Company: CVCO
Filing Date: 2025-01-31
Form Type: 10-Q
Source: 0000278166-25-000007
Chunk: 34

Company: CAVCO INDUSTRIES, INC.
Filing Date: 2025-01-31
Form: 10-Q
Item: Part I, Item 1
Chunk 34
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.The following details the activity in the incurred but not reported reserve for the three and nine months ended December 28, 2024 and December 30, 2023 (in thousands):Three Months EndedNine Months EndedDecember 28,2024December 30,2023December 28,2024December 30,2023Balance at beginning of period$14,620 $9,154 $10,540 $10,939 Net incurred losses during the period9,662 9,489 41,753 29,152 Net claim payments during the period(12,028)(9,189)(40,039)(30,637)Balance at end of period$12,254 $9,454 $12,254 $9,454 

13. 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 $122 million and $121 million at December 28, 2024 and March 30, 2024, respectively, without reduction for the estimated resale value of the homes. In the quarter ended December 28, 2024 we received one repurchase demand notice for two homes. In all cases, the estimated fair value exceeded the repurchase price so no loss reserve was deemed necessary. Our reserve for repurchase commitments, recorded in Accrued expenses and other current liabilities, was $3.2 million at December 28, 2024 and $2.9 million at March 30, 2024.Construction-Period Mortgages. Loan contracts with off-balance sheet commitments are summarized below (in thousands):December 28,2024March 30,2024Construction loan contract amount$12,669 $1,960 Cumulative advances(6,042)(722)$6,627 $1,238 Representations and Warranties of Mortgages Sold. The reserve for contingent repurchases and indemnification obligations was $0.7 million as of December 28, 2024 and $0.6 million as of March 30, 2024, 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 nine months ended December 28, 2024 or December 30, 2023.Interest Rate Lock