Company: CVCO
Filing Date: 2025-08-04
Form Type: 10-Q
Source: 0000278166-25-000128
Chunk: 31

Company: CAVCO INDUSTRIES, INC.
Filing Date: 2025-08-04
Form: 10-Q
Item: Part I, Item 1
Chunk 31
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 this limit, amounts are recoverable through reinsurance for catastrophic losses in excess of $4.0 million per occurrence, up to a maximum of $90 million in the aggregate for that occurrence.The following details the activity in the incurred but not reported reserve for the three months ended June 28, 2025 and June 29, 2024 (in thousands):Three Months EndedJune 28,2025June 29,2024Balance at beginning of period$16,201 $10,540 Net incurred losses during the period11,103 17,963 Net claim payments during the period(14,186)(9,576)Balance at end of period$13,118 $18,927 

14. Commitments and Contingencies

Repurchase Contingencies. The maximum amount for which the Company was liable under the terms of repurchase agreements with financial institutions that provide inventory financing to independent distributors of our products approximated $133 million at June 28, 2025 and March 29, 2025, without reduction for the estimated resale value of the homes. In the three months ended June 28, 2025, we did not receive any demand notices. Our reserve for repurchase commitments, recorded in Accrued expenses and other current liabilities, was $3.2 million at June 28, 2025 and $3.3 million at March 29, 2025.Construction-Period Mortgages. Loan contracts with off-balance sheet commitments are summarized below (in thousands):June 28,2025March 29,2025Construction loan contract amount$10,368 $12,366 Cumulative advances(4,257)(4,210)$6,111 $8,156 Representations and Warranties of Mortgages Sold. The reserve for contingent repurchases and indemnification obligations was $0.5 million as of June 28, 2025 and $0.6 million as of March 29, 2025, included in Accrued expenses and other current liabilities on the Consolidated Balance Sheets. There were no claim requests that resulted in the repurchase of any loans during the three months ended June 28, 2025 or June 29, 2024.

11

Interest Rate Lock Commitments ("IRLCs"). As of June 28, 2025 and March 29, 2025, we had outstanding IRLCs with a notional amount of $24.