Consumer Loans Receivable (Tables)

9 Months Ended

Dec. 28, 2019

The following table summarizes consumer loans receivable (in thousands):



	December 28, 2019			March 30, 2019
Loans held for investment (at Acquisition Date, defined below)	$	39,403		$	44,375
Loans held for investment (originated after Acquisition Date)	20,839			20,580
Loans held for sale	19,839			11,288
Construction advances	12,626			12,883
Consumer loans receivable	92,707			89,126
Deferred financing fees and other, net	(2,284		)	(1,926		)
Allowance for loan losses	(431		)	(415		)
	$	89,992		$	86,785

Acquired Consumer Loans Receivable Held for Investment



	December 28, 2019			March 30, 2019
	(in thousands)
Loans held for investment (at Acquisition Date) – contractual amount	$	87,543		$	100,595
Purchase discount:
Accretable	(32,068		)	(36,672		)
Non-accretable	(16,026		)	(19,502		)
Less loans reclassified as other assets	(46		)	(46		)
Total loans held for investment (at Acquisition Date), net	$	39,403		$	44,375

Weighted average assumptions

The weighted averages of assumptions used in the calculation of expected cash flows to be collected were as follows:



	December 28, 2019		March 30, 2019
Prepayment rate	16.6	%	17.1	%
Default rate	1.3	%	1.1	%

Assuming there was a 1% (100 basis point) unfavorable variation from the expected level, for each key assumption, the expected cash flows over the life of the portfolio, as of December 28, 2019, would decrease by approximately $817,000 and $2.3 million for the expected prepayment rate and expected default rate, respectively.

Accretable Yield Movement on Acquired Consumer Loans Receivable

The changes in accretable yield on consumer loans receivable held for investment (at Acquisition Date) were as follows (in thousands):



	Three Months Ended						Nine Months Ended
	December 28, 2019			December 29, 2018			December 28, 2019			December 29, 2018
Balance at the beginning of the period	$	34,108		$	40,937		$	36,672		$	44,481
Accretion	(1,606		)	(1,904		)	(5,086		)	(5,771		)
Reclassifications (from) to non-accretable discount	(434		)	(376		)	482			(53		)
Balance at the end of the period	$	32,068		$	38,657		$	32,068		$	38,657

Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score



	March 30, 2019
	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)
Home-only loans
0-619	$	401	$	245	$	266	$	—	$	—	$	912
620-719	8,448		5,996		10,266		—		—		24,710
720+	9,090		5,419		8,436		—		617		23,562
Other	47		—		390		—		—		437
Subtotal	17,986		11,660		19,358		—		617		49,621
Conforming mortgages
0-619	—		—		83		—		460		543
620-719	—		—		2,202		8,061		6,885		17,148
720+	—		—		684		4,822		3,326		8,832
Subtotal	—		—		2,969		12,883		10,671		26,523
Non-conforming mortgages
0-619	78		344		991		—		—		1,413
620-719	994		4,008		2,687		—		—		7,689
720+	1,238		2,053		369		—		—		3,660
Other	—		—		214		—		—		214
Subtotal	2,310		6,405		4,261		—		—		12,976
Other loans	—		—		6		—		—		6
	$	20,296	$	18,065	$	26,594	$	12,883	$	11,288	$	89,126

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):



	December 28, 2019
	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)
Home-only loans
0-619	$	362	$	219	$	245	$	—	$	—	$	826
620-719	7,319		5,467		10,873		—		—		23,659
720+	7,933		4,660		7,392		—		538		20,523
Other	46		—		339		—		—		385
Subtotal	15,660		10,346		18,849		—		538		45,393
Conforming mortgages
0-619	—		—		83		—		—		83
620-719	—		—		2,402		8,321		12,173		22,896
720+	—		—		1,061		4,305		7,128		12,494
Subtotal	—		—		3,546		12,626		19,301		35,473
Non-conforming mortgages
0-619	76		277		828		—		—		1,181
620-719	764		3,820		2,528		—		—		7,112
720+	1,115		1,992		230		—		—		3,337
Other	—		—		181		—		—		181
Subtotal	1,955		6,089		3,767		—		—		11,811
Other loans	—		—		30		—		—		30
	$	17,615	$	16,435	$	26,192	$	12,626	$	19,839	$	92,707