906163--2/26/2010--NVR_INC

related topics
{gas, price, oil}
{condition, economic, financial}
{debt, indebtedness, cash}
{loan, real, estate}
{financial, litigation, operation}
{regulation, change, law}
{tax, income, asset}
{cost, regulation, environmental}
{cost, operation, labor}
{capital, credit, financial}
{product, liability, claim}
The homebuilding industry is experiencing a significant downturn. The continuation of this downturn could adversely affect our business and our results of operations. If the market value of our inventory or controlled lot position declines, our profit could decrease and we may incur losses. If the tax credit available to first time homebuyers expires on July 1, 2010 and is not renewed, it may negatively impact our future sales. Because almost all of our customers require mortgage financing, the availability of suitable mortgage financing could impair the affordability of our homes, lower demand for our products, and limit our ability to fully deliver our backlog. If our ability to sell mortgages to investors is impaired, we may be required to fund these commitments ourselves, or may not be able to originate loans at all. Interest rate movements, inflation and other economic factors can negatively impact our business. Our inability to secure and control an adequate inventory of lots could adversely impact our operations. Volatility in the credit and capital markets may impact our ability to access necessary financing. Our current indebtedness may impact our future operations. Government regulations and environmental matters could negatively affect our operations. We face competition in our housing and mortgage banking operations. A shortage of building materials or labor, or increases in materials or labor costs may adversely impact our operations. Product liability litigation and warranty claims may adversely impact our operations. We are subject to litigation proceedings that could harm our business if an unfavorable ruling were to occur. Changes in tax laws or the interpretation of tax laws may negatively affect our operating results. Certain of our net deferred tax assets could be substantially limited if we experience an ownership change as defined in the Internal Revenue Code.

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