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Alliant Credit Union Sold $268 Million and Acquired $715 Million in Loans in 2021
Alliant Credit Union today announced that its loan trading desk sold $268 million in commercial and consumer loan participations in 2021 in 25 transactions, up from $127 million in 2020. On the purchase side, Alliant bought $715 million in residential and consumer loan participations across 14 transactions with credit unions, fintechs and specialized lenders, up from $93 million in 2020.
“Partnering with other credit unions and fintech lenders has enabled us to improve returns for our members and opened the door to innovating with new loan product types,” said Charles Krawitz, Senior Vice President, Chief Capital Markets Officer and Head of Commercial Lending at Alliant. “As we deepen our national network of relationships, we uncover additional loan trading opportunities to continue our success.”
Alliant has established a broad footprint for its loan trading desk, with trading partners encompassing financial technology—“fintech”— lenders in the digital realm, as well as credit unions throughout the United States. For example, Washington State Employees Credit Union (WSECU) acquired a student housing loan participation from Alliant.
“The Alliant team has been an excellent partner in developing and executing deals,” said Wayne Kawakami, Vice President, Finance, of WSECU, a Washington-based credit union. “Alliant’s documentation is consistently high quality and enhances our ability to assess the loans. We appreciate strong communication from their team and their willingness to accommodate our decision-making and execution needs throughout the transaction process.”
Loan trading activities reach new heights
On the acquisitions side, Alliant’s loan trading desk purchasedd $715 million in loan participations across 14 transactions. 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 and home improvement loans. The $268 million in loan participations sold by Alliant’s loan trading desk in 2021 marked a 113% annual increase. Of the 25 transactions, 18 involved commercial property mortgages. The remaining seven pools sold comprised consumer RV loans—an increasingly active sector for Alliant’s loan trading desk. Georgia United Credit Union, which started partnering with Alliant CU in 2021, was one purchaser of such loans.
“We have completed multiple deals with Alliant, and it has been a great relationship for us,” said Anthony Straub, Senior Commercial Credit Officer, Georgia United Credit Union. “Their loan packages are complete and easy to work through, and Alliant’s team members have been very responsive to questions and document requests. We look forward to growing our partnership with them even more.”
Alliant’s commercial real estate mortgage loan sales were primarily loans for multifamily properties, including student housing, often with complex structures. For example, Alliant funded a $32 million loan for the acquisition of a newly constructed, Class A, 18-story student housing tower located near the University of Texas (UT Austin) by a Delaware Statuatory Trust (DST). The loan structure included an interest-only period and flexible exit options allow for the inclusion of a condominium component.