NVR, Inc. engages in the construction and sale of single-family detached homes, townhomes and condominium buildings, all of which are primarily constructed on a pre-sold basis.
To serve customers of its homebuilding operations, the company also operates a mortgage banking and title services business. It conducts its homebuilding activities directly. The company’s mortgage banking operations are operated primarily through a wholly owned subsidiary, NVR Mortgage Finance, Inc. (NVRM).
The company is a major homebuilder in the United States. It operates in thirty-four metropolitan areas in fourteen states, and Washington, D.C.
The company’s homebuilding operations include the construction and sale of single-family detached homes, townhomes and condominium buildings under three trade names: Ryan Homes, NVHomes and Heartland Homes. Its Ryan Homes product is marketed primarily to first-time and first-time move-up buyers. Ryan Homes operates in thirty-four metropolitan areas located in Maryland, Virginia, Washington, D.C., West Virginia, Pennsylvania, New York, North Carolina, South Carolina, Florida, Ohio, New Jersey, Delaware, Indiana, Illinois and Tennessee. The company’s NVHomes and Heartland Homes products are marketed primarily to move-up and luxury buyers. NVHomes operates in Delaware and the Washington, D.C., Baltimore, Maryland and Philadelphia, Pennsylvania metropolitan areas. Heartland Homes operates in the Pittsburgh, Pennsylvania metropolitan area.
In addition to building and selling homes, the company provides various mortgage-related services through its mortgage banking operations. Through operations in each of its homebuilding markets, NVRM originates mortgage loans exclusively for its homebuyers. NVRM generates revenues primarily from origination fees, gains on the sale of loans and title fees. NVRM sells all of the mortgage loans it closes into the secondary markets on a servicing released basis.
The company offers single-family detached homes, townhomes and condominium buildings with various basic home designs. These home designs have a variety of elevations and numerous other options. Its homes combine traditional, transitional, cottage or urban exterior designs with contemporary interior designs and amenities, generally include two to four bedrooms and range from approximately 1,000 to 10,000 finished square feet.
The company’s four homebuilding segments operate in the following geographic regions:
Mid Atlantic: Maryland, Virginia, West Virginia, Delaware and Washington, D.C.
North East: New Jersey and Eastern Pennsylvania.
Mid East: New York, Ohio, Western Pennsylvania, Indiana and Illinois.
South East: North Carolina, South Carolina, Florida and Tennessee.
The company utilizes independent subcontractors under fixed price contracts to perform construction work on its homes. It uses various independent subcontractors in its markets.
Sales and Marketing
The company’s preferred marketing method is for customers to visit a furnished model home featuring various built-in options and a landscaped lot. The garages of these model homes are converted into temporary sales centers where alternative facades and floor plans are displayed and designs for other models are available for review.
The company provides various mortgage related services to its homebuilding customers through its mortgage banking operations. Its mortgage banking operations also include separate subsidiaries that broker title insurance and perform title searches in connection with mortgage loan closings for which they receive commissions and fees. As NVRM originates mortgage loans exclusively for its homebuilding customers, NVRM is dependent on the company’s homebuilding segment. In 2021, NVRM closed approximately 17,700 loans.
NVRM sells all of the mortgage loans it closes to investors in the secondary markets on a servicing released basis, typically within 30 days from the loan closing. NVRM is an approved seller/servicer for Fannie Mae (FNMA) and Freddie Mac (FHLMC) mortgage loans and an approved seller/issuer of Ginnie Mae (GNMA), Department of Veterans Affairs (VA) and Federal Housing Administration (FHA) mortgage loans.
NVRM is subject to the rules and regulations of FNMA, GNMA, FHLMC, VA and FHA. In addition, NVRM is subject to regulation at the state and federal level, including regulations issued by the Consumer Financial Protection Bureau with respect to specific origination, selling and servicing practices.
NVR, Inc. was founded in 1980.