CHICAGO–Alliant Credit Union is reporting its loan trading desk sold $268 million in commercial and consumer loan participations during 2021 in 25 transactions, up from $127 million in 2020.
On the purchase side, Alliant said it 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, in a statement. “As we deepen our national network of relationships, we uncover additional loan trading opportunities to continue our success.”
‘Broad Footprint’
The $15-billion Alliant said it has established a “broad footprint” for its loan trading desk, with trading partners encompassing fintech lenders and credit unions throughout the United States.
As an example, it cited Washington State Employees Credit Union (WSECU), which acquired a student housing loan participation from Alliant.
“The Alliant team has been an excellent partner in developing and executing deals,” said Wayne Kawakami, VP-finance at WSECU. “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.”
$715 Million in Purchases
According to Alliant, on the acquisitions side, its loan trading desk purchased $715 million in loan participations across 14 transactions. ACU said 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, it reported. Of the 25 transactions, 18 involved commercial property mortgages. The remaining seven pools sold comprised consumer RV loans, which it called “an increasingly active sector” for its loan trading desk.
Alliant CU further reported its commercial real estate mortgage loan sales were primarily loans for multifamily properties, including student housing, often with complex structures. For example, Alliant said it 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 in Austin by a Delaware Statutory Trust (DST). The loan structure included an interest-only period and flexible exit options allow for the inclusion of a condominium component.