Ryland Group Inc. announced that it has named Chief Operating Officer Larry Nicholson as its new president, effective Tuesday.

Nicholson has served as COO of the Calabasas homebuilder and mortgage lender since 2007 and will continue in that role and add the responsibilities of president. R. Chad Dreier, Ryland’s chairman and chief executive officer, who previously held the title of president, will continue heading the company.

Nicholson, who joined the company in 1996 as a regional vice president, has been managing Ryland’s homebuilding regions and divisions, including land acquisitions, marketing, purchasing and safety operations. He now will work with Dreier in determining long-term strategy, capital allocations, and other leadership and organizational decisions, the company said.

“In just over a year as COO, Larry has made an enormous impact on Ryland’s operational efficiencies and in fostering a nimble response to the housing downturn,” said Dreier in a statement. “This promotion acknowledges the outstanding work he’s done and his increasing role in leading the company through challenging times and into the future.”

Shares of Ryland shares were down 99 cents, or 4 percent, to $25.53 in morning trading on the New York Stock Exchange.