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Alliant Credit Union Achieves Record Loans Sales in 2022
Amidst a shifting year, Alliant achieves $470 million in loan sales
Alliant Credit Union today announced that its loan trading desk sold $470 million in commercial and consumer loan participations in 2022 in 25 transactions, up 74% from 2021. On the purchase side, Alliant’s loan trading desk bought $440 million in residential and consumer loan participations and purchases across 8 transactions from credit unions, fintechs, and specialized lenders. The loan trading desk was active across multiple asset classes including first mortgages, unsecured term loans, automotive lease extensions, home equity lines of credit (HELOCs), solar loans, home improvement loans, and RV loans.
“This year was a tale of two markets, with 80% of our loans sold in the first half of the year,” said Gilberto Roman, Senior Manager, Loan Trading Desk at Alliant. “We managed a record year, in the face of consistent rate hikes that decreased demand for fixed-rate loans in the second half of the year.”
Mirroring the shift in markets, Alliant sold a majority of fixed-rate consumer loans in the first half of the year and shifted to sell mainly floating-rate commercial loans in the second half of the year, yielding attractive returns in a volatile market. Alliant expanded its network by transacting with 13 new counterparties, with trading partners encompassing financial technology—“fintech”— lenders in the digital realm, as well as credit unions throughout the United States. Jeremy Pinard, Chief Lending Officer at Vantage West Credit Union said, “As we continue to build out our Capital Markets and Loan Participation capabilities at Vantage West, it is great to partner with Alliant Credit Union, which has built a seamless and efficient participation process to ensure effortless execution.”
Alliant’s commercial real estate mortgage loan sales spanned multifamily properties, including student housing and manufactured housing communities, often with complex structures. In one such example, Alliant funded a $55.8 million loan to use towards the refinance of a 350-unit Class A multi-family property located within the Raleigh North Carolina MSA owned by a highly experienced and respected owner-operator of real estate assets throughout the east coast. The new construction asset was fully stabilized with top-of-the-line amenities. The loan was a variable-rate loan featuring an interest-only period, and flexible exit options. According to the Alliant Commercial Loan Originator, “We were pleased to work with such a strong and experienced operator. The Raleigh MSA is poised to continue growing at a substantial pace into the future, which positions this newly built, high-quality asset for positive operating results.”
With interest rates continuing to move up in 2023, loan trading is an important lever for credit unions to manage loan-to-share ratios. “Now is a great time for credit unions or depositary institutions with liquidity to add high-quality loans to their balance sheets,” said Charles Krawitz, Chief Capital Markets Officer and Head of Commercial Lending at Alliant. “We have attractive participations available such as floating rate HELOCs that can be benefitted from in this rising rate environment.”