CHICAGO – Alliant Credit Union is reporting it sold $64.5 million of recreational vehicle (RV) loans to other credit unions during 2020.
The sales, Alliant CU said, helped provide the purchasing CUs with the opportunity to gain access to a high-performing asset class while furthering Alliant’s lending capacity.
The sales averaged $9 million per pool across seven transactions, ACU said.
“As an asset class, RV loans presently outperform auto on a risk adjusted return basis, yet many credit unions are not positioned to offer this type of financing,” said Charles Krawitz, VP-commercial real estate lending and loan trading at Alliant Credit Union. “Through loan sales, we can generate non-interest income while providing attractive loan participations to other credit unions. It is a win-win.”
According to Alliant Credit Union, the “rising popularity of RV travel represents a growing opportunity for credit unions. The RV Industry Association projects RV shipments will climb nearly 20% in 2021, eclipsing 500,000 units.”
Alliant said it began financing RVs for members in 2008, and in 2013 expanded into indirect channels focusing on larger franchise dealerships. Its RV loan portfolio currently stands at approximately $1.3 billion with over $580 million originated in 2020 alone. Alliant CU said it continues to look for opportunities to sell loans to other credit unions, and plans to offer pools of loans starting at $5 million to credit unions that have an “appetite for an ongoing partnership.”
One CU Reports Success
In its statement, Alliant cited First Peoples Community FCU as among those CUs that have purchased loan participations as part of its RV loan program.
“First Peoples Community Federal Credit Union has been pleased to partner with Alliant Credit Union for RV participations over the last several years. Alliant has made this process very simple for us,” said Lynn Stuart, VP/credit manager at FPCFCU. “We have been impressed with their close attention to detail, due diligence and efficiency. From the moment we express an interest in a participation, we can receive a thorough proposal and be wrapped up in just a matter of days.”
In addition to RV loans, Alliant Credit Union said it also indirect auto, commercial and personal term loans to other credit unions in 2020.