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Consumer Loans Receivable
 12 Months Ended
Mar. 30, 2024
Receivables [Abstract]  
Consumer Loans Receivable Consumer Loans Receivable
The following table summarizes consumer loans receivable (in thousands):
March 30,
2024		April 1,
2023
Loans held for investment, previously securitized$16,968 $21,000 
Loans held for investment12,826 13,117 
Loans held for sale
15,140 10,846 
Construction advances
722 706 
45,656 45,669 
Deferred financing fees and other, net
(523)(368)
Allowance for loan losses
(1,066)(1,153)
44,067 44,148 
Less current portion(20,713)(17,019)
$23,354 $27,129 
The allowance for loan losses reflects our judgment of the probable loss exposure on loans held for investment. The following table represents changes in the estimated allowance for loan losses, including related additions and deductions to the allowance for loan losses (in thousands):
March 30,
2024		April 1,
2023
Allowance for loan losses at beginning of fiscal year$1,153 $2,115 
Change in estimated loan losses, net(87)(944)
Charge-offs— (37)
Recoveries— 19 
Allowance for loan losses at end of fiscal year$1,066 $1,153 
The consumer loans held for investment had the following characteristics:
March 30,
2024		April 1,
2023
Weighted average contractual interest rate8.1 %8.2 %
Weighted average effective interest rate10.4 %8.8 %
Weighted average months to maturity196150
The following table is a consolidated summary of the delinquency status of the outstanding amortized cost of consumer loans receivable (in thousands):
March 30,
2024		April 1,
2023
Current$43,810 $43,252 
31 to 60 days1,063 1,247 
61 to 90 days131 213 
91+ days652 957 
$45,656 $45,669 
The following table disaggregates gross consumer loans receivable by credit quality indicator at loan inception and fiscal year of origination (in thousands):
March 30, 2024
20242023202220212020PriorTotal
Prime- FICO score 680 and greater$14,107 $328 $96 $885 $1,808 $14,425 $31,649 
Near Prime- FICO score 620-6791,633 — — 1,202 942 8,684 12,461 
Sub-Prime- FICO score less than 620— — — 18 49 723 790 
No FICO score447 — — — — 309 756 
$16,187 $328 $96 $2,105 $2,799 $24,141 $45,656 
April 1, 2023
20232022202120202019PriorTotal
Prime- FICO score 680 and greater$9,471 $185 $1,051 $1,982 $1,191 $16,601 $30,481 
Near Prime- FICO score 620-6791,695 — 1,012 1,131 1,550 8,244 13,632 
Sub-Prime- FICO score less than 62084 — 19 51 — 1,033 1,187 
No FICO score— — — — 24 345 369 
$11,250 $185 $2,082 $3,164 $2,765 $26,223 $45,669 
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 30, 2024, 46% of the outstanding principal balance of the consumer loans receivable portfolio was concentrated in Texas and 10% was concentrated in Florida. As of April 1, 2023, 44% of the outstanding principal balance of the consumer loans receivable portfolio was concentrated in Texas and 13% was concentrated in Florida. Other than Texas and Florida, no state had concentrations in excess of 10% of the principal balance of consumer loans receivable as of March 30, 2024 or April 1, 2023.
Collateral for repossessed loans is acquired through foreclosure or similar proceedings and is recorded at the estimated fair value of the home less the estimated costs to sell. At repossession, the fair value of the collateral is determined based on the historical recovery rates of previously charged-off loans; the loan is charged off and the loss is recorded 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 $0.7 million as of March 30, 2024 and $1.1 million as of April 1, 2023, and are included in Prepaid expenses and other current assets in the Consolidated Balance Sheets. Foreclosure or similar proceedings in progress totaled approximately $0.4 million and $0.5 million as of March 30, 2024 and April 1, 2023, respectively.
Commercial Loans Receivable
The commercial loans receivable balance consists of direct financing arrangements for the home product needs of our independent distributors, community owners and developers. We also provide loans to independent floor plan lenders that then lend to distributors to finance their inventory purchases. The notes are secured by the homes as collateral and, in some instances, other security. Other terms of direct arrangements vary, depending on the needs of the borrower and the opportunity for the Company.
Commercial loans receivable, net consisted of the following (in thousands):
 March 30,
2024		April 1,
2023
Loans receivable (including from affiliates)$91,938 $103,726 
Allowance for loan losses
(781)(1,586)
Deferred financing fees, net(116)(163)
91,041 101,977 
Less current portion of commercial loans receivable (including from affiliates), net(43,316)(44,054)
$47,725 $57,923 
The commercial loans receivable balance had the following characteristics:
March 30,
2024		April 1,
2023
Weighted average contractual interest rate7.4 %7.6 %
Weighted average months outstanding129
The risk of loss is spread over numerous borrowers. Borrower activity is monitored on a regular basis and contractual arrangements are in place to provide adequate loss mitigation in the event of a default. Historically, we have been able to sell repossessed homes, thereby mitigating loss exposure. If a default occurs and collateral is lost, we are exposed to loss of the full value of the home loan. We evaluate the potential for loss from the commercial loan programs on a collective basis, aggregating similar loans based on their terms. Our evaluation also considers the borrower's risk rating, overall financial stability, historical experience and estimates of other economic factors.
The following table represents changes in the estimated allowance for loan losses, including related additions and deductions to the allowance for loan losses (in thousands):
 March 30,
2024		April 1,
2023
Balance at beginning of fiscal year$1,586 $1,011 
Change in estimated loan losses, net(805)575 
Balance at end of fiscal year$781 $1,586 
Loans are subject to regular review and are given management's attention whenever a problem situation appears to be developing. Loans with indicators of potential performance problems are placed on watch list status and are subject to additional monitoring and scrutiny. Nonperforming status includes loans accounted for on a non-accrual basis and accruing loans with principal payments 90 days or more past due. Our policy is to place loans on nonaccrual status when interest is past due and remains unpaid 90 days or more or when there is a clear indication that the borrower is unable or unwilling to make payments as they become due. We will resume accrual of interest once these factors have been remedied. Payments received on non-accrual loans are recorded on a cash basis, first to interest and then to principal, and charge-offs occur when it becomes probable that outstanding amounts will not be recovered. At March 30, 2024, there were no commercial loans 90 days or more past due that were still accruing interest, and we were not aware of any potential problem loans that would have a material effect on the commercial loans receivable balance.
The following table disaggregates our commercial loans receivable by credit quality indicator and fiscal year of origination (in thousands):
March 30, 2024
20242023202220212020Total
Performing$57,691 $25,066 $4,823 $2,144 $2,214 $91,938 
April 1, 2023
20232022202120202019Total
Performing$80,193 $16,028 $4,071 $2,203 $1,231 $103,726 
As of both March 30, 2024 and April 1, 2023, approximately 18% of our outstanding commercial loans receivable principal balance was concentrated in New York. No other state had concentrations in excess of 10% of the principal balance of the commercial loans receivable as of March 30, 2024 or April 1, 2023.
We had concentrations with one independent third-party and its affiliates that equaled 13% and 12% of the net commercial loans receivable principal balance outstanding, all of which was secured, as of March 30, 2024 and April 1, 2023, respectively. The risks created by these concentrations have been considered in the determination of the adequacy of the allowance for loan losses.