|12 Months Ended|
Dec. 31, 2019
|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):
(1)Notes receivable secured by homesites were originated through a business, substantially all the assets of which were sold by us in 2012.
The weighted-average interest rate on our notes receivable was 14.9% and 15.1% at December 31, 2019 and 2018, respectively. All of our VOI loans bear interest at fixed rates. 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, 2019 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:
(1)VOI notes receivable without a FICO score are primarily related to foreign borrowers.
The following table shows the delinquency status of our VOI notes receivable (in thousands):
(1)Includes $10.6 million and $14.3 million as of December 31, 2019 and 2018, respectively, related to VOI notes receivable that, as of such date, had defaulted, but the related VOI note receivable balance had not yet been charged off in accordance with the provisions of certain of our receivable-backed notes payable transactions. These VOI notes receivable have been reflected in the allowance for loan losses.
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://www.xbrl.org/2009/role/commonPracticeRef