Commitments and Contingencies (Tables)

12 Months Ended

Dec. 31, 2012

Commitments and Contingencies

Summary of rent expense, which primarily relates to facilities, model homes, furniture and equipment

	YEAR ENDED DECEMBER 31,
(in thousands)		2012			2011			2010
Total rent expense1	$	5,933		$	7,087		$	11,210
Less: income from subleases		(385	)		(456	)		(1,431	)
Net rent expense	$	5,548		$	6,631		$	9,779

¹

Excludes rent expense associated with the Company's discontinued operations, which totaled $556,000, $365,000 and $306,000 for the years ended December 31, 2012, 2011 and 2010, respectively.

Schedule of future minimum rental commitments under noncancellable leases with remaining terms in excess of one year

(in thousands)
2013	$	4,501
2014		4,623
2015		4,087
2016		2,868
2017		1,751
Thereafter		2,621
Less: income from subleases		(226	)
Total lease commitments	$	20,225

Summary of composition of mortgage loans originated, by loan type; credit score; and loan-to-value ratio

	TWELVE MONTHS ENDED DECEMBER 31,											AVERAGE
		2012		2011		2010		2009		2008			2005-2007
Prime		48.6	%	42.2	%	34.9	%	32.9	%	51.8	%		67.7	%
Government (FHA/VA/USDA)		51.4		57.8		65.1		67.1		48.2			13.8
Alt A		–		–		–		–		–			16.5
Subprime		–		–		–		–		–			2.0
Total		100.0	%	100.0	%	100.0	%	100.0	%	100.0	%		100.0	%
Average FICO credit score		731		726		723		717		711			713
Average combined loan-to-value ratio		90.1	%	90.3	%	90.8	%	91.4	%	90.1	%		88.4	%

Changes in mortgage loan loss and related legal reserves

(in thousands)		2012			2011			2010
Balance at January 1	$	10,141		$	8,934		$	17,875
Provision for losses		1,156			1,368			8,461
Settlements made		(813	)		(161	)		(17,402	)
Balance at December 31	$	10,484		$	10,141		$	8,934

Changes in product liability reserves

(in thousands)		2012			2011			2010
Balance at January 1	$	20,648		$	20,112		$	24,268
Warranties issued		3,899			3,549			4,565
Changes in liability for accruals related to pre-existing warranties		1,866			2,823			5,645
Settlements made		(8,225	)		(5,836	)		(14,366	)
Balance at December 31	$	18,188		$	20,648		$	20,112

Changes in RHIC's insurance reserves

(in thousands)		2012			2011			2010
Balance at January 1	$	18,209		$	21,141		$	25,069
Insurance expense provisions or adjustments		(1,369	)		(900	)		(2,553	)
Loss expenses paid		(2,027	)		(2,032	)		(1,375	)
Balance at December 31	$	14,813		$	18,209		$	21,141