|12 Months Ended|
Dec. 31, 2018
|Notes Receivable [Abstract]|
4. Notes Receivable
The table below provides information relating to our notes receivable and our allowance for loan losses (dollars in thousands):
The weighted-average interest rate on our notes receivable was 15.1% and 15.3% at December 31, 2018 and 2017, respectively. All of our VOI loans bear interest at fixed rates. The weighted-average interest rate charged on notes receivable secured by VOIs was 15.1% and 15.3% at December 31, 2018 and 2017 respectively. Our VOI notes receivable are generally secured by property located in Florida, Missouri, Nevada, South Carolina, Tennessee, and Wisconsin.
Future principal payments due on our notes receivable (including our homesite notes receivable) as of December 31, 2018 are as follows (in thousands):
Credit Quality for Financed Receivables and the Provision for Loan Losses
The activity in our allowance for loan losses (including with respect to our homesite notes receivable) was as follows (in thousands):
We monitor the credit quality of our receivables on an ongoing basis. We hold large amounts of homogeneous VOI notes receivable and assess uncollectibility based on pools of receivables as we don’t believe that there are significant concentrations of credit risk with any individual counterparty or groups of counterparties. In estimating loan losses, we do not use a single primary indicator of credit quality but instead we evaluate our VOI notes receivable based upon a static pool analysis that incorporates the aging of the respective receivables, default trends and prepayment rates by origination year, as well as the FICO scores of the borrowers.
The percentage of gross notes receivable outstanding by FICO score at origination were as follows:
The following table shows the delinquency status of our VOI notes receivable (in thousands):
The entire disclosure for claims held for amounts due a entity, excluding financing receivables. Examples include, but are not limited to, trade accounts receivables, notes receivables, loans receivables. Includes disclosure for allowance for credit losses.
Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef