NAPERVILLE, Ill. — Alloya Corporate Federal Credit Union is advancing its second multi-issuer auto loan asset-backed securitization, bringing together loans from Dort Financial Credit Union in Michigan, Gesa Credit Union in Washington and Liberty Federal Credit Union in Indiana in a transaction designed to expand access to capital markets.
The proposed offering, identified in federal securities filings as Alloya Auto Receivables Trust 2026-1, involves 11,461 motor vehicle loans and retail installment contracts, according to an independent accountants’ report filed with the Securities and Exchange Commission. The underlying loan data were measured as of July 31, 2026.
The report, prepared by KPMG LLP and filed with the SEC in October, identifies 5,160 receivables from Gesa, 4,026 from Dort Financial and 2,275 from Liberty Federal. J.P. Morgan Securities LLC is identified as the structuring agent. The report describes procedures performed on selected loan-data attributes; it does not constitute an audit opinion on the transaction or establish that the securities have been sold.
Alloya said its multi-issuer approach combines auto loans originated by separate credit unions into one securitization. Securities backed by the loan payments can then be marketed to investors, giving participating institutions another potential source of liquidity and allowing them to manage their balance sheets without relying solely on deposits or traditional borrowing, the corporate said.
Overcomes Barriers
According to Alloya’s description of its program, pooling loans helps credit unions overcome barriers that can make individual securitizations impractical, including minimum deal sizes, fixed issuance costs and operational complexity. The corporate says it provides advisory, structuring, execution and monitoring support.
The latest transaction follows Alloya’s first multi-issuer prime auto loan securitization, completed in July 2025 with Blaze Credit Union of Minnesota, Consumers Credit Union of Illinois and Interra Credit Union of Indiana. Alloya said at the time that investor demand exceeded the available securities by three to five times across the transaction’s tranches.
Proves Concept Can Work
“It has proved the concept can work, and we look forward to many future issuances from multiple credit unions throughout the United States,” Andrew Kohl, Alloya’s chief investment officer, said in a July 18, 2025, announcement about settlement of the first transaction.
Alloya has described the program as a repeatable way for credit unions to diversify funding sources and support continued member lending. The SEC documentation reviewed for the 2026 transaction identifies the participating institutions and loan counts but does not establish a final issuance amount, pricing or settlement date.
