The composition of our mortgage loan portfolio is as follows:



(dollars in 000s)
As of April 30,	2014					2013
	Amount			% of Total		Amount			% of Total
Adjustable-rate loans	$	149,480		54	%	$	191,093		55	%
Fixed-rate loans	127,943			46	%	159,142			45	%
	277,423			100	%	350,235			100	%
Unamortized deferred fees and costs	2,277					2,868
Less: Allowance for loan losses	(11,272		)			(14,314		)
	$	268,428				$	338,789

Our loan loss allowance as a percent of mortgage loans was 4.1% as of April 30, 2014 and 2013.

Activity in the allowance for loan losses for the years ended April 30, 2014, 2013 and 2012 is as follows:



(in 000s)
Year ended April 30,	2014			2013			2012
Balance as of the beginning of the year	$	14,314		$	26,540		$	92,087
Provision	8,271			13,283			24,075
Recoveries	4,040			3,338			292
Charge-offs	(15,353		)	(28,847		)	(89,914		)
Balance as of the end of the year	$	11,272		$	14,314		$	26,540

Charge-offs increased during fiscal year 2012 primarily due to a change in practice determined by our regulators, under which we now charge-off loans 180 days past due.

When determining our allowance for loan losses, we evaluate loans less than 60 days past due on a pooled basis, while loans we consider impaired, including those loans more than 60 days past due or modified as TDRs, are evaluated individually. The balance of these loans and the related allowance is as follows:



(in 000s)
As of April 30,	2014				2013
	Portfolio Balance		Related Allowance		Portfolio Balance		Related Allowance
Pooled (less than 60 days past due)	$	158,496	$	4,508	$	207,319	$	5,628
Impaired:
Individually (TDRs)	43,865		4,346		55,061		4,924
Individually (60 days or more past due)	75,062		2,418		87,855		3,762
	$	277,423	$	11,272	$	350,235	$	14,314

Detail of our mortgage loans held for investment and the related allowance as of April 30, 2014 is as follows:



(dollars in 000s)
	Outstanding Principal Balance		Loan Loss Allowance				% 30+ Days Past Due
	Outstanding Principal Balance		Amount		% of Principal		% 30+ Days Past Due
Purchased from SCC	$	159,566	$	8,655	5.4	%	27.1	%
All other	117,857		2,617		2.2	%	7.5	%
	$	277,423	$	11,272	4.1	%	20.1	%

We review the credit quality of our portfolio primarily based on the following criteria: (1) originator; (2) the level of documentation obtained for loan at origination; (3) occupancy status of property at origination; (4) geography; and (5) credit score and loan to value at origination. We specifically evaluate each loan and assign an internal risk rating of high, medium or low to each loan. The risk rating is based upon multiple loan characteristics that correlate to delinquency and loss. These characteristics include, but are not limited to, the five criteria listed above. These loan attributes are evaluated quarterly against a variety of additional characteristics to ensure the appropriate data is being utilized to determine the level of risk within the portfolio. All criteria are obtained at the time of origination and are only subsequently updated if the loan is refinanced.

Credit quality indicators as of April 30, 2014 include the following:



(in 000s)
Credit Quality Indicators	Purchased from SCC		All Other		Total Portfolio
Occupancy status:
Owner occupied	$	117,457	$	77,572	$	195,029
Non-owner occupied	42,109		40,285		82,394
	$	159,566	$	117,857	$	277,423
Documentation level:
Full documentation	$	53,019	$	83,833	$	136,852
Limited documentation	4,897		12,971		17,868
Stated income	88,207		13,075		101,282
No documentation	13,443		7,978		21,421
	$	159,566	$	117,857	$	277,423
Internal risk rating:
High	$	45,688	$	—	$	45,688
Medium	113,878		—		113,878
Low	—		117,857		117,857
	$	159,566	$	117,857	$	277,423

Loans given our internal risk rating of "high" generally had no documentation or were based on stated income. Loans given our internal risk rating of "medium" generally had full documentation or were based on stated income, with loan-to-value ratios at origination of more than 80%, and were made to borrowers with credit scores below 700 at origination. Loans given our internal risk rating of "low" generally had loan-to-value ratios at origination of less than 80% and were made to borrowers with credit scores greater than 700 at origination.

Our mortgage loans held for investment include concentrations of loans to borrowers in certain states, which may result in increased exposure to loss as a result of changes in real estate values and underlying economic or market conditions related to a particular geographical location. Approximately 51% of our mortgage loan portfolio consists of loans to borrowers located in the states of Florida, California and New York.

Detail of the aging of the mortgage loans in our portfolio as of April 30, 2014 is as follows:



(in 000s)
	Less than 60 Days Past Due		60 – 89 Days Past Due		90+ Days Past Due⁽¹⁾		Total Past Due		Current		Total
Purchased from SCC	$	12,052	$	2,623	$	49,431	$	64,106	$	95,460	$	159,566
All other	5,421		847		8,451		14,719		103,138		117,857
	$	17,473	$	3,470	$	57,882	$	78,825	$	198,598	$	277,423


⁽¹⁾	We do not accrue interest on loans past due 90 days or more.

Information related to our non-accrual loans is as follows:



			(in 000s)
As of April 30,	2014		2013
Loans:
Purchased from SCC	$	61,767	$	70,327
Other	12,528		14,906
	74,295		85,233
TDRs:
Purchased from SCC	4,648		3,719
Other	951		502
	5,599		4,221
Total non-accrual loans	$	79,894	$	89,454

Information related to impaired loans is as follows:



(in 000s)
	Balance With Allowance		Balance With No Allowance		Total Impaired Loans		Related Allowance
As of April 30, 2014:
Purchased from SCC	$	27,924	$	71,075	$	98,999	$	3,239
Other	5,176		14,752		19,928		3,525
	$	33,100	$	85,827	$	118,927	$	6,764
As of April 30, 2013:
Purchased from SCC	$	33,791	$	84,592	$	118,383	$	6,573
Other	7,601		16,932		24,533		2,113
	$	41,392	$	101,524	$	142,916	$	8,686

Information related to the allowance for impaired loans is as follows:



(in 000s)
As of April 30,	2014		2013
Portion of total allowance for loan losses allocated to impaired loans and TDR loans:
Based on collateral value method	$	2,418	$	3,762
Based on discounted cash flow method	4,346		4,924
	$	6,764	$	8,686

Information related to our impaired loans is as follows:



(in 000s)
For the year ended April 30,	2014		2013		2012
Average impaired loans:
Purchased from SCC	$	93,873	$	133,936	$	211,867
All other	22,607		25,425		33,940
	$	116,480	$	159,361	$	245,807

Interest income recognized on impaired and nonaccrual loans was immaterial for all periods presented.