Company: CVCO
Filing Date: 2025-10-31
Form Type: 10-Q
Source: 0001628280-25-047849
Chunk: 30

Company: CAVCO INDUSTRIES, INC.
Filing Date: 2025-10-31
Form: 10-Q
Item: Part I, Item 1
Chunk 30
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 2024 (in thousands):Three Months EndedSix Months EndedSeptember 27,2025September 28,2024September 27,2025September 28,2024Balance at beginning of period$13,118 $18,927 $16,201 $10,540 Net incurred losses during the period7,782 14,128 18,885 32,091 Net claim payments during the period(10,640)(18,435)(24,826)(28,011)Balance at end of period$10,260 $14,620 $10,260 $14,620 

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 $137 million and $133 million at September 27, 2025 and March 29, 2025, respectively, without reduction for the estimated resale value of the homes. During the three and six months ended September 27, 2025, we received a demand notice for one home. The inventory was obtained and resold. Our reserve for repurchase commitments, recorded in Accrued expenses and other current liabilities, was $3.3 million at September 27, 2025 and March 29, 2025.Construction-Period Mortgages. Loan contracts with off-balance sheet commitments are summarized below (in thousands):

11

September 27,2025March 29,2025Construction loan contract amount$10,459 $12,366 Cumulative advances(5,126)(4,210)$5,333 $8,156 Representations and Warranties of Mortgages Sold. The reserve for contingent repurchases and indemnification obligations was $0.6 million as of September 27, 2025 and 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 six months ended September 27, 2025 or September 28, 2024.Interest Rate Lock Commitments ("IRLCs"). As of September 27, 2025 and March 29, 2025, we had outstanding IRLCs with a notional amount of $25.2 million and $16.3 million, respectively.