CHICAGO–Alliant Credit Union is reporting its loan trading desk has started 2022 with $139.6 million of loan participations sold in the first two months of 2022, primarily consisting of recreational vehicle (RV) loans.
Alliant began financing RVs for members in 2008, and in 2013 expanded into indirect channels focusing on larger franchise dealerships. Alliant said its current 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,” the credit union said. “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 specialty lending sector.”
Alliant added that year-to-date sales have “provided other financial institutions the opportunity to gain access to a high-performing asset class,” while furthering its lending objectives.
The ’Appeal’ of RV Loans
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, in a statement. “Through loan sales, we are able to manage concentration risk while providing attractive opportunities to other credit unions. It is a win-win.”
According to Alliant, the RV market is “booming with even more room to grow,” adding that the best year on record for RV sales was 2021, with just over 600,000 shipments.
The credit union stated the RV Industry Association (RVIA) reported an increase of 16% in total RV shipments in January 2022 over the same period last year, that there is a record 11.2 million RV owning households, and that surveys show 9.6 million households intend to buy an RV within the next five years.
The $15-billion Alliant further noted it continues to look for opportunities to offer RV loans to credit unions looking to be consistent buyers in pools starting at $10 million.
Don’t Forget to Check the Spam Folder!
Don’t forget to check your Spam/Junk email folder if you didn’t receive your free, popular and daily CUToday.info news headlines on Monday.
And if you haven’t yet signed up for the new email solution on which CUToday.info has partnered with ResponseGenius, you can do so here. Signing up requires less than one minute of your time.
CUToday.info has received very positive response from readers following the move to an improved provider of the daily headlines, but many also noted they did need to go to their Spam/Junk folder and mark it as safe.
The new email solution has not only improved every reader’s delivery experience, but it also features a fresh, new format that is easy to read, especially on mobile devices.
Please note and/or make your IT department or email administrator aware the emails will be coming from the domains CUTodayinfo.com and CUTodayinfoReply.com.