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Consumer Loans Receivable | 3 Months Ended
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Jul. 01, 2017
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 accordance with 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):
| July 1, 2017 |  | April 1, 2017
Loans held for investment (acquired on Palm Harbor Acquisition Date) | $ | 58,373 |  |  | $ | 60,513 |
Loans held for investment (originated after Palm Harbor Acquisition Date) | 12,927 |  |  | 11,108 |
Loans held for sale | 19,283 |  |  | 18,570 |
Construction advances | 9,187 |  |  | 6,957 |
Consumer loans receivable | 99,770 |  |  | 97,148 |
Deferred financing fees and other, net | (1,154 | ) |  | (1,095 | )
Allowance for loan losses | (237 | ) |  | (252 | )
Consumer loans receivable, net | $ | 98,379 |  |  | $ | 95,801 |
The allowance for loan losses is developed at a loan level and allocated to specific individual loans or to impaired loans. A range of probable losses is calculated after giving consideration to, among other things, the loan characteristics, and historical loss experience. The Company then makes a determination of the best estimate within the range of loan losses. The allowance for loan losses reflects the Company’s judgment of the probable loss exposure on its loans held for investment portfolio. 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 includes interest that cannot be accreted into interest income (the non-accretable difference). The cash flow expected to be collected in excess of the carrying value of the acquired loans includes interest that is accreted into interest income over the remaining life of the loans (referred to as accretable yield). Interest income on consumer loans receivable is recognized as net revenue.
| July 1, 2017 |  | April 1, 2017
| (in thousands)
Consumer loans receivable held for investment – contractual amount | $ | 136,927 |  |  | $ | 142,391 |
Purchase discount |  |  |
Accretable | (54,912 | ) |  | (56,686 | )
Non-accretable | (23,437 | ) |  | (25,032 | )
Less consumer loans receivable reclassified as other assets | (205 | ) |  | (160 | )
Total acquired consumer loans receivable held for investment, net | $ | 58,373 |  |  | $ | 60,513 |
Over the life of the acquired loans, the Company continues to estimate cash flows expected to be collected by CountryPlace. As of the balance sheet date, the Company evaluates whether the present value of expected cash flows, determined using the effective interest rate, has decreased from the value at acquisition and, if so, recognizes an allowance for loan loss. 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 weighted averages of assumptions used in the calculation of expected cash flows to be collected are as follows:
| July 1, 2017 |  | April 1, 2017
Prepayment rate | 13.9 | % |  | 13.8 | %
Default rate | 1.0 | % |  | 1.1 | %
Assuming there was a 1% unfavorable variation from the expected level, for each key assumption, the expected cash flows for the life of the portfolio, as of July 1, 2017, would decrease by approximately $1.8 million and $4.6 million for the expected prepayment rate and expected default rate, respectively. The changes in accretable yield on acquired consumer loans receivable held for investment were as follows (in thousands):
| Three Months Ended
| July 1, 2017 |  | July 2, 2016
Balance at the beginning of the period | $ | 56,686 |  |  | $ | 69,053 |
Accretion | (2,210 | ) |  | (2,515 | )
Reclassifications (to) from non-accretable discount | 436 |  |  | (254 | )
Balance at the end of the period | $ | 54,912 |  |  | $ | 66,284 |
The consumer loans held for investment have the following characteristics:
| July 1, 2017 |  | April 1, 2017
Weighted average contractual interest rate | 8.82 | % |  | 8.87 | %
Weighted average effective interest rate | 9.65 | % |  | 9.35 | %
Weighted average months to maturity | 165 |  |  | 165 |
The Company's consumer loans receivable balance 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 personal property loans), 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. Unsecuritized consumer loans held for investment include chattel personal property loans originated under the Company's chattel lending programs. 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 (such as 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 for each class by portfolio segment and credit quality indicator as of the time of origination (in thousands):
| July 1, 2017
| Consumer Loans Held for Investment |  |  |  |  |  |
| Securitized 2005 |  | Securitized 2007 |  | Unsecuritized |  | Construction Advances |  | Consumer Loans Held For Sale |  | Total
Asset Class |  |  |  |  |  |  |  |  |  |  |
Credit Quality Indicator (FICO® score) |  |  |  |  |  |  |  |
Chattel loans |  |  |  |  |  |  |  |  |  |  |
0-619 | $ | 621 |  |  | $ | 392 |  |  | $ | 382 |  |  | $ | — |  |  | $ | — |  |  | $ | 1,395 |
620-719 | 11,230 |  |  | 7,917 |  |  | 6,399 |  |  | — |  |  | 388 |  |  | 25,934 |
720+ | 12,230 |  |  | 7,386 |  |  | 5,931 |  |  | — |  |  | 4,143 |  |  | 29,690 |
Other | 51 |  |  | — |  |  | 429 |  |  | — |  |  | — |  |  | 480 |
Subtotal | 24,132 |  |  | 15,695 |  |  | 13,141 |  |  | — |  |  | 4,531 |  |  | 57,499 |
Conforming mortgages |  |  |  |  |  |  |  |  |  |
0-619 | — |  |  | — |  |  | 160 |  |  | — |  |  | 93 |  |  | 253 |
620-719 | — |  |  | — |  |  | 1,715 |  |  | 5,662 |  |  | 9,875 |  |  | 17,252 |
720+ | — |  |  | — |  |  | 246 |  |  | 3,525 |  |  | 4,784 |  |  | 8,555 |
Subtotal | — |  |  | — |  |  | 2,121 |  |  | 9,187 |  |  | 14,752 |  |  | 26,060 |
Non-conforming mortgages |  |  |  |  |  |  |  |  |  |
0-619 | 85 |  |  | 429 |  |  | 1,305 |  |  | — |  |  | — |  |  | 1,819 |
620-719 | 1,225 |  |  | 4,775 |  |  | 3,292 |  |  | — |  |  | — |  |  | 9,292 |
720+ | 1,510 |  |  | 2,878 |  |  | 408 |  |  | — |  |  | — |  |  | 4,796 |
Other | — |  |  | — |  |  | 297 |  |  | — |  |  | — |  |  | 297 |
Subtotal | 2,820 |  |  | 8,082 |  |  | 5,302 |  |  | — |  |  | — |  |  | 16,204 |
Other loans |  |  |  |  |  |  |  |  |  |
Subtotal | — |  |  | — |  |  | 7 |  |  | — |  |  | — |  |  | 7 |
| $ | 26,952 |  |  | $ | 23,777 |  |  | $ | 20,571 |  |  | $ | 9,187 |  |  | $ | 19,283 |  |  | $ | 99,770 |
| April 1, 2017
| Consumer Loans Held for Investment |  |  |  |  |  |
| Securitized 2005 |  | Securitized 2007 |  | Unsecuritized |  | Construction Advances |  | Consumer Loans Held For Sale |  | Total
Asset Class |  |  |  |  |  |  |  |  |  |  |
Credit Quality Indicator (FICO® score) |  |  |  |  |  |  |  |
Chattel loans |  |  |  |  |  |  |  |  |  |  |
0-619 | $ | 705 |  |  | $ | 411 |  |  | $ | 393 |  |  | $ | — |  |  | $ | — |  |  | $ | 1,509 |
620-719 | 11,681 |  |  | 8,072 |  |  | 5,406 |  |  | — |  |  | 697 |  |  | 25,856 |
720+ | 12,748 |  |  | 7,800 |  |  | 5,081 |  |  | — |  |  | 3,097 |  |  | 28,726 |
Other | 51 |  |  | — |  |  | 433 |  |  | — |  |  | — |  |  | 484 |
Subtotal | 25,185 |  |  | 16,283 |  |  | 11,313 |  |  | — |  |  | 3,794 |  |  | 56,575 |
Conforming mortgages |  |  |  |  |  |  |  |  |  |
0-619 | — |  |  | — |  |  | 161 |  |  | 261 |  |  | 99 |  |  | 521 |
620-719 | — |  |  | — |  |  | 1,792 |  |  | 4,231 |  |  | 10,553 |  |  | 16,576 |
720+ | — |  |  | — |  |  | 247 |  |  | 2,465 |  |  | 4,124 |  |  | 6,836 |
Subtotal | — |  |  | — |  |  | 2,200 |  |  | 6,957 |  |  | 14,776 |  |  | 23,933 |
Non-conforming mortgages |  |  |  |  |  |  |  |  |  |
0-619 | 86 |  |  | 435 |  |  | 1,327 |  |  | — |  |  | — |  |  | 1,848 |
620-719 | 1,242 |  |  | 4,947 |  |  | 3,372 |  |  | — |  |  | — |  |  | 9,561 |
720+ | 1,527 |  |  | 2,909 |  |  | 484 |  |  | — |  |  | — |  |  | 4,920 |
Other | — |  |  | — |  |  | 299 |  |  | — |  |  | — |  |  | 299 |
Subtotal | 2,855 |  |  | 8,291 |  |  | 5,482 |  |  | — |  |  | — |  |  | 16,628 |
Other loans |  |  |  |  |  |  |  |  |  |  |
Subtotal | — |  |  | — |  |  | 12 |  |  | — |  |  | — |  |  | 12 |
| $ | 28,040 |  |  | $ | 24,574 |  |  | $ | 19,007 |  |  | $ | 6,957 |  |  | $ | 18,570 |  |  | $ | 97,148 |
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. Forty-seven percent of the outstanding principal balance of consumer loans receivable portfolio is concentrated in Texas and 11% is concentrated in Florida. Other than Texas and Florida, no other state had concentrations in excess of 10% of the principal balance of the consumer loans receivable as of July 1, 2017. Collateral for repossessed loans is acquired through foreclosure or similar proceedings and is recorded at the estimated fair value of the home, less the costs to sell. At repossession, the fair value of the collateral is computed based on the historical recovery rates of previously charged-off loans; the loan is charged off and the loss is charged to the allowance for loan losses. On a monthly basis, the fair value of the collateral is adjusted to the lower of the amount recorded at repossession or the estimated sales price less estimated costs to sell, based on current information. Repossessed homes totaled approximately $1.8 million and $1.2 million as of July 1, 2017 and April 1, 2017, respectively, and are included in prepaid and other assets in the consolidated balance sheet. Foreclosure or similar proceedings in progress totaled approximately $934,000 and $694,000 as of July 1, 2017 and April 1, 2017, respectively.
Revenue Recognition, Interest [Policy Text Block] | 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 includes interest that cannot be accreted into interest income (the non-accretable difference). The cash flow expected to be collected in excess of the carrying value of the acquired loans includes interest that is accreted into interest income over the remaining life of the loans (referred to as accretable yield). Interest income on consumer loans receivable is recognized as net revenue.

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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 -URI http://asc.fasb.org/topic&trid=2196771 + Details
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- Definition Disclosure of accounting policy for recognition of interest revenue. Disclosure may include the method of recognizing interest income on loan and trade receivables, the method of amortizing premiums or accreting discounts, and a statement about the policy for the treatment of related fees and costs, including the method of amortizing net deferred fees and costs. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 605 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph SAB Topic 13.B.Q1 -URI http://asc.fasb.org/extlink&oid=65893310&loc=d3e214044-122780 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=84158767&loc=d3e18780-107790 + Details
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