filings.toolsItem 3. Quantitative and Qualitative Disclosures About Market Risk
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Item 3. Quantitative and Qualitative Disclosures About Market Risk
We are exposed to market risks related to fluctuations in interest rates on our investments, debt obligations and loans held-for-sale. We utilize forward commitments, option contracts and interest rate swaps to mitigate the risks associated with our mortgage loan portfolio. Since November 30, 2025, there have been no material changes in market risk exposures associated with interest rate risk.
As of August 31, 2026, we had $650 million outstanding borrowings under our Credit Facility.
As of August 31, 2026, our borrowings under Financial Services' warehouse repurchase facilities totaled $1.4 billion under residential facilities and $20.6 million under LMF Commercial facilities.
Information Regarding Interest Rate Sensitivity
Principal (Notional) Amount by
Expected Maturity and Average Interest Rate
August 31, 2026
| Three Months Ending November 30, | Years Ending November 30, | Fair Value at August 31, | |||||||||||||||||||||||||||||||||||||||||||||||||||
| (Dollars in millions) | 2026 | 2027 | 2028 | 2029 | 2030 | 2031 | Thereafter | Total | 2026 | ||||||||||||||||||||||||||||||||||||||||||||
| LIABILITIES: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Homebuilding: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Senior Notes and other debts payable: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Fixed rate | $ | 22.1 | 1,190.8 | 12.3 | 11.5 | 701.5 | 9.3 | — | 1,947.5 | 1,950.5 | |||||||||||||||||||||||||||||||||||||||||||
| Average interest rate | 2.9 | % | 4.8 | % | 3.9 | % | 7.5 | % | 5.2 | % | 6.6 | % | — | 5.0 | % | — | |||||||||||||||||||||||||||||||||||||
| Variable rate | $ | 650.0 | — | 1,710.0 | — | — | — | — | 2,360.0 | 2,360.0 | |||||||||||||||||||||||||||||||||||||||||||
| Average interest rate | 4.7 | % | — | 4.7 | % | — | — | — | — | 4.7 | % | — | |||||||||||||||||||||||||||||||||||||||||
| Financial Services: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Notes and other debts payable: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Fixed rate | $ | — | — | — | — | — | — | 114.9 | 114.9 | 115.3 | |||||||||||||||||||||||||||||||||||||||||||
| Average interest rate | — | — | — | — | — | — | 3.4 | % | 3.4 | % | — | ||||||||||||||||||||||||||||||||||||||||||
| Variable rate | $ | 1,469.5 | — | — | — | — | — | — | 1,469.5 | 1,469.5 | |||||||||||||||||||||||||||||||||||||||||||
| Average interest rate | 5.1 | % | — | — | — | — | — | — | 5.1 | % | — | ||||||||||||||||||||||||||||||||||||||||||
For additional information regarding our market risk refer to Item 7A. Quantitative and Qualitative Disclosures About Market Risk in our 2025 Form 10-K.
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