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Consumer Loans Receivable (Tables)
 12 Months Ended
Mar. 28, 2020
Receivables [Abstract]  
Loans and Leases Receivable, Nonperforming Loan and Lease, Policy
Consumer Loans Receivable. Consumer loans receivable consists primarily of manufactured housing loans originated by CountryPlace (held for investment or held for sale) and construction advances on mortgages. The fair value of consumer loans receivable held on the Acquisition Date was calculated as of that date, as determined by the present value of expected future cash flows, with no allowance for loan loss recorded.
Loans held for investment consist of loan contracts collateralized by the borrowers' homes and, in some instances, related land. Construction loans in progress are stated at the aggregate amount of cumulative funded advances. Loans held for sale are loans that, at the time of origination, are originated with the intent to resell to investors with which the Company has pre-existing purchase agreements, such as Fannie Mae and Freddie Mac, or to sell as part of a Ginnie Mae insured pool of loans and consist of loan contracts collateralized by single-family residential mortgages. Loans held for sale are stated at the lower of cost or market on an aggregate basis.
Combined land and home mortgages 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, the Company's mortgages are secured by a first-lien position and are provided for the consumer purchase of a home. Consumer loans held for investment include home-only personal property loans originated under the Company's home-only lending programs. Accordingly, the Company classifies its loans receivable as follows: conforming mortgages, non-conforming mortgages, home-only loans and other loans.
In measuring credit quality within each segment and class, the Company uses commercially available credit scores (such as FICO®). At the time of each loan's origination, the Company obtains credit scores from each of the three primary credit bureaus, if available. To evaluate credit quality of individual loans, the Company uses the mid-point of the available credit scores or, if only two scores are available, the Company uses the lower of the two. The Company does not update credit bureau scores after the time of origination.
Consumer Loans Receivable
The following table summarizes consumer loans receivable (in thousands):
 
March 28,
2020
 
March 30,
2019
Loans held for investment (at Acquisition Date, defined below)
$
37,779

 
$
44,375

Loans held for investment (originated after Acquisition Date)
20,140

 
20,580

Loans held for sale
14,671

 
11,288

Construction advances
13,400

 
12,883

Consumer loans receivable
85,990

 
89,126

Deferred financing fees and other, net
(1,919
)
 
(1,632
)
Allowance for loan losses
(1,767
)
 
(709
)
 
$
82,304

 
$
86,785
Revenue Recognition, Interest he Company acquired consumer loans receivable as part of its acquisition of Palm Harbor Homes, Inc. ("Palm Harbor") in April 2011 ("Acquisition Date"). As of the Acquisition Date, the Company determined the excess of the loan pool's scheduled contractual principal and interest payments over all cash flows expected as an amount that consists of 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 consists of interest that is accreted into interest income over the remaining life of the loans (accretable yield). Interest income on consumer loans receivable is recognized as Net revenue
Acquired Consumer Loans Receivable Held for Investment
 
March 28,
2020
 
March 30,
2019
 
(in thousands)
Loans held for investment (at Acquisition Date) – contractual amount
$
83,548

 
$
100,595

Purchase discount:
 
 
 
Accretable
(29,094
)
 
(36,672
)
Non-accretable
(16,669
)
 
(19,502
)
Less loans reclassified as other assets
(6
)
 
(46
)
Total loans held for investment (at Acquisition Date), net
$
37,779

 
$
44,375
Weighted average assumptions cash flows
Over the life of the consumer loans held for investment (at Acquisition Date), the Company estimates cash flows expected to be collected to determine if an allowance for loan loss subsequent to the Acquisition Date is required (see further discussion in Note 1). The weighted averages of assumptions used in the calculation of expected cash flows to be collected are as follows:
 
March 28,
2020
 
March 30,
2019
Prepayment rate
16.4
%
 
17.1
%
Default rate
1.7
%
 
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 March 28, 2020, would decrease by approximately $699,000 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):
 
Year Ended
 
March 28,
2020
 
March 30,
2019
Balance at the beginning of the period
$
36,672

 
$
44,481

Additions
—

 
—

Accretion
(6,600
)
 
(7,588
)
Reclassifications from non-accretable discount
(978
)
 
(221
)
Balance at the end of the period
$
29,094

 
$
36,672
Consumer Loans Held for Investment Characteristics
The consumer loans held for investment have the following characteristics:
 
March 28,
2020
 
March 30,
2019
Weighted average contractual interest rate
8.42
%
 
8.49
%
Weighted average effective interest rate
9.27
%
 
9.11
%
Weighted average months to maturity
164

 
163
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score 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):
 
March 28, 2020
 
Consumer Loans Held for Investment
 
 
 
 
 
 
 
At Acquisition Date
 
Originated after Acquisition Date
 
Construction
Advances
 
Consumer Loans Held
For Sale
 
Total
Asset Class
 
 
 
 
 
 
 
 
 
Credit Quality Indicator (FICO® score)
 
 
 
 
 
 
Home-only loans
0-619
$
684

 
$
112

 
$
—

 
$
—

 
$
796

620-719
12,664

 
10,449

 
—

 
38

 
23,151

720+
12,344

 
5,993

 
—

 
254

 
18,591

Other
166

 
203

 
—

 
—

 
369

Subtotal
25,858

 
16,757

 
—

 
292

 
42,907

Conforming mortgages
0-619
82

 
—

 
35

 
55

 
172

620-719
408

 
1,769

 
9,130

 
9,151

 
20,458

720+
5

 
1,590

 
4,235

 
5,173

 
11,003

Subtotal
495

 
3,359

 
13,400

 
14,379

 
31,633

Non-conforming mortgages
0-619
1,160

 
—

 
—

 
—

 
1,160

620-719
6,828

 
—

 
—

 
—

 
6,828

720+
3,252

 
—

 
—

 
—

 
3,252

Other
178

 
—

 
—

 
—

 
178

Subtotal
11,418

 
—

 
—

 
—

 
11,418

Other Loans
8

 
24

 
—

 
—

 
32

 
$
37,779

 
$
20,140

 
$
13,400

 
$
14,671

 
$
85,990



 
March 30, 2019
 
Consumer Loans Held for Investment
 
 
 
 
 
 
At Acquisition Date
 
Originated after Acquisition Date
 
Construction
Advances
 
Consumer Loans Held
For Sale
 
Total
Asset Class
 
 
 
 
 
 
 
 
 
Credit Quality Indicator (FICO® score)
 
 
 
 
 
 
Home-only loans
0-619
$
796

 
$
117

 
$
—

 
$
—

 
$
913

620-719
14,984

 
9,725

 
—

 
—

 
24,709

720+
14,834

 
8,110

 
—

 
617

 
23,561

Other
176

 
258

 
—

 
—

 
434

Subtotal
30,790

 
18,210

 
—

 
617

 
49,617

Conforming mortgages
0-619
83

 
—

 
—

 
460

 
543

620-719
417

 
1,785

 
8,061

 
6,885

 
17,148

720+
98

 
585

 
4,822

 
3,326

 
8,831

Subtotal
598

 
2,370

 
12,883

 
10,671

 
26,522

Non-conforming mortgages
0-619
1,413

 
—

 
—

 
—

 
1,413

620-719
7,689

 
—

 
—

 
—

 
7,689

720+
3,661

 
—

 
—

 
—

 
3,661

Other
215

 
—

 
—

 
—

 
215

Subtotal
12,978

 
—

 
—

 
—

 
12,978

Other loans
9

 
—

 
—

 
—

 
9

 
$
44,375

 
$
20,580

 
$
12,883

 
$
11,288

 
$
89,126
Geographic Concentration of Consumer Loans Receivable Loan contracts secured by geographically concentrated collateral could experience higher rates of delinquencies, default and foreclosure losses than loan contracts secured by collateral that is more geographically dispersed. As of March 28, 2020, 36% of the outstanding principal balance of consumer loans receivable portfolio was concentrated in Texas and 16% was concentrated in Florida. As of March 30, 2019, 44% of the outstanding principal balance of the consumer loans receivable portfolio was concentrated in Texas and 12% was concentrated in Florida. Other than Texas and Florida, no state had concentrations in excess of 10% of the principal balance of the consumer loans receivable as of March 28, 2020