#2394: Alliant Credit Union Shares How They Traded $64.5 Million in Recreational Vehicle Loans in 2020...
Recreational vehicle (RV) and camping trailer sales have generally been a solid business over the years. But in 2020, this industry launched like a Saturn 5 rocket to the moon -- and shows no signs of slowing down in 2021. In fact, RV Industry Association is projecting that RV shipments will climb nearly 20% in 2021, eclipsing 500,000 units. This colossal increase obviously means good business for RV dealerships, but it also means there's ample opportunity for credit union lending.
Case in point: Alliant Credit Union recently announced that it traded $64.5 million of its recreational vehicle loans to its partner credit unions in 2020. The sales helped provide these other financial institutions 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. Alliant's RV loan portfolio currently stands at approximately $1.3 billion with over $580 million originated in 2020 alone.
To get an inside look at how this business model works and how Alliant has benefited -- as well as other credit unions, we invited Charles Krawitz, Vice President of Commercial Real Estate Lending and Loan Trading at Alliant Credit Union. We discussed how robust this business sector is right now, why this is happening, why more credit unions aren't doing this, and advice for others looking to participate in the RV loan marketplace.
Yet another creative credit union success story. Check it out and let us know your thoughts.
Mike Lawson, Host
Married to a beautiful and wonderful wife, raising 5 kiddos (including twins!), enjoy helping others tell their stories, and love surfing SoCal waves. Keep it simple.