8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of Earliest Event Reported): October 24, 2007

M.D.C. Holdings, Inc.

(Exact name of registrant as specified in its charter)

Delaware	1-8951	84-0622967
(State or other jurisdiction of incorporation)	(Commission file number)	(I.R.S. employer identification no.)

4350 South Monaco Street, Suite 500, Denver, Colorado 80237

(Address of principal executive offices) (Zip code)

Registrant’s telephone number, including area code: (303) 773-1100

Not Applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

TABLE OF CONTENTS

ITEM 1.01	ENTRY INTO A MATERIAL DEFINITIVE AGREEMENT
ITEM 2.02	RESULTS OF OPERATIONS AND FINANCIAL CONDITION
ITEM 9.01	FINANCIAL STATEMENTS AND EXHIBITS
SIGNATURES
INDEX TO EXHIBITS
First Amendment to Second Amended and Restated Credit Agreement
Press Release

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ITEM 1.01 ENTRY INTO A MATERIAL DEFINITIVE AGREEMENT

On October 24, 2007, M.D.C. Holdings, Inc. (the “Company”) entered into a First Amendment to its Second Amended and Restated Credit Agreement, dated as of March 22, 2006, with JPMorgan Chase Bank, N.A., as Administrative Agent, and the lenders that are signatories thereto. The First Amendment reset the consolidated tangible net worth base amount of the Consolidated Tangible Net Worth Test. A copy of the First Amendment is filed with this Form 8-K as Exhibit 10.1.

ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION

On October 24, 2007, the Company issued a press release reporting its third quarter and first nine months results for 2007. A copy of this press release is attached hereto as Exhibit 99.1.

Limitation on Incorporation by Reference. The information being furnished shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, (“Exchange Act”) or otherwise subject to the liabilities of that section, nor shall such information be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act except as shall be expressly set forth by specific reference in such a filing.

ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS

Exhibit Number	Description
Exhibit 10.1	First Amendment to Second Amended and Restated Credit Agreement, dated as of October 24, 2007
Exhibit 99.1	Press Release dated October 24, 2007

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	M.D.C. HOLDINGS, INC.
Dated: October 24, 2007	By:	/s/ Joseph H. Fretz
		Joseph H. Fretz
		Secretary and Corporate Counsel

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INDEX TO EXHIBITS

Exhibit Number	Description
Exhibit 10.1	First Amendment to Second Amended and Restated Credit Agreement, dated as of October 24, 2007
Exhibit 99.1	Press Release dated October 24, 2007

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EX-10.1

Exhibit 10.1

FIRST AMENDMENT TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT

     This FIRST AMENDMENT TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT (“Amendment”), dated as of October 24, 2007, among M.D.C. HOLDINGS, INC., a Delaware corporation (the “Borrower”), the Lenders that are identified on the signature pages hereto and JPMORGAN CHASE BANK, N.A., as Administrative Agent (the “Administrative Agent”).

RECITALS

     WHEREAS, the Borrower, the Lenders identified on the signature pages hereto, certain other Lenders and Administrative Agent are parties to that certain Second Amended and Restated Credit Agreement dated as of March 22, 2006 (as it may be amended, renewed and restated from time to time, the “Credit Agreement”) (all capitalized terms not defined herein shall have the meanings given such terms in the Credit Agreement);

     WHEREAS, the Borrower and the Lenders desire to amend the Credit Agreement for the purposes hereinafter set forth;

     NOW, THEREFORE, for good and valuable consideration, the parties hereto hereby agree as follows:

     1. Consolidated Tangible Net Worth Test. Section 9.1 of the Credit Agreement is hereby amended and restated in its entirety as follows:

     9.1 Consolidated Tangible Net Worth Test. Consolidated Tangible Net Worth shall not be less than (i) $1,405,020,000 plus (ii) fifty percent (50%) of consolidated net income of Borrower and the Guarantors earned after September 30, 2007 (excluding any quarter in which there is a loss but applying consolidated net income of Borrower and the Guarantors thereafter first to such loss before determining fifty percent (50%) of such amount for purposes of this calculation) plus (iii) fifty percent (50%) of the net proceeds or other consideration received by Borrower for capital stock issued by Borrower after September 30, 2007, minus (iv) the lesser of (A) the aggregate amount paid by Borrower after September 30, 2007 to repurchase its common stock and (B) $300,000,000, (the foregoing covenant, as adjusted as provided in the next succeeding sentence, is herein referred to as the “Consolidated Tangible Net Worth Test”). Notwithstanding the foregoing, in the event that Borrower shall at any time engage in an Acquisition for a purchase price equaling or exceeding $100,000,000, Borrower may irrevocably elect, by notice to the Administrative Agent given prior to the last day of the fiscal quarter in which such Acquisition occurs, to adjust minimum Consolidated Tangible Net Worth for the Consolidated Tangible Net Worth Test to the following amount: (i) 80% of the Consolidated Tangible Net Worth immediately following the closing of such Acquisition, plus (ii) an amount equal to 50% of the consolidated net income of Borrower and Guarantors earned after the closing of such Acquisition (excluding any quarter in which there is a loss but applying net income thereafter first to such loss before determining 50% of such amount for purposes of this calculation), plus (iii) 50% of the net proceeds

or other consideration received by Borrower for any capital stock issued after the closing of such Acquisition, minus (iv) the lesser of (A) the aggregate amount paid by Borrower after the closing of such Acquisition to repurchase its common stock and (B) the amount (but not less than zero) obtained by subtracting from $300,000,000 the aggregate amount (if any) paid by Borrower to repurchase its common stock after September 30, 2007 and prior to such Acquisition. Borrower may make the election under the preceding sentence only if it makes the corresponding election under Section 9.3 at the same time. Borrower’s compliance with the Consolidated Tangible Net Worth Test shall be measured on a quarterly basis, based on the financial statements delivered to Administrative Agent pursuant to Section 7.1. Borrower’s failure to satisfy the Consolidated Tangible Net Worth Test shall not constitute an Event of Default or an Unmatured Event of Default; provided, however, that if Borrower fails to satisfy the Consolidated Tangible Net Worth Test at the end of any fiscal quarter, then the Term Out Period shall commence on the first day following such fiscal quarter as provided in Section 2.22.

          The form of Compliance Certificate attached as Exhibit F to the Credit Agreement is hereby amended to conform to the foregoing changes in the Consolidated Tangible Net Worth Test.

     2. Conditions Precedent. This Amendment shall be effective as of the date (“Amendment Effective Date”) upon which the following conditions are satisfied:

     (a) The Administrative Agent shall have received from the Borrower and the Required Lenders a counterpart of this Amendment signed on behalf of each such party.

     (b) The Administrative Agent shall have received from the Guarantors the Consent and Agreement substantially in the form attached hereto as Exhibit A.

     (c) The Administrative Agent shall have received such documents and certificates as the Administrative Agent or its counsel may reasonably request relating to the organization or formation, existence and good standing of the Borrower, the authorization of this Amendment and any other legal matters relating to the Borrower, the Agreement or this Amendment, all in form and substance satisfactory to the Administrative Agent and its counsel.

     (d) The Administrative Agent shall have received all fees and other amounts due and payable on or prior to the Amendment Effective Date, including reimbursement or payment of all out-of-pocket expenses required to be reimbursed or paid by the Borrower hereunder.

          The Administrative Agent shall notify the Borrower and the Lenders of the Amendment Effective Date, and such notice shall be conclusive and binding.

     3. Representations and Warranties. The Borrower hereby represents and warrants that as of the date hereof:

     (a) The representations and warranties of the Borrower in the Credit Agreement are true and correct in all material respects.

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     (b) There exists no Event of Default or Unmatured Event of Default.

     4. Ratification. The Credit Agreement, as amended hereby, is hereby ratified and remains in full force and effect.

     5. Counterparts. This Amendment may be executed in any number of counterparts, all of which taken together shall constitute one agreement and any of the parties hereto may execute this Amendment by signing any such counterpart.

     6. Choice of Law. This Amendment and the other Loan Documents shall be construed in accordance with the internal laws (but without regard to the conflict of laws provisions other than Section 5-1401 of the New York General Obligations Law ) of the State of New York, but giving effect to federal laws applicable to national banks.

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     IN WITNESS WHEREOF, the Borrower and the undersigned Lenders have caused this Amendment to be duly executed as of the date first above written.

Borrower: M.D.C. HOLDINGS, INC.
By:	/s/ John J. Heaney
Name:	John J. Heaney
Title:	Senior Vice President and Treasurer

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Lenders: JPMORGAN CHASE BANK, N.A., As Lender and Administrative Agent
By:	/s/ Vanessa Chiu
Name:	Vanessa Chiu
Its:	Vice President

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SIGNATURE PAGE TO M.D.C. HOLDINGS, INC.
FIRST AMENDMENT TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT

WACHOVIA BANK, NATIONAL ASSOCIATION
By:	/s/ R. Scott Holtzapple
Name:	R. Scott Holtzapple
Title:	Senior Vice President

SIGNATURE PAGE TO M.D.C. HOLDINGS, INC.
FIRST AMENDMENT TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT

CITICORP NORTH AMERICA, INC.
By:	/s/ R. Tucker Borden
Name:	R. Tucker Borden
Title:	Vice President

SIGNATURE PAGE TO M.D.C. HOLDINGS, INC.
FIRST AMENDMENT TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT

SUNTRUST BANK
By:	/s/ W. John Wendler
Name:	W. John Wendler
Title:	Senior Vice President

SIGNATURE PAGE TO M.D.C. HOLDINGS, INC.
FIRST AMENDMENT TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT

THE ROYAL BANK OF SCOTLAND plc
By:	/s/ William McGinty
Name:	William McGinty
Title:	Senior Vice President

SIGNATURE PAGE TO M.D.C. HOLDINGS, INC.
FIRST AMENDMENT TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT

U.S. BANK NATIONAL ASSOCIATION
By:	/s/ Sandra A. Sauer
Name:	Sandra A. Sauer
Title:	Vice President

SIGNATURE PAGE TO M.D.C. HOLDINGS, INC.
FIRST AMENDMENT TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT

BANK OF AMERICA, N.A.
By:	/s/ Stephen B. Carlson
Name:	Stephen B. Carlson
Title:	Vice President

SIGNATURE PAGE TO M.D.C. HOLDINGS, INC.
FIRST AMENDMENT TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT

GUARANTY BANK
By:	/s/ Dan M. Killian
Name:	Dan M. Killian
Title:	Senior Vice President

SIGNATURE PAGE TO M.D.C. HOLDINGS, INC.
FIRST AMENDMENT TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT

WASHINGTON MUTUAL BANK, FA
By:	/s/ John Thomas
Name:	John Thomas
Title:	Vice President

SIGNATURE PAGE TO M.D.C. HOLDINGS, INC.
FIRST AMENDMENT TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT

BNP PARIBAS
By:	/s/ Duane Helkowski
Name:	Duane Helkowski
Title:	Managing Director

By:	/s/ Melissa Balley
Name:	Melissa Balley
Title:	Vice President

SIGNATURE PAGE TO M.D.C. HOLDINGS, INC.
FIRST AMENDMENT TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT

CALIFORNIA BANK & TRUST
By:	/s/ Kirk K. Monroe
Name:	Kirk K. Monroe
Title:	Senior Vice President

SIGNATURE PAGE TO M.D.C. HOLDINGS, INC.
FIRST AMENDMENT TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT

COMERICA BANK
By:	/s/ Adam Sheets
Name:	Adam Sheets
Title:	Assistant Vice President

SIGNATURE PAGE TO M.D.C. HOLDINGS, INC.
FIRST AMENDMENT TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT

REGIONS BANK
By:	/s/ Daniel McClurkin
Name:	Daniel McClurkin
Title:	Assistant Vice President

SIGNATURE PAGE TO M.D.C. HOLDINGS, INC.
FIRST AMENDMENT TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT

BANK OF THE WEST, a California banking corporation
By:	/s/ Jan Manista
Name:	Jan Manista
Title:	Vice President

By:	/s/ Chuck Weerasooriya
Name:	Chuck Weerasooriya
Title:	Senior Vice President

SIGNATURE PAGE TO M.D.C. HOLDINGS, INC.
FIRST AMENDMENT TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT

CALYON NEW YORK BRANCH
By:	/s/ Robert Nelson
Name:	Robert Nelson
Title:	Managing Director

By:	/s/ Brian Myers
Name:	Brian Myers
Title:	Managing Director

SIGNATURE PAGE TO M.D.C. HOLDINGS, INC.
FIRST AMENDMENT TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT

KEYBANK NATIONAL ASSOCIATION
By:	/s/ Jeff V. Aycock, CFA
Name:	Jeff V. Aycock, CFA
Title:	Senior Banker

SIGNATURE PAGE TO M.D.C. HOLDINGS, INC.
FIRST AMENDMENT TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT

MIZUHO CORPORATE BANK, LTD.
By:	/s/ Yasuo Imaizumi
Name:	Yasuo Imaizumi
Title:	Senior Vice President

SIGNATURE PAGE TO M.D.C. HOLDINGS, INC.
FIRST AMENDMENT TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT

NATIXIS
By:	/s/ Marie-Edith Dugeny
Name:	Marie-Edith Dugeny
Title:	Managing Director

By:	/s/ Timothee Delpont
Name:	Timothee Delpont
Title:	Associate

SIGNATURE PAGE TO M.D.C. HOLDINGS, INC.
FIRST AMENDMENT TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT

PNC BANK, NATIONAL ASSOCIATION
By:	/s/ Douglas G. Paul
Name:	Douglas G. Paul
Title:	Senior Vice President

SIGNATURE PAGE TO M.D.C. HOLDINGS, INC.
FIRST AMENDMENT TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT

RBC CENTURA BANK, a North Carolina banking corporation
By:	/s/ Carolynn Alexander
Name:	Carolynn Alexander
Title:	Vice President

SIGNATURE PAGE TO M.D.C. HOLDINGS, INC.
FIRST AMENDMENT TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT

CITY NATIONAL BANK
By:	/s/ Xavier Barrera
Name:	Xavier Barrera
Title:	Vice President

SIGNATURE PAGE TO M.D.C. HOLDINGS, INC.
FIRST AMENDMENT TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT

COMPASS BANK
By:	/s/ John C. Lozano
Name:	John C. Lozano
Title:	Vice President

SIGNATURE PAGE TO M.D.C. HOLDINGS, INC.
FIRST AMENDMENT TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT

FIFTH THIRD BANK
By:	/s/ Michael R. Zaksheske
Name:	Michael R. Zaksheske
Title:	Vice President

Exhibit A

CONSENT AND AGREEMENT OF GUARANTORS

     THIS CONSENT AND AGREEMENT OF GUARANTORS (“Consent”) is executed and delivered as of October ___, 2007, by the undersigned (the “Guarantors”), in favor of the “Lenders” under that certain Second Amended and Restated Credit Agreement dated March 22, 2006, among M.D.C. Holdings, Inc., the Lenders from time to time parties thereto and JPMorgan Chase Bank, N.A., in its capacity as Administrative Agent. Such Second Amended and Restated Credit Agreement, as it has been and may be amended, modified or supplemented from time to time, is hereinafter referred to as the “Credit Agreement.” Unless otherwise defined herein, capitalized terms used herein shall have the meanings ascribed to them in the Credit Agreement.

W I T N E S S E T H:

     WHEREAS, the Guarantors have executed and delivered a Second Amended and Restated Guaranty dated March 22, 2006 in favor of the Lenders under the Credit Agreement (the “Guaranty”); and

     WHEREAS, the Borrower, the Administrative Agent and the Required Lenders have entered into that certain First Amendment to Second Amended and Restated Credit Agreement of even date herewith amending the Credit Agreement (the “Amendment”); and

     WHEREAS, it is a condition to the Amendment that the Guarantors shall have executed this Consent;

     NOW THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Guarantors hereby consent to the Amendment and agree that the Guaranty continues in full force and effect with respect to the undersigned Guarantors.

     IN WITNESS WHEREOF, this Consent has been duly executed by the Guarantors as of the day and year first set forth above.

[Guarantors]

EX-99.1

Exhibit 99.1

NEWS BULLETIN

M.D.C. HOLDINGS, INC. RICHMOND AMERICAN HOMES
HOMEAMERICAN MORTGAGE

FOR IMMEDIATE RELEASE
WEDNESDAY, OCTOBER 24, 2007

Contacts:	Paris G. Reece III	Robert N. Martin	Joëlle Lipski-Rockwood
	Chief Financial Officer	Investor Relations	Corporate Communications
	(303) 804-7706	(720) 977-3431	(720) 977-3204
	greece@mdch.com	bob.martin@mdch.com	joelle.lipski-rockwood@mdch.com

M.D.C. HOLDINGS ANNOUNCES THIRD QUARTER 2007 RESULTS

• Net loss of $155.4 million; diluted loss per share of $3.40

• Pre-tax loss of $251.3 million; includes asset impairments and project cost write-offs of $254.1 million

• Cash flow from operations of $136.2 million; $740.0 million over last 12 months

• Quarter-end cash of $729 million; no borrowings on homebuilding line of credit

• Ending cash and available borrowing capacity of $1.96 billion

• Total revenue of $686.7 million; $1.08 billion in 2006

• Closed 1,963 homes at an average selling price of $331,700

• Net orders for 1,228 homes with an estimated value of $365.0 million

     DENVER, Wednesday, October 24, 2007 — M.D.C. Holdings, Inc. (NYSE: MDC) today announced a net loss for the quarter ended September 30, 2007 of $155.4 million, or $3.40 per diluted share, which included pre-tax charges of $249.0 million for asset impairments and $5.1 million for write-offs of deposits and pre-acquisition costs associated with land option contracts the Company does not intend to pursue. Net income for the third quarter of 2006 was $48.7 million, or $1.06 per diluted share, including pre-tax charges of $19.9 million for asset impairments and $7.3 million for write-offs of deposits and pre-acquisition costs. Total revenue for the third quarter of 2007 was $686.7 million, compared with revenue of $1.08 billion for the same period in 2006.

     Net loss for the nine months ended September 30, 2007 was $355.8 million, or $7.79 per diluted share, which included pre-tax charges of $551.4 million for asset impairments and $15.6 million for write-offs of deposits and pre-acquisition costs. Net income for the first nine months of 2006 was $220.6 million, or $4.80 per diluted share, including pre-tax charges of $20.8 million for asset impairments and $23.0 million for write-offs of deposits and pre-acquisition

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M.D.C. HOLDINGS, INC.

costs. Total revenue for the first nine months of 2007 was $2.15 billion, compared with revenue of $3.46 billion for the same period in 2006.

     Larry A. Mizel, MDC’s chairman and chief executive officer, stated, “Throughout these turbulent times for the homebuilding industry, we have remained focused on improving our investment grade balance sheet, strengthening our financial position and enhancing our operating structure and processes in preparation for an eventual recovery.”

     Mizel continued, “We have generated cash flow from operations of $740 million over the last 12 months, including more than $130 million in this third quarter, primarily as a result of significant reductions in our inventories of land, homes under construction and mortgage loans. This cash flow raised our quarter-end cash balance to $730 million, with no borrowings outstanding on our $1.25 billion line of credit, increasing our cash and available borrowing capacity year-over-year by 45% to nearly $2.0 billion. Having already reduced the lots we control by more than 40% over the past year, we kept our expenditures for land acquisition to a small fraction of prior-year amounts. At the same time, we tightened our controls on cash outflows for land development and home starts, while continuing to work with our suppliers and subcontractors to achieve further reductions in the costs of home construction. Finally, to reduce our overhead and increase our efficiency in these difficult times, our organization has continued its downsizing and realignment efforts, reducing the number of our homebuilding divisions to 17 from 27 at the beginning of 2006, and lowering our employee headcount by almost 40% during the same period.”

Homebuilding Results

     Homebuilding loss before taxes for the quarter and nine months ended September 30, 2007 was $258.0 million and $568.3 million, respectively, compared with income before taxes of $82.3 million and $385.8 million for the same periods in 2006. The pre-tax differences were driven in large part by the asset impairment charges discussed above, as well as significant declines in home closings and home gross margins from the levels achieved during the same periods in 2006. These income decreases were offset partially by the impact of reduced homebuilding commissions, marketing, general and administrative expenses (“SG&A”).

     The Company closed 1,963 homes and produced home gross margins of 14.1% in the 2007 third quarter, compared with 2,955 home closings and home gross margins of 22.5% for the same period in 2006. For the nine months ended September 30, 2007, the Company closed 5,995 homes and produced home gross margins of 14.7%, compared with 9,529 home closings and home gross margins of 24.3% for the nine months ended September 30, 2006. Average selling prices were $331,700 and $342,100, respectively, for the quarter and nine months ended September 30, 2007, down $23,900 and $10,200 from the same periods in 2006. Homebuilding SG&A decreased to $105.2 million and $330.1 million, respectively, for the three and nine months ended September 30, 2007, compared with $137.0 million and $418.3 million for the same periods in the prior year.

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M.D.C. HOLDINGS, INC.

     Paris G. Reece III, MDC’s executive vice president and chief financial officer, said, “During the 2007 third quarter, we continued to battle adverse conditions in all of our homebuilding markets. As buyer confidence continued to erode and competition for new home sales intensified, we experienced reduced selling prices and increased incentive levels in most of our markets, which decreased our performance expectations with respect to certain subdivisions in these markets. As a consequence, we recognized $249 million in inventory impairments with respect to more than 7,000 lots in 132 subdivisions, which largely accounted for our third quarter loss. Land inventory was impaired by $192 million and work-in-process inventory was impaired by $57 million. The quarter-end book value of the impaired subdivisions after the impairments was $873 million, consisting of $403 million of land and $470 million of work-in-process. As has been the case in each of the last three quarters, the impairments this quarter primarily occurred in our West homebuilding segment, with more than 75% applicable to subdivisions in our Arizona, Nevada and California markets. Over the last five quarters, we have impaired approximately 55% of the 18,500 lots we owned at the end of our 2007 third quarter.”

Financial Services and Other Results

     Income before taxes from the Company’s Financial Services and Other segment for the quarter and nine months ended September 30, 2007 was $5.0 million and $16.8 million, respectively, compared with $13.0 million and $35.2 million for the same periods in the previous year. The decreases in both 2007 periods primarily resulted from lower gains on sales of mortgage loans, as the dollar volumes of mortgage loan originations and mortgage loans sold declined in line with builder home closings. Additionally, in an effort to reduce its exposure to the risks inherent in holding mortgage loans, the Company continued to sell loans more quickly, resulting in less profitable loan sales during the quarter.

Home Orders and Backlog

     MDC received orders, net of cancellations, for 1,228 homes with an estimated sales value of $365.0 million during the 2007 third quarter, compared with net orders for 2,120 homes with an estimated sales value of $678.0 million during the same period in 2006. For the nine months ended September 30, 2007, the Company received net orders for 5,756 homes with a sales value of $1.92 billion, compared with orders for 8,658 homes with a sales value of $2.95 billion for the nine months ended September 30, 2006. During the third quarter and first nine months of 2007, the Company’s approximate order cancellation rates were 57% and 44%, respectively, compared with rates of 49% and 40% experienced during the same periods in 2006. The Company ended the third quarter of 2007 with a backlog of 3,399 homes with an estimated sales value of $1.21 billion, compared with a backlog of 5,661 homes with an estimated sales value of $2.10 billion at September 30, 2006.

     MDC, whose subsidiaries build homes under the name “Richmond American Homes,” is one of the top ten homebuilders in the United States, based on 2006 revenue. The Company also

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M.D.C. HOLDINGS, INC.

provides mortgage financing, primarily for MDC’s homebuyers, through its wholly owned subsidiary HomeAmerican Mortgage Corporation. MDC, a Fortune 500 Company, is a major regional homebuilder with a significant presence in Colorado, Jacksonville, Las Vegas, Maryland, Northern California, Northern Virginia, Phoenix, Salt Lake City, Southern California and Tucson. MDC also has established operating divisions in Chicago, Philadelphia/Delaware Valley and West Florida. For more information about our Company, please visit RichmondAmerican.com.

Forward-Looking Statements

     Certain statements in this release, including statements regarding our business, financial condition, results of operation, cash flows, strategies and prospects, constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include, among other things, (1) general economic and business conditions, including changes in cancellation rates, net home orders, home gross margins, and land and home values; (2) changes in interest rates, mortgage lending programs and the availability of credit; (3) the relative stability of debt and equity markets; (4) competition; (5) the availability and cost of land and other raw materials used by the Company in its homebuilding operations; (6) the availability and cost of performance bonds and insurance covering risks associated with our business; (7) shortages and the cost of labor; (8) weather related slowdowns; (9) slow growth initiatives; (10) building moratoria; (11) governmental regulation, including the interpretation of tax, labor and environmental laws; (12) changes in consumer confidence and preferences; (13) required accounting changes; (14) terrorist acts and other acts of war; and (15) other factors over which the Company has little or no control. Additional information about the risks and uncertainties applicable to the Company’s business is contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2006 and Form 10-Q for the quarter ended June 30, 2007, which were filed with the Securities and Exchange Commission. All forward-looking statements made in this press release are made as of the date hereof, and the risk that actual results will differ materially from expectations expressed in this press release will increase with the passage of time. The Company undertakes no duty to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise. However, any further disclosures made on related subjects in our subsequent filings, releases or presentations should be consulted.

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M.D.C. HOLDINGS, INC.
Consolidated Statements of Operations
(In thousands, except per share amounts)
(Unaudited)

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2007			2006			2007			2006
REVENUE
Home sales revenue	$	651,124		$	1,050,700		$	2,050,737		$	3,356,416
Land sales revenue		2,700			3,336			12,151			18,812
Other revenue		32,837			26,887			85,605			83,101
Total Revenue		686,661			1,080,923			2,148,493			3,458,329
COSTS AND EXPENSES
Home cost of sales		559,402			813,824			1,749,165			2,540,381
Land cost of sales		452			3,210			7,740			18,124
Asset impairments		248,950			19,915			551,422			20,775
Marketing expenses		28,694			31,296			87,144			91,899
Commission expenses		23,900			36,390			71,530			106,627
General and administrative expenses		76,482			99,779			247,229			326,595
Related party expenses		95			88			286			2,792
Total Costs and Expenses		937,975			1,004,502			2,714,516			3,107,193
(Loss) income before income taxes		(251,314	)		76,421			(566,023	)		351,136
Benefit from (provision for) income taxes		95,936			(27,715	)		210,175			(130,518	)
NET (LOSS) INCOME	$	(155,378	)	$	48,706		$	(355,848	)	$	220,618
(LOSS) EARNINGS PER SHARE
Basic	$	(3.40	)	$	1.08		$	(7.79	)	$	4.91
Diluted	$	(3.40	)	$	1.06		$	(7.79	)	$	4.80
WEIGHTED-AVERAGE SHARES
Basic		45,751			44,972			45,659			44,911
Diluted		45,751			45,868			45,659			45,932
DIVIDENDS DECLARED PER SHARE	$	0.25		$	0.25		$	0.75		$	0.75

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M.D.C. HOLDINGS, INC.
Consolidated Balance Sheets
(Dollars in thousands, except per share amounts)
(Unaudited)

	September 30,			December 31,
	2007			2006
ASSETS
Cash and cash equivalents	$	729,479		$	507,947
Restricted cash		1,633			2,641
Home sales and other receivables		66,891			143,936
Mortgage loans held in inventory, net		72,863			212,903
Income taxes receivable, net		22,748			—
Inventories
Housing completed or under construction		1,267,478			1,178,671
Land and land under development		754,728			1,575,158
Property and equipment, net		47,020			44,606
Deferred income taxes		306,942			124,880
Prepaid expenses and other assets, net		91,471			119,133
Total Assets	$	3,361,253		$	3,909,875
LIABILITIES
Accounts payable	$	150,037		$	171,005
Accrued liabilities		369,168			418,953
Income taxes payable		—			28,485
Related party liabilities		701			2,401
Homebuilding line of credit		—			—
Mortgage line of credit		41,957			130,467
Senior notes, net		996,986			996,682
Total Liabilities		1,558,849			1,747,993
COMMITMENTS AND CONTINGENCIES		—			—
STOCKHOLDERS’ EQUITY
Preferred stock, $0.01 par value; 25,000,000 shares authorized; none issued or outstanding		—			—
Common stock, $0.01 par value; 250,000,000 shares authorized; 45,869,000 and 45,838,000 issued and outstanding, respectively, at September 30, 2007 and 45,179,000 and 45,165,000 issued and outstanding, respectively, at December 31, 2006		459			452
Additional paid-in capital		791,212			760,831
Retained earnings		1,012,395			1,402,261
Accumulated other comprehensive loss		(1,003	)		(1,003	)
Less treasury stock, at cost; 31,000 and 14,000 shares, respectively, at September 30, 2007 and December 31, 2006		(659	)		(659	)
Total Stockholders’ Equity		1,802,404			2,161,882
Total Liabilities and Stockholders’ Equity .	$	3,361,253		$	3,909,875

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M.D.C. HOLDINGS, INC.
Information on Segments
(Dollars in thousands)
(Unaudited)

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2007			2006			2007			2006
REVENUE
Homebuilding West	$	389,309		$	653,932		$	1,277,012		$	2,061,708
Mountain		138,439			168,193			418,300			519,107
East		72,368			137,050			205,523			444,765
Other Homebuilding		60,364			105,553			184,195			374,299
Total Homebuilding		660,480			1,064,728			2,085,030			3,399,879
Financial Services and Other		14,652			23,843			47,836			74,158
Corporate		16,048			60			30,510			675
Inter-company Adjustments		(4,519	)		(7,708	)		(14,883	)		(16,383	)
Consolidated	$	686,661		$	1,080,923		$	2,148,493		$	3,458,329
(LOSS) INCOME BEFORE INCOME TAXES
Homebuilding West	$	(197,917	)	$	53,762		$	(462,547	)	$	274,642
Mountain		(925	)		9,320			3,218			25,183
East		(15,998	)		23,911			(27,168	)		85,691
Other Homebuilding		(43,158	)		(4,660	)		(81,776	)		237
Total Homebuilding		(257,998	)		82,333			(568,273	)		385,753
Financial Services and Other		5,018			12,989			16,776			35,161
Corporate		1,666			(18,901	)		(14,526	)		(69,778	)
Consolidated	$	(251,314	)	$	76,421		$	(566,023	)	$	351,136
ASSET IMPAIRMENTS
West	$	190,490		$	15,243		$	445,122		$	15,243
Mountain		6,930			627			16,709			627
East		16,237			1,357			24,669			1,357
Other Homebuilding		35,293			2,688			64,922			3,548
Total Homebuilding	$	248,950		$	19,915		$	551,422		$	20,775

	September 30,			December 31,
	2007			2006
TOTAL ASSETS
West	$	1,157,760		$	1,869,442
Mountain		535,568			535,554
East		308,070			333,902
Other Homebuilding		168,990			266,326
Total Homebuilding		2,170,388			3,005,224
Financial Services and Other		142,456			284,791
Corporate		1,091,566			657,917
Inter-company		(43,157	)		(38,057	)
Consolidated	$	3,361,253		$	3,909,875

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M.D.C. HOLDINGS, INC.
Selected Financial Data
(Dollars in thousands)
(Unaudited)

	Three Months Ended												Nine Months Ended
	September 30,						Change						September 30,						Change
	2007			2006			Amount			%			2007			2006			Amount			%
SELECTED FINANCIAL DATA
General and Administrative Expenses
Homebuilding Operations	$	52,561		$	69,317		$	(16,756	)		-24	%	$	171,419		$	219,820		$	(48,401	)		-22	%
Financial Services and Other Operations	$	9,635		$	11,516		$	(1,881	)		-16	%	$	31,060		$	39,041		$	(7,981	)		-20	%
Corporate (1)	$	14,381		$	19,034		$	(4,653	)		-24	%	$	45,036		$	70,526		$	(25,490	)		-36	%
SG&A as a % of Home Sales Revenue
Homebuilding Operations		16.1	%		13.0	%		3.1	%					16.1	%		12.5	%		3.6	%
Corporate (1)		2.2	%		1.8	%		0.4	%					2.2	%		2.1	%		0.1	%
Depreciation and Amortization	$	11,777		$	13,028		$	(1,251	)		-10	%	$	33,994		$	41,537		$	(7,543	)		-18	%
Home Gross Margins (2)		14.1	%		22.5	%		-8.4	%					14.7	%		24.3	%		-9.6	%
Cash Provided by (Used in) Operating Activities	$	136,246		$	70,928		$	65,318					$	335,568		$	(41,343	)	$	376,911
Cash Used in Investing Activities	$	(6,307	)	$	(2,893	)	$	(3,414	)				$	(8,362	)	$	(7,224	)	$	(1,138	)
Cash Used in Financing Activities	$	(68,839	)	$	(26,675	)	$	(42,164	)				$	(105,674	)	$	(33,120	)	$	(72,554	)
Ending Unrestricted Cash and Available Borrowing Capacity	$	1,960,336		$	1,356,532		$	603,804			45	%
Corporate and Homebuilding Interest
Interest Capitalized During the Period	$	14,444		$	14,150		$	294			2	%	$	43,320		$	43,993		$	(673	)		-2	%
Interest Included in Home
Cost of Sales for the Period	$	14,428		$	12,574		$	1,854			15	%	$	39,971		$	35,847		$	4,124			12	%
Interest in Home Cost of Sales as a % of Home Sales Revenue		2.2	%		1.2	%		1.0	%					2.0	%		1.1	%		0.9	%
Interest Capitalized in Inventories at End of Period	$	54,004		$	50,145		$	3,859			8	%

(1)	Includes related party expenses.
(2)	Home sales revenue less home cost of sales (excluding commissions, amortization of deferred marketing, project cost write offs and asset impairments) as a percent of home sales revenue. During the three and nine months ended September 30, 2007, we closed homes on lots for which we had previously recorded $36.4 million and $64.4 million, respectively, of asset impairments.

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M.D.C. HOLDINGS, INC.
Selected Financial Data
(Dollars in thousands)
(Unaudited)

	Three Months Ended												Nine Months Ended
	September 30,						Change						September 30,						Change
	2007			2006			Amount			%			2007			2006			Amount			%
HOMEAMERICAN OPERATING ACTIVITIES
Principal Amount of Mortgage Loans Originated	$	286,192		$	541,446		$	(255,254	)		-47	%	$	930,769		$	1,672,096		$	(741,327	)		-44	%
Principal Amount of Mortgage Loans Brokered	$	118,580		$	162,783		$	(44,203	)		-27	%	$	364,813		$	492,464		$	(127,651	)		-26	%
Capture Rate		54	%		60	%		-6	%					55	%		58	%		-3	%
Including Brokered Loans		73	%		78	%		-5	%					74	%		75	%		-1	%
Mortgage Products (% of Loans Originated)
Fixed Rate		86	%		53	%		33	%					78	%		50	%		28	%
Adjustable Rate — Interest Only		11	%		39	%		-28	%					20	%		42	%		-22	%
Adjustable Rate — Other		3	%		8	%		-5	%					2	%		8	%		-6	%
Prime Loans (3)		86	%		54	%		32	%					77	%		61	%		16	%
Alt-A Loans (4)		0	%		41	%		-41	%					14	%		33	%		-19	%
Government Loans (5)		14	%		4	%		10	%					9	%		4	%		5	%
Sub-Prime Loans (6)		0	%		1	%		-1	%					0	%		2	%		-2	%

(3)	Prime loans are defined as loans with Fair, Isaac and Company (“FICO”) scores greater than 620 and that comply in all ways with the documentation standards of the government sponsored enterprise guidelines.
(4)	Alt-A loans are defined as loans that would otherwise qualify as prime loans except that they do not comply in all ways with the government sponsored enterprise guidelines.
(5)	Government loans are loans either insured by the Federal Housing Administration or guaranteed by the Department of Veteran Affairs.
(6)	Sub-prime loans are loans that have FICO scores of less than or equal to 620.

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M.D.C. HOLDINGS, INC.
Homebuilding Operational Data
(Dollars in thousands)
(Unaudited)

	September 30,		December 31,		September 30,
	2007		2006		2006
HOMES COMPLETED OR UNDER CONSTRUCTION
Unsold Homes Under Construction — Final		493		476		468
Unsold Homes Under Construction — Frame		862		573		780
Unsold Homes Under Construction — Foundation		196		400		244
Total Unsold Homes Under Construction		1,551		1,449		1,492
Sold Homes Under Construction		2,791		2,430		4,340
Model Homes		758		757		762
Homes Completed or Under Construction		5,100		4,636		6,594
LOTS OWNED (excluding homes completed or under construction)
Arizona		3,962		6,368		6,958
California		1,867		2,802		3,051
Nevada		1,879		2,747		3,096
West		7,708		11,917		13,105
Colorado		2,904		3,479		3,325
Utah		900		1,185		1,132
Mountain		3,804		4,664		4,457
Maryland		307		528		505
Virginia		417		643		674
East		724		1,171		1,179
Delaware Valley		141		265		283
Florida		849		1,093		1,220
Illinois		201		287		300
Texas		—		13		69
Other Homebuilding		1,191		1,658		1,872
Total		13,427		19,410		20,613
LOTS UNDER OPTION
Arizona		388		744		1,283
California		157		387		1,053
Nevada		4		250		627
West		549		1,381		2,963
Colorado		258		801		1,304
Utah		—		91		272
Mountain		258		892		1,576
Maryland		605		960		1,034
Virginia		1,769		2,381		2,459
East		2,374		3,341		3,493
Delaware Valley		315		683		874
Florida		497		1,800		1,999
Illinois		—		—		47
Texas		—		—		—
Other Homebuilding		812		2,483		2,920
Total		3,993		8,097		10,952
Non-refundable Option Deposits
Cash	$	8,093	$	20,228	$	34,034
Letters of Credit		8,287		14,224		16,069
Total Non-refundable Option Deposits	$	16,380	$	34,452	$	50,103

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M.D.C. HOLDINGS, INC.
Homebuilding Operational Data
(Dollars in thousands)
(Unaudited)

	Three Months Ended										Nine Months Ended
	September 30,				Change						September 30,				Change
	2007		2006		Amount			%			2007		2006		Amount			%
HOMES CLOSED (UNITS)
Arizona		700		716		(16	)		-2	%		1,997		2,337		(340	)		-15	%
California		237		383		(146	)		-38	%		831		1,252		(421	)		-34	%
Nevada		310		696		(386	)		-55	%		1,028		2,109		(1,081	)		-51	%
West		1,247		1,795		(548	)		-31	%		3,856		5,698		(1,842	)		-32	%
Colorado		219		334		(115	)		-34	%		583		1,154		(571	)		-49	%
Utah		162		206		(44	)		-21	%		568		580		(12	)		-2	%
Mountain		381		540		(159	)		-29	%		1,151		1,734		(583	)		-34	%
Maryland		71		104		(33	)		-32	%		181		290		(109	)		-38	%
Virginia		72		150		(78	)		-52	%		216		498		(282	)		-57	%
East		143		254		(111	)		-44	%		397		788		(391	)		-50	%
Delaware Valley		35		50		(15	)		-30	%		116		122		(6	)		-5	%
Florida		115		195		(80	)		-41	%		381		702		(321	)		-46	%
Illinois		41		46		(5	)		-11	%		68		119		(51	)		-43	%
Texas		1		75		(74	)		-99	%		26		366		(340	)		-93	%
Other Homebuilding		192		366		(174	)		-48	%		591		1,309		(718	)		-55	%
Total		1,963		2,955		(992	)		-34	%		5,995		9,529		(3,534	)		-37	%
AVERAGE SELLING PRICES PER HOME CLOSED
Arizona	$	247.9	$	311.8	$	(63.9	)		-20	%	$	254.4	$	303.6	$	(49.2	)		-16	%
California		492.4		520.7		(28.3	)		-5	%		524.7		542.8		(18.1	)		-3	%
Colorado		357.7		301.4		56.3			19	%		345.5		302.2		43.3			14	%
Delaware Valley		417.2		394.3		22.9			6	%		452.7		396.5		56.2			14	%
Florida		253.8		275.6		(21.8	)		-8	%		265.2		290.1		(24.9	)		-9	%
Illinois		396.1		365.6		30.5			8	%		381.7		367.7		14.0			4	%
Maryland		521.4		576.1		(54.7	)		-9	%		521.3		573.8		(52.5	)		-9	%
Nevada		294.2		317.8		(23.6	)		-7	%		301.5		320.6		(19.1	)		-6	%
Texas		110.0		164.0		(54.0	)		-33	%		129.6		167.1		(37.5	)		-22	%
Utah		363.3		321.5		41.8			13	%		359.8		293.0		66.8			23	%
Virginia		484.1		486.2		(2.1	)		0	%		491.4		555.2		(63.8	)		-11	%
Company Average	$	331.7	$	355.6	$	(23.9	)		-7	%	$	342.1	$	352.2	$	(10.2	)		-3	%

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M.D.C. HOLDINGS, INC.
Homebuilding Operational Data
(Dollars in thousands)
(Unaudited)

	Three Months Ended												Nine Months Ended
	September 30,						Change						September 30,						Change
	2007			2006			Amount			%			2007			2006			Amount			%
ORDERS FOR HOMES, NET (UNITS)
Arizona		385			680			(295	)		-43	%		1,750			2,278			(528	)		-23	%
California		152			273			(121	)		-44	%		849			1,209			(360	)		-30	%
Nevada		239			436			(197	)		-45	%		984			1,734			(750	)		-43	%
West		776			1,389			(613	)		-44	%		3,583			5,221			(1,638	)		-31	%
Colorado		153			196			(43	)		-22	%		677			938			(261	)		-28	%
Utah		41			251			(210	)		-84	%		390			916			(526	)		-57	%
Mountain		194			447			(253	)		-57	%		1,067			1,854			(787	)		-42	%
Maryland		36			70			(34	)		-49	%		227			320			(93	)		-29	%
Virginia		81			76			5			7	%		275			383			(108	)		-28	%
East		117			146			(29	)		-20	%		502			703			(201	)		-29	%
Delaware Valley		23			36			(13	)		-36	%		104			110			(6	)		-5	%
Florida		81			81			—			0	%		377			530			(153	)		-29	%
Illinois		37			20			17			85	%		109			82			27			33	%
Texas		—			1			(1	)		-100	%		14			158			(144	)		-91	%
Other Homebuilding		141			138			3			2	%		604			880			(276	)		-31	%
Total		1,228			2,120			(892	)		-42	%		5,756			8,658			(2,902	)		-34	%
Estimated Value of Orders for Homes, net	$	365,000		$	678,000		$	(313,000	)		-46	%	$	1,920,000		$	2,952,000		$	(1,032,000	)		-35	%
Estimated Average Selling Price of Orders for Homes, net	$	297.2		$	319.8		$	(22.6	)		-7	%	$	333.6		$	341.0		$	(7.4	)		-2	%
Approximate Order Cancellation Rate (7)		57	%		49	%		8	%					44	%		40	%		4	%

⁽⁷⁾ Gross number of cancellations received divided by gross number of orders received.

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M.D.C. HOLDINGS, INC.
Homebuilding Operational Data
(Dollars in thousands)
(Unaudited)

	September 30,		December 31,		September 30,
	2007		2006		2006
BACKLOG (UNITS)
Arizona		1,257		1,504		2,040
California		445		427		722
Nevada		271		315		648
West		1,973		2,246		3,410
Colorado		347		253		361
Utah		287		465		674
Mountain		634		718		1,035
Maryland		233		187		281
Virginia		195		136		266
East		428		323		547
Delaware Valley		107		119		169
Florida		193		197		427
Illinois		64		23		43
Texas		—		12		30
Other Homebuilding		364		351		669
Total		3,399		3,638		5,661
Backlog Estimated Sales Value	$	1,210,000	$	1,300,000	$	2,100,000
Estimated Average Selling Price of Homes in Backlog	$	356.0	$	357.3	$	371.0
ACTIVE SUBDIVISIONS
Arizona		67		67		65
California		41		45		46
Nevada		41		41		37
West		149		153		148
Colorado		52		47		45
Utah		25		22		21
Mountain		77		69		66
Maryland		16		19		17
Virginia		21		19		19
East		37		38		36
Delaware Valley		4		8		7
Florida		23		30		29
Illinois		7		6		7
Texas		—		2		2
Other Homebuilding		34		46		45
Total		297		306		295
Average for Quarter Ended		303		299		296

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M.D.C. HOLDINGS, INC.
Reconciliation of Non-GAAP Financial Measures
(Dollars in thousands)
(Unaudited)

	September 30,			December 31,			September 30,
	2007			2006			2006
CORPORATE AND HOMEBUILDING DEBT-TO-CAPITAL, NET OF CASH
Total Debt	$	1,038,943		$	1,127,149		$	1,148,952
Less Mortgage Line of Credit		(41,957	)		(130,467	)		(152,369	)
Total Corporate and Homebuilding Debt		996,986			996,682			996,583
Less Cash (Including Restricted Cash)		(731,112	)		(510,588	)		(137,926	)
Total Corporate and Homebuilding Debt, Net of Cash		265,874			486,094			858,657
Stockholders’ Equity		1,802,404			2,161,882			2,167,132
Total Corporate and Homebuilding Capital, Net of Cash	$	2,068,278		$	2,647,976		$	3,025,789
Ratio of Corporate and Homebuilding Debt to Capital, Net of Cash		0.13			0.18			0.28

NOTE: From time to time, MDC discloses selected non-GAAP financial measures. While non-GAAP financial measures are not a substitute for the comparable GAAP measures, we believe that certain non-GAAP information is useful to investors and management in comparing current results to historical periods and to competitor results, and that it provides additional information on the performance of MDC’s businesses. The above is a presentation of and reconciliation of a selected non-GAAP measure with the most directly comparable GAAP financial measure.

“Ratio of corporate and homebuilding debt to capital, net of cash” is a non-GAAP financial measure. MDC’s management and investors use this ratio to help assess the risk associated with debt in the Company’s capital structure. It excludes debt incurred under MDC’s mortgage line of credit from both the numerator and denominator, as this debt is directly collateralized by mortgage loans held in inventory, which are typically liquidated within 45 days of origination, thereby reducing the risk associated with this type of debt. The ratio’s numerator and denominator are also reduced by MDC’s cash position, as this balance could be used to reduce MDC’s exposure to debt outstanding.

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