CVCO — what changed in the latest 10-K

Text added vs the prior filing · source: 10-K · 2026-05-22

• The QM Rule is a price-based standard that determines QM status using the loan’s APR compared to the Average Prime Offer Rate (APOR), as established under the CFBP final rule, which became mandatorily effective on October 1, 2022. This rule eliminated the prior 43% debt-to-income limit and replaced …

• For 2026, the QM thresholds continue to vary based on loan size and product type, with additional considerations for manufactured housing, which must meet HUD code standards. For loans greater than or equal to $137,958, a loan will not qualify as a QM if the APR exceeds the APOR by 2.25 or more perc…

Text removed vs the prior filing · source: 10-K · 2025-05-23

• In the fourth quarter of fiscal 2025, the Company modified its extensive manufacturing brand lineup by changing all of its various trade names to a new, unified brand under the Cavco name, followed by the city it’s located in. This new branding approach aligns each facility under the strength of the…

• The CFPB issued a final rule, effective June 30, 2021, with mandatory compliance as of October 1, 2022, which expands the definition of a General QM and gives lenders more leeway to determine a borrower's likelihood of repayment. Under the original QM rule, the ratio of the consumer's total monthly …

• The original QM rule also defined a temporary category of QMs, commonly known as the GSE Patch, which includes mortgages that are eligible to be purchased or guaranteed by either of the GSEs while operating under the federal conservatorship. Under the original QM rule, the GSE Patch was set to expir…

• On April 19, 2021, the CFPB issued an interim final rule, effective November 30, 2021, amending Regulation F to require debt collectors to provide written notice to certain consumers of their protections under the Center for Disease Control and Prevention's eviction moratorium order of March 29, 202…

Text added vs the prior filing · source: 10-K · 2026-05-22

• In the factory-built housing segment, the increase in Net revenue was due partially to the acquisition of the American Homestar Corporation ("American Homestar"), which was completed in beginning of the third quarter of fiscal 2026 adding $90.5 million. Operations excluding American Homestar increas…

• In the factory-built housing segment, Gross profit increased from higher average selling prices and higher home sales, partially offset by higher costs per unit. In the financial services segment, Gross profit increased primarily due to higher premiums and improved underwriting results as well as fa…

• Selling, general and administrative expenses related to factory-built housing increased in fiscal year 2026 due to the addition of American Homestar which added $12.5 million of incremental expense. Excluding the impact of American Homestar, compensation expense is up $11.0 million due to higher inc…

• In the financial services segment, Selling, general and administrative expenses increased in fiscal year 2026 primarily due to a $3.4 million increase in compensation and employee benefits compared to the prior year. The addition of American Homestar added $0.2 million of incremental expense.

• Interest income decreased to $16.3 million in fiscal year 2026 from $21.1 million in fiscal year 2025 due to reduced cash balances following the cash purchase of American Homestar on September 29, 2025 and lower interest rates.

Text removed vs the prior filing · source: 10-K · 2025-05-23

• In the factory-built housing segment, the increase in Net revenue was primarily due to higher home sales volume of $286.5 million, partially offset by lower average selling prices of $70.0 million.

• In the factory-built housing segment, Gross profit increased from higher home sales, partially offset by lower average selling prices. In the financial services segment, Gross profit decreased primarily due to higher weather related insurance claims and reduced revenue from loan sales.

• Selling, general and administrative expenses related to factory-built housing increased as a result of a $10.0 million one-time, non-cash charge related to the adjustment of legacy indefinite lived trade names due to the unification of the Company's brand, $6.4 million higher incentive compensation …

• Interest income was flat with $21.1 million in fiscal year 2025 and $21.0 million in fiscal year 2024.

• Interest expense was $0.5 million in fiscal year 2025 and $1.6 million in fiscal year 2024. The change is due to adjustments in the redemption value of the noncontrolling interest for Craftsman Homes occurring in fiscal year 2024, which did not occur in fiscal year 2025 as Craftsman was wholly owned…