Lennar. Including leverage, Upward America will be positioned to acquire over $4.0 billion of new single family homes and townhomes from Lennar and potentially other homebuilders.
Multifamily Unconsolidated Entities
The unconsolidated entities in which the Multifamily segment has investments usually finance their activities with a combination of partner equity and debt financing. In connection with many of the bank loans to Multifamily unconsolidated entities, the Company (or entities related to them) has been required to give guarantees of completion and cost over-runs to the lenders and partners. The details related to these are unchanged from the disclosure in the Company's Notes to the Financial Statements section in its Form 10-K for the year ended November 30, 2021. As of both February 28, 2022 and November 30, 2021, the fair value of the completion guarantees was immaterial. As of February 28, 2022 and November 30, 2021, Multifamily segment's unconsolidated entities had non-recourse debt with completion guarantees of $985.1 million and $855.2 million, respectively.
In many instances, the Multifamily segment is appointed as the construction, development and property manager for its Multifamily unconsolidated entities and receives fees for performing this function. The Multifamily segment also provides general contractor services for construction of some of the rental properties owned by unconsolidated entities in which the Company has investments. The details of the activity was as follows:
Three Months Ended
February 28,
(In thousands)20222021
General contractor services, net of deferrals$117,263 115,399 
General contractor costs113,233 110,453 
Management fee income13,127 14,871