Consumer Loans Receivable (Tables)

3 Months Ended

9 Months Ended

Apr. 02, 2016

Dec. 31, 2016

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



	December 31, 2016			April 2, 2016
Loans held for investment (acquired on Palm Harbor Acquisition Date)	$	62,705		$	68,951
Loans held for investment (originated after Palm Harbor Acquisition Date)	8,826			6,120
Loans held for sale	17,459			8,765
Construction advances	7,512			6,566
Consumer loans receivable	96,502			90,402
Deferred financing fees and other, net	(1,348		)	(844		)
Consumer loans receivable, net	$	95,154		$	89,558

Acquired Consumer Loans Receivable Held for Investment



	December 31, 2016			April 2, 2016
	(in thousands)
Consumer loans receivable held for investment – contractual amount	$	148,999		$	166,793
Purchase discount
Accretable	(58,938		)	(69,053		)
Non-accretable	(27,166		)	(28,536		)
Less consumer loans receivable reclassified as other assets	(190		)	(253		)
Total acquired consumer loans receivable held for investment, net	$	62,705		$	68,951

Accretable Yield Movement on Acquired Consumer Loans Receivable

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



	Three Months Ended						Nine Months Ended
	December 31, 2016			December 26, 2015			December 31, 2016			December 26, 2015
Balance at the beginning of the period	$	62,209		$	70,450		$	69,053		$	73,202
Accretion	(2,399		)	(2,692		)	(7,363		)	(8,128		)
Reclassifications (to) from non-accretable discount	(872		)	(134		)	(2,752		)	2,550
Balance at the end of the period	$	58,938		$	67,624		$	58,938		$	67,624

Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score



	April 2, 2016
	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	$	776	$	543	$	336	$	—	$	—	$	1,655
620-719	13,139		9,100		3,683		—		96		26,018
720+	14,751		9,409		2,324		—		215		26,699
Other	55		—		447		—		—		502
Subtotal	28,721		19,052		6,790		—		311		54,874
Conforming mortgages
0-619	—		—		164		95		171		430
620-719	—		—		1,428		3,355		5,847		10,630
720+	—		—		320		3,116		2,436		5,872
Subtotal	—		—		1,912		6,566		8,454		16,932
Non-conforming mortgages
0-619	88		585		1,392		—		—		2,065
620-719	1,365		5,290		3,664		—		—		10,319
720+	1,684		3,382		826		—		—		5,892
Other	—		—		307		—		—		307
Subtotal	3,137		9,257		6,189		—		—		18,583
Other loans
Subtotal	—		—		13		—		—		13
	$	31,858	$	28,309	$	14,904	$	6,566	$	8,765	$	90,402

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 31, 2016
	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	$	725	$	467	$	309	$	—	$	39	$	1,540
620-719	12,070		8,307		4,513		—		633		25,523
720+	13,179		8,257		3,660		—		1,968		27,064
Other	52		—		437		—		—		489
Subtotal	26,026		17,031		8,919		—		2,640		54,616
Conforming mortgages
0-619	—		—		162		—		299		461
620-719	—		—		1,966		5,050		9,801		16,817
720+	—		—		248		2,462		4,719		7,429
Subtotal	—		—		2,376		7,512		14,819		24,707
Non-conforming mortgages
0-619	86		487		1,345		—		—		1,918
620-719	1,321		4,996		3,451		—		—		9,768
720+	1,612		3,077		489		—		—		5,178
Other	—		—		303		—		—		303
Subtotal	3,019		8,560		5,588		—		—		17,167
Other loans
Subtotal	—		—		12		—		—		12
	$	29,045	$	25,591	$	16,895	$	7,512	$	17,459	$	96,502

Loans and Leases Receivable, Other Information

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



	December 31, 2016		April 2, 2016
Prepayment rate	13.7	%	13.0	%
Default rate	1.1	%	1.0	%

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 December 31, 2016, would decrease by approximately $1.2 million and $5.0 million for the expected prepayment rate and expected default rate, respectively.