Alliant loan trading desk starts 2022 with participation sales of $139.6 million
CHICAGO, IL (March 22, 2022) — Alliant Credit Union’s loan trading desk has started the year off strong with $139.6 million of loan participations sold in the first two months of 2022, primarily consisting of recreational vehicle (RV) loans. A long time player in the RV lending space, Alliant began financing RVs for members in 2008, and in 2013 expanded into indirect channels focusing on larger franchise dealerships. Alliant’s RV loan portfolio is roughly $1.5 billion.
The rising popularity of RV travel represents a growing opportunity for credit unions, encouraging them to be more comfortable with RV loans as an asset class. While RV loans have similarities to auto loans, their risk-adjusted returns tend to outperform auto loans. The nature of the collateral, larger loan sizes, longer loan terms, and more complex underwriting make RV loans an appealing speciality lending sector. Alliant’s year-to-date sales have provided other financial institutions the opportunity to gain access to a high-performing asset class while furthering Alliant’s lending objectives. The 2022 sales have averaged $34.9 million per pool.
“We are heartened by the number of credit unions that have come to understand the appeal of RV loans and look to Alliant as a knowledgeable and reliable counterparty,” said Charles Krawitz, senior vice president, chief capital markets officer & head of commercial lending at Alliant. “Through loan sales, we are able to manage concentration risk while providing attractive opportunites to other credit unions. It is a win-win.”
The RV market is booming with even more room to grow. The best year on record for RV sales was 2021, with just over 600,000 shipments. The RV Industry Association (RVIA) reported an increase of 16% in total RV shipments in January 2022 over the same period last year. RVIA also reports that ownership has increased over 62% in the last twenty years with a record 11.2 million RV owning households. Additionally, 9.6 million households intend to buy an RV within the next 5 years.
Alliant continues to look for opportunities to offer RV loans to credit unions looking to be consistent buyers in pools starting at $10 million.
About Alliant Credit Union (IL)
Alliant Credit Union is a not-for-profit financial cooperative with more than 850,000 members and nearly $19 billion in assets. Alliant was named one of CNBC's Top Credit Unions for 2023 and one of Money.com's Best Banks for America. Headquartered in Chicago and founded in 1935, Alliant is the largest credit union in Illinois and one of the largest credit unions in the United States. As an all-digital credit union, Alliant's mission is to provide members with a tech-forward banking experience coupled with consistent, superior financial value while simplifying and enabling how people save, borrow and pay.
