Engage in Loan Sales and Participations with our User-Friendly Transaction Service
As an industry-leading consultant, ALM First helps clients gain access to secondary markets and strives to build more efficiency and transparency in whole loan and loan participation trading. With our unique industry position and professional consulting expertise, we offer a comprehensive, turnkey solution for both parties, whether on the buy or sell side. From pricing and preparation to execution and closing, ALM First is a partner to count on throughout the transaction process.
Why ALM First: For a wide range of loan types, whether auto loans, residential mortgages, or commercial loans, our team offers direct market access, competitive pricing, analytics and consulting services.
- Direct network access: Improve market transparency through access to our network. Our large network of contacts allows a seller to access multiple avenues of execution. Using these resources, our price discovery process helps clients assess the value of a loan pool, and builds confidence in how a price is determined.
- Competitive pricing: Our fees are usually lower than broker/dealer commissions.
- Analytics and consulting: Access to loan analytics, including valuation and ROE analytics, allows clients to shed light on relative value, even if the loan pool is sourced outside of our network. Our consulting services help clients maximize deal value. We assist with credit and performance, data and organization, and other supporting functions so the buyer can bid with a clear understanding of value.
- For the Seller: Institutions needing liquidity can engage ALM First to gain access to the secondary market. The seller will provide data, and using our analytical systems, ALM First will provide price guidance based upon a range of ROEs and comparables from other loan sales.
- For the Buyer: For those on the buy side, ALM First will assist in pricing and facilitate introductions with potential sellers in advance of the purchase. The buyer can engage ALM First’s advisory team to analyze available pools, and ALM First will provide price guidance based upon an ROE calculator so the buyer can clearly understand the value of the pool under consideration.
What is ALM First’s role in the process?
ALM First’s objective is to offer a forum for mortgage, auto, commercial, and other asset sales and purchases for financial institutions. Our analytic services provide honest assessments of provided data pools that can be trusted in setting and accepting prices.
What information do you need to sell?
ALM First provides a detailed list of data requirements for potential loan sellers. Contact us for complete details.
What is the minimum size pool that I can sell or purchase?
ALM First does not have size restrictions. Rather, the minimum size is dependent upon the market. ALM First will work with the institution to present or find a loan pool that is beneficial to the institution given the current market.
Can I customize the loan package to my stipulations?
Yes – customization is in fact suggested. ALM First will work with the seller to condense the original loan pool in order to create a more valuable sale. The buyer can also counter-offer based on an adjusted pool.
How are losses estimated?
When available, ALM First looks at seller-specific static pool analyses to estimate losses used in an ROE framework. When static pool information is not available, ALM First looks at static pool data from other large auto originators to approximate losses. Either way, ALM First recommends that clients take ownership of the credit assumptions in the purchase process.
How long do transactions take?
Transactions typically take at least a month to complete depending on the buyers and sellers experience in loan transactions.
How is ALM First being compensated?
ALM First charges a specific basis point fee to the seller for connecting buyers with sellers.
How does one party (either the buyer or the seller) know that ALM First isn't favoring one party over the other?
ALM First provides detailed analytics to both the buyer and the seller to show the relative value of the pool. As a fee-based asset manager, ALM First uses the same analytics in the loan discovery process that it uses in its consulting services.
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Contact us today to allow ALM First to start working for you.
All investing is subject to risk, including the possible loss of the money you invest.
“ALM First” is a brand name for a financial services business conducted by ALM First Group, LLC (“ALM First”) through its wholly owned subsidiaries: ALM First Financial Advisors, LLC (“ALM First Financial Advisors”); ALM First Advisors, LLC (“ALM First Advisors”); and ALM First Analytics, LLC (“ALM First Analytics”). Investment advisory services are offered through ALM First Financial Advisors, an SEC registered investment adviser. Balance sheet advisory services are offered through ALM First Advisors. Financial reporting services, loan introduction services, and other special project services are offered through ALM First Analytics. Neither ALM First nor any of its subsidiaries provide legal, tax, or accounting advice.
INVESTMENT PRODUCTS ARE: • NOT FDIC INSURED • NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY • NOT A DEPOSIT OR OTHER OBLIGATION OF, OR GUARANTEED BY, ALM FIRST OR ANY OF ITS AFFILIATES • SUBJECT TO INVESTMENT RISKS, INCLUDING POSSIBLE LOSS OF THE PRINCIPAL AMOUNT INVESTED.