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Consumer Loans Receivable | 9 Months Ended
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Dec. 28, 2013
Receivables [Abstract] |
Consumer Loans Receivable | Consumer Loans Receivable The Company acquired consumer loans receivable during the first quarter of fiscal 2012 as part of the Palm Harbor transaction. Acquired consumer loans receivable held for investment were acquired at fair value and subsequently are accounted for in a manner similar to Accounting Standards Codification (“ASC”) 310-30, Loans and Debt Securities Acquired with Deteriorated Credit Quality (“ASC 310-30”). Consumer loans receivable held for sale are carried at the lower of cost or market and construction advances are carried at the amount advanced less a valuation allowance. The following table summarizes consumer loans receivable (in thousands):
| December 28, 2013 |  | March 30, 2013
Loans held for investment (acquired as part of the Palm Harbor transaction) | $ | 90,350 |  |  | $ | 99,854 |
Loans held for investment (originated after the Palm Harbor transaction) | 1,687 |  |  | 606 |
Loans held for sale | 7,391 |  |  | 7,410 |
Construction advances, net | 2,759 |  |  | 3,597 |
Consumer loans receivable | 102,187 |  |  | 111,467 |
Deferred financing fees and other, net | (198 | ) |  | (477 | )
Consumer loans receivable, net | $ | 101,989 |  |  | $ | 110,990 |
As of the date of the Palm Harbor acquisition, management evaluated consumer loans receivable held for investment by CountryPlace to determine whether there was evidence of deterioration of credit quality and if it was probable that CountryPlace would be unable to collect all amounts due according to the loans’ contractual terms. The Company also considered expected prepayments and estimated the amount and timing of undiscounted expected principal, interest and other cash flows. The Company determined the excess of the loan pool’s scheduled contractual principal and contractual interest payments over all cash flows expected as of the date of the Palm Harbor transaction as an amount that cannot be accreted into interest income (the non-accretable difference). The cash flows expected to be collected in excess of the carrying value of the acquired loans are accreted into interest income over the remaining life of the loans (referred to as accretable yield). The portion of the cash flows expected Interest income on consumer loans receivable is recognized as net revenue.
| December 28, 2013 |  | March 30, 2013
| (In thousands)
Consumer loans receivable held for investment – contractual amount | $ | 231,912 |  |  | $ | 263,038 |
Purchase discount |  |  |
Accretable yield | (80,803 | ) |  | (91,291 | )
Non-accretable difference | (60,206 | ) |  | (71,451 | )
Less consumer loans receivable reclassified as other assets | (553 | ) |  | (442 | )
Total acquired consumer loans receivable held for investment, net | $ | 90,350 |  |  | $ | 99,854 |
Over the life of the acquired loans, the Company continues to estimate cash flows expected to be collected by CountryPlace. At the balance sheet date, the Company evaluates whether the present value of expected cash flows, determined using the effective interest rate, has decreased and, if so, recognizes an allowance for loan loss subsequent to the date of the Palm Harbor transaction. The present value of any subsequent increase in the loan pool’s actual cash flows expected to be collected is used first to reverse any existing allowance for loan loss. Any remaining increase in cash flows expected to be collected adjusts the amount of accretable yield recognized on a prospective basis over the loan pool’s remaining life. The changes in accretable yield on acquired consumer loans receivable held for investment were as follows (in thousands):
| Three Months Ended |  | Nine Months Ended
| December 28, 2013 |  | December 29, 2012 |  | December 28, 2013 |  | December 29, 2012
Balance at the beginning of the period | $ | 83,817 |  |  | $ | 102,314 |  |  | $ | 91,291 |  |  | $ | 106,949 |
Accretion | (2,980 | ) |  | (3,307 | ) |  | (9,143 | ) |  | (10,402 | )
Net transfers between accretable yield and non-accretable difference | (34 | ) |  | 374 |  |  | (1,345 | ) |  | 2,834 |
Balance at the end of the period | $ | 80,803 |  |  | $ | 99,381 |  |  | $ | 80,803 |  |  | $ | 99,381 |
CountryPlace’s consumer loans receivable consists of fixed-rate, fixed-term and fully-amortizing single-family home loans. These loans are either secured by a manufactured home, excluding the land upon which the home is located (chattel property loans and retail installment sale contracts), or by a combination of the home and the land upon which the home is located (real property mortgage loans). The real property mortgage loans are primarily for manufactured homes. Combined land and home loans are further disaggregated by the type of loan documentation: those conforming to the requirements of Government-Sponsored Enterprises (“GSEs”), and those that are non-conforming. In most instances, CountryPlace’s loans are secured by a first-lien position and are provided for the consumer purchase of a home. In rare instances, CountryPlace may provide other types of loans in second-lien or unsecured positions. Accordingly, CountryPlace classifies its loans receivable as follows: chattel loans, conforming mortgages, non-conforming mortgages, and other loans. In measuring credit quality within each segment and class, CountryPlace uses commercially available credit scores (“FICO”). At the time of each loan’s origination, CountryPlace obtains credit scores from each of the three primary credit bureaus, if available. To evaluate credit quality of individual loans, CountryPlace uses the mid-point of the available credit scores or, if only two scores are available, the Company uses the lower of the two. CountryPlace does not update credit bureau scores after the time of origination. The following table disaggregates CountryPlace’s gross consumer loans receivable as of December 28, 2013, for each class by portfolio segment and credit quality indicator as of the time of origination (in thousands):
| Consumer Loans Held for Investment |  |  |  | Consumer |  |
| Securitized 2005 |  | Securitized 2007 |  | Unsecuritized |  | Construction Advances |  | Loans Held For Sale |  | Total
Asset Class |  |  |  |  |  |  |  |  |  |  |
Credit Quality Indicator |  |  |  |  |  |  |  |  |  |
Chattel loans |  |  |  |  |  |  |  |  |  |  |
0-619 | $ | 1,142 |  |  | $ | 668 |  |  | $ | 821 |  |  | $ | — |  |  | $ | — |  |  | $ | 2,631 |
620-719 | 17,449 |  |  | 11,617 |  |  | 987 |  |  | — |  |  | — |  |  | 30,053 |
720+ | 19,594 |  |  | 13,321 |  |  | 593 |  |  | — |  |  | — |  |  | 33,508 |
Subtotal | 38,185 |  |  | 25,606 |  |  | 2,401 |  |  | — |  |  | — |  |  | 66,192 |
Conforming mortgages |  |  |  |  |  |  |  |  |  |  |
0-619 | — |  |  | — |  |  | 274 |  |  |  |  |  | 128 |  |  | 402 |
620-719 | — |  |  | — |  |  | 2,308 |  |  | 1,552 |  |  | 4,604 |  |  | 8,464 |
720+ | — |  |  | — |  |  | 287 |  |  | 1,207 |  |  | 2,659 |  |  | 4,153 |
Subtotal | — |  |  | — |  |  | 2,869 |  |  | 2,759 |  |  | 7,391 |  |  | 13,019 |
Non-conforming mortgages |  |  |  |  |  |  |  |  |  |  |
0-619 | 94 |  |  | 817 |  |  | 2,051 |  |  | — |  |  | — |  |  | 2,962 |
620-719 | 1,646 |  |  | 6,399 |  |  | 4,082 |  |  | — |  |  | — |  |  | 12,127 |
720+ | 1,945 |  |  | 4,496 |  |  | 1,429 |  |  | — |  |  | — |  |  | 7,870 |
Subtotal | 3,685 |  |  | 11,712 |  |  | 7,562 |  |  | — |  |  | — |  |  | 22,959 |
Other loans |  |  |  |  |  |  |  |  |  |  |
Subtotal | — |  |  | — |  |  | 17 |  |  | — |  |  | — |  |  | 17 |
| $ | 41,870 |  |  | $ | 37,318 |  |  | $ | 12,849 |  |  | $ | 2,759 |  |  | $ | 7,391 |  |  | $ | 102,187 |
Loan contracts secured by collateral that is geographically concentrated could experience higher rates of delinquencies, default and foreclosure losses than loan contracts secured by collateral that is more geographically dispersed. Consumer loans receivable are located in the key states shown below with the corresponding percentage of loans aged 61 days or more:
|  | December 28, 2013 |  | March 30, 2013
|  |  |  | Aging 61 days or more |  |  |  | Aging 61 days or more
|  | Portfolio |  | Percent of state’s |  | Percent of total |  | Portfolio |  | Percent of state’s |  | Percent of total
State |  | concentration |  | loan balance |  | loan balance |  | concentration |  | loan balance |  | loan balance
Texas |  | 41.4% |  | 1.29% |  | 0.53% |  | 41.9% |  | 1.77% |  | 0.74%
Florida |  | 7.9% |  | 1.62% |  | 0.13% |  | 6.7% |  | 2.26% |  | 0.15%
New Mexico |  | 6.9% |  | 1.05% |  | 0.07% |  | 6.6% |  | 2.44% |  | 0.16%
Arizona |  | 5.6% |  | 6.31% |  | 0.35% |  | 6.2% |  | 3.05% |  | 0.19%
All others |  | 38.2% |  | 3.17% |  | 1.21% |  | 38.6% |  | 3.08% |  | 1.19%
|  | 100.0% |  |  |  | 2.29% |  | 100.0% |  |  |  | 2.43%
The states of Florida and Arizona have experienced volatility in the housing market from economic circumstances. The risks created by these concentrations have been considered by management in the determination of the accretable yield and the adequacy of any allowance for loan losses. Other than Texas, no other state had concentrations in excess of 10% of the principal balance of the consumer loans receivable as of December 28, 2013 or March 30, 2013.

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- Definition The entire disclosure for financing receivables. Examples of financing receivables include, but are not limited to, loans, trade accounts receivables, notes receivable, credit cards, and receivables relating to a lessor's right(s) to payment(s) from a lease other than an operating lease that is recognized as assets. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 10 -URI http://asc.fasb.org/subtopic&trid=2196772 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 10 -Section 55 -Paragraph 14 -URI http://asc.fasb.org/extlink&oid=32702940&loc=SL6953791-111525 + Details
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