What changed in this filing

/stocks — the workspaceLOADING

Item 1. Business

2026-05-22 compared with 2025-05-23 · 39 added, 47 removed, 357 unchanged (19% of the section changed)

15 unchanged sentences

CountryPlace is authorized by the U.S.

Department of Housing and Urban Development ("HUD") to directly endorse Federal Housing Administration ("FHA") Title I and Title II mortgage insurance, is an approved lender with the U.S.

Department of Veteran Affairs ("VA") and the U.S.

Department of Agriculture ("USDA") under its Single Family Housing Guaranteed Loan Program, is approved by GNMA to issue GNMA-insured mortgage-backed securities and is authorized to sell mortgages to, and service mortgages for, FNMA and FHLMC.

Department of Housing and Urban Development ("HUD") to directly endorse Federal Housing Administration ("FHA") Title I and Title II mortgage insurance, is approved by GNMA to issue GNMA-insured mortgage-backed securities and is authorized to sell mortgages to, and service mortgages for, FNMA and FHLMC.

CountryPlace is also an approved servicer with the U.S.

Department of Veterans Affairs ("VA") and the U.S.

Department of Agriculture ("USDA") under its Single Family Housing Guaranteed Loan Program.

A conforming mortgage or loan is one that conforms to the guidelines of a Government-Sponsored Enterprise ("GSE"), such as Fannie Mae, Freddie Mac or a government agency, such as FHA;

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We also market and sell to manufactured housing community owners, subdivision developers and second home or vacation home buyers.

We focus on developing and maintaining the resources necessary to meet our customer's desire for varied and unique specifications in an efficient factory production environment.

We focus on developing and maintaining the resources necessary to meet a customer's desire for varied and unique specifications in an efficient factory production environment.

This enables us to attract distributors and consumers who desire the flexibility the custom home building process provides but who also seek the value and affordability created by building a home on a factory production line.

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We are focused on building quality, energy efficient homes for the modern home buyer.

Our green building initiatives involve the creation of an energy efficient envelope, including higher utilization of renewable materials and provide lower utility costs.

Our green building initiatives involve a high utilization of renewable materials, creating an energy-efficient envelope that provides for lower utility costs.

We also build homes designed to use alternative energy sources, such as solar.

Once a factory-built home is built at our facilities, it is then generally transported by independent trucking companies or our Company-owned trucks either to a retail sales center, planned community, housing development, work site or the home buyer's site.

Once a factory-built home is built at our facilities, it is then generally transported by independent trucking companies or our Company-owned trucks to a retail sales center, planned community, housing development, work site or the home buyer's site.

Distributors, or other independent installers utilized by us for homes sold through our Company-owned retail stores, are responsible for placing the home on site and, in most instances, arranging for connections to utilities and providing installation and finish-out services.

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The efficiency of the assembly-line process and the benefits of constructing homes in a controlled factory environment enable us to produce quality homes in less time and at a lower cost per square foot than building homes on individual sites.

We operate a total of 31 homebuilding production lines in Millersburg and Woodburn, Oregon;

We operate a total of 33 homebuilding production lines with domestic locations in Millersburg and Woodburn, Oregon;

Riverside, California;

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Duncan, Oklahoma;

Austin, Fort Worth, Seguin and Waco, Texas;

Ojinaga, Mexico (two lines);

Austin, Fort Worth (two lines), Lancaster, Seguin and Waco, Texas;

Montevideo, Minnesota;

3 unchanged sentences

Douglas and Moultrie, Georgia;

Shippenville (two) and Emlenton, Pennsylvania;

Shippenville (two lines) and Emlenton, Pennsylvania;

Martinsville and Rocky Mount, Virginia;

Crouse and Hamlet, North Carolina;

and Ocala and Plant City, Florida.

Ocala and Plant City, Florida;

and two international lines in Ojinaga, Mexico.

These manufacturing facilities range from approximately 79,000 to 341,000 square feet of floor space.

11 unchanged sentences

It is difficult to predict the future of housing demand, employee availability, our supply chain or the Company's performance and operations.

Our home order backlog at March 29, 2025 was approximately $197 million in wholesale sales values, up $6 million from $191 million one year earlier.

Our home order backlog at March 28, 2026 was approximately $195 million in wholesale sales values, down $2 million from $197 million one year earlier.

Distributors may cancel orders prior to production without penalty.

4 unchanged sentences

We sold 20,842, 19,753 and 16,928 factory-built homes in fiscal years 2026, 2025 and 2024, respectively, through Company-owned and independent distribution channels.

As of March 29, 2025, there were a total of 80 Company-owned retail stores, located in Oregon, Arizona, Nevada, New Mexico, Texas, Indiana, Oklahoma, Florida and New York.

Forty-six of the Company-owned retail stores are located in Texas.

As of March 28, 2026, there were a total of 92 Company-owned retail stores, located in thirteen states.

Fifty-seven of the Company-owned retail stores are located in Texas.

Company-owned retail stores are generally located on main roads or highways with high visibility, each having a sales office, which is generally a factory-built structure, and a variety of model homes of various sizes, floor plans, features and prices.

3 unchanged sentences

We internally finance home inventories at Company-owned retail stores.

As of March 29, 2025, we had a network of independent distributors, of whom 9% were in North Carolina, 8% in Arizona, 7% in Texas, 6% in South Carolina, and 5% in each of California, Florida, Georgia and New York, based on the quantity of wholesale shipments during fiscal year 2025.

As of March 28, 2026, we had a network of independent distributors, of whom 9% were in North Carolina, 9% in Arizona, 7% in South Carolina, 6% in Georgia, and 5% in each of California, Florida, New York and Texas, based on the quantity of wholesale shipments during fiscal year 2026.

The remaining 49% were in 40 other states and Canada.

11 unchanged sentences

For a description of wholesale floor plan financing arrangements used by independent distributors and our obligations in connection with these arrangements, see "Company Provided Financing — Commercial Financing" below.

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 corporate brand while honoring the local expertise and strong reputations built in each region.

To further enhance customer experience and marketing efficiency, the Company is also streamlining its product segmentation.

Going forward, homes will be marketed by clearly defined product lines instead of legacy brand names.

This change is designed to improve digital discoverability and simplify the home buying process for consumers, dealers, community developers, and partners.

We provide the retail home buyer a one-year limited warranty covering defects in material or workmanship in home structure, plumbing and electrical systems.

5 unchanged sentences

We offer conforming and non-conforming mortgages and home-only loans to purchasers of numerous brands of factory-built homes sold by Company-owned retail stores and certain independent distributors, builders, communities and developers.

We are authorized to directly endorse FHA Title I and Title II mortgage insurance, are an approved lender with the VA and the USDA under its Single Family Housing Guaranteed Loan Program, are approved to issue GNMA-insured mortgage-backed securities and are authorized to sell mortgages to, and service mortgages for, Fannie Mae and Freddie Mac.

We are authorized to directly endorse FHA Title I and Title II mortgage insurance, are approved to issue GNMA-insured mortgage-backed securities and are authorized to sell mortgages to, and service mortgages for, Fannie Mae and Freddie Mac.

CountryPlace is also, an approved servicer with the VA and the USDA under its Single Family Housing Guaranteed Loan Program.

Most loans originated by us are sold to investors, and we provide various loan servicing functions for non-affiliated entities under contract.

The loan contracts are fixed and step rate and have monthly scheduled payments of principal and interest.

The loan contracts are fixed rate and have monthly scheduled payments of principal and interest.

The scheduled payments for each contract would, if made on their respective due dates, result in a full amortization of the contract.

Loan contracts secured by collateral that is geographically concentrated could experience higher rates of delinquencies, default and foreclosure losses than loan contracts secured by collateral that is more geographically dispersed.

Our loan contracts are secured by factory-built homes located in 26 states, with the largest concentrations in Texas, Florida, New Mexico and Oklahoma (see Note 6 to the Consolidated Financial Statements for additional geographic concentration information).

W e continue to assist customers in need by servicing existing loans and insurance policies and complying with state and federal regulations regarding loan forbearance, home foreclosures and policy cancellations.

Our loan contracts are secured by factory-built homes located in 27 states, with the largest concentrations in Texas, Florida, Oklahoma, and New Mexico (see Note 6 to the Consolidated Financial Statements for additional geographic concentration information).

We continue to assist customers in need by servicing existing loans and insurance policies and complying with state and federal regulations regarding loan forbearance, home foreclosures and policy cancellations.

See further details in the "Government Regulation" section below.

Certain loans serviced for investors expose us to cash flow deficits if customers do not make contractual monthly payments of principal and interest in a timely manner.

For certain loans serviced for Ginnie Mae and Freddie Mac, and home-only loans serviced for certain other investors, we must remit scheduled monthly principal and/or interest payments and principal curtailments regardless of whether monthly mortgage payments are collected from borrowers.

For certain loans serviced for Ginnie Mae and Freddie Mac we must remit scheduled monthly principal and/or interest payments and principal curtailments regardless of whether monthly mortgage payments are collected from borrowers.

We believe that providing financing alternatives improves our responsiveness to the financing needs of prospective home buyers and presents opportunities for additional sources of loan origination and servicing revenues.

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We believe the sector of the housing market in which manufactured housing is most competitive includes consumers from diverse backgrounds with household incomes generally under $90,000.

This segment has a high representation of persons aged 55 and older, as well as young single persons and young married couples.

This segment has a high representation of persons aged 55 and older, as well as 30+ single persons and married couples.

The low cost of a fully equipped manufactured home compared to a site-built alternative is attractive to these consumers.

7 unchanged sentences

The two largest manufactured housing consumer demographics, young adults and those who are age 55 and older, are both growing.

According to World Bank population estimates and projections released December 2024, the U.S.

According to World Bank population estimates and projections released in April 2026, the U.S.

adult population is estimated to expand by approximately 7.5 million between 2026 and 2031.

12 unchanged sentences

Vanderbilt Mortgage and Finance Inc.;

and Triad Financial Services, Inc an affiliate of Champions Homes, Inc.

and Triad Financial Services, Inc.

Certain of these competitors are larger than CountryPlace and have access to substantially more capital.

31 unchanged sentences

A variety of laws affect the financing of the homes we manufacture.

The Federal Consumer Credit Protection Act (the "Truth-in-Lending Act" or "TILA") and Regulation Z promulgated thereunder require written disclosure of information relating to such financing, including the amount of the annual percentage interest rate and any finance charges.

The Federal Fair Credit Reporting Act also requires certain disclosures to potential customers concerning credit information used as a basis to deny credit.

2 unchanged sentences

The Consumer Financial Protection Bureau ("CFPB") has adopted or proposed various Trade Regulation Rules dealing with unfair credit and collection practices and the preservation of consumers' claims and defenses.

Direct loans and mortgage loans eligible for inclusion in a Ginnie Mae security are subject to the credit underwriting requirements of the FHA, USDA or VA.

A variety of state laws also regulate the form of financing documents and the allowable deposits, finance charge and fees chargeable pursuant to financing documents.

8 unchanged sentences

Certain CFPB mortgage finance rules required under the Dodd-Frank Act, as modified by the Dodd-Frank Reform Act, apply to consumer credit transactions secured by a dwelling, which include real property mortgages and home-only loans secured by manufactured homes.

These rules defined standards for origination of a Qualified Mortgage ("QM"), established specific requirements for lenders to prove borrowers' ability to repay loans and outlined the conditions under which QMs are subject to safe harbor limitations on liability to borrowers.

These rules defined standards for origination of a Qualified Mortgage ("QM"), established specific requirements for lenders to prove borrowers' ability to repay loans based on verified income, assets, and debt obligations.

The rules also establish interest rates and other cost parameters for determining which QMs fall under safe harbor protection.

Among other issues, QMs with interest rates and other costs outside the limits are deemed "rebuttable" by borrowers and expose the lender and its assignees (including investors in loans, pools of loans and instruments secured by loans or loan pools) to possible litigation and penalties.

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 debt to total monthly income could not exceed 43% for a loan to be considered a QM.

In December 2020, the Bureau issued a QM Final Rule which amended Regulation Z by replacing the original debt ratio-based QM definition with a limit based on loan pricing, among other changes to the definition.

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 expire on July 1, 2021.

However, the CFPB extended the mandatory compliance date of the new General QM rule beyond July 1, 2021.

Nonetheless, some lenders originating loans for sale to the GSEs elected to no longer originate General QM loans with debt-to-income ratios in excess of 43% or GSE Patch QM loans for borrower applications received on or after July 1, 2021.

While many manufactured homes are currently financed with agency-conforming mortgages in which the ability to repay is verified, and interest rates and other costs are within the safe harbor limits established under the CFPB mortgage finance rules, certain loans to finance the purchase of manufactured homes, especially home-only loans and non-conforming mortgages, may fall outside the safe harbor limits.

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 it with pricing thresholds tied to the APR-APOR spread.

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 percentage points for manufactured homes or modular homes.

For loans greater than or equal to $82,775 (indexed for inflation) but less than $137,958, the threshold increases to 3.5 percentage points for modular or site-built homes.

For manufactured home loans with amounts less than $137,958, the threshold is 6.5 percentage points.

Similarly, for loans less than $82,775, the APR cannot exceed the APOR by 6.5 percentage points for manufactured or modular homes in order to maintain QM status.

While many manufactured home loans qualify for QM status when the ability to repay is verified, and interest rates and other costs are within the safe harbor limits established under the CFPB mortgage finance rules, certain loans to finance the purchase of manufactured homes, especially home-only loans and non-conforming mortgages, may fall outside the safe harbor limits.

Failure to comply with these regulations, changes in these or other regulations, or the imposition of additional regulations, could affect our earnings, limit our access to capital and have a material adverse effect on our business and results of operations.

26 unchanged sentences

Fannie Mae, Freddie Mac and Ginnie Mae each require that lenders such as CountryPlace maintain minimum levels of capital and liquidity to be eligible to sell or service single-family mortgage loans purchased by the GSEs or included in mortgage-backed securities guaranteed by Ginnie Mae.

The current eligibility requirements became effective on December 31, 2015.

On January 31, 2020, Federal Housing Finance Agency ("FHFA") initially released its "Servicer Eligibility 2.0" proposed enhancements to the requirements for public input.

The requirements establish a minimum level of tangible net worth and liquidity that distinguishes between loans serviced for Ginnie Mae and the GSEs and include a fixed base capital requirement as well as an incremental charge that reflects the volume and risk of a seller/servicer's servicing portfolio.

The requirements also establish minimum liquidity levels based on a fixed percentage of the sellers/servicers loans held for sale and interest rate lock commitments outstanding.

The Federal Housing Finance Agency ("FHFA") and Ginnie Mae jointly issued updated financial eligibility requirements for Fannie Mae, Freddie Mac and Ginnie Mae seller/servicers effective September 30, 2023 and December 31, 2023, respectively.

The requirements establish a minimum level of tangible net worth and liquidity that distinguishes between loans serviced for Ginnie Mae, GSEs, and non-agency entities and include a fixed base capital requirement as well as an incremental charge that reflects the volume and risk of a seller/servicer's servicing portfolio.

The requirements also establish minimum liquidity levels based on a percentage of the seller/servicer’s loans held for sale and interest rate lock commitments outstanding.

Ginnie Mae eligibility requirements include risk-based capital adjustments for excess value of mortgage servicing rights.

The final net worth and base liquidity requirements became effective on September 30, 2023, and additional loan origination and Ginnie Mae's risk-based capital requirements become effective December 31, 2023.

We have evaluated the requirements and believe that, after review of CountryPlace's capital and liquidity, we continue to satisfy such requirements.

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, 2021.

The interim final rule also prohibits certain communication methods and content and places limits on debt collectors' attempts to communicate with consumers who are obligated to repay debt, attorneys representing them or related parties.

On December 9, 2021, the Federal Trade Commission ("FTC") amended the Safeguards Rule, 16 CFR Part 314, which addresses the safeguard and protections that financial institutions are required to have in place to protect consumer financial data and other sensitive information.

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We continue to focus on setting clear expectations.

Our Executive Team will continue its stewardship through direct oversight and involvement.

Our executive team, led by our Chief Executive Officer, will continue its stewardship through direct oversight and involvement.

Cavco's Corporate Governance Guidelines, the charters of committees of our Board and our Code of Conduct can be found in the General Document section on our investor relations website at www.investor.cavco.com.

23 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business