E-Trade Consumer Finance Corp. has said it will keep $3.3 billion of recreational vehicle and boat loans on its books as whole loans, following the sale of its RV and boat lending to G.E. Consumer Finance last week.

E-Trade spokeswoman Tina Martineau, confirmed the company does not have plans to securitize any of the loans.

That decision effectively takes E-Trade out of the RV sector, as E-Trade's only securitization was a $300 million deal out of its RV and marine trust, ETRVM 2004-1, which priced last December via Lehman Brothers. E-Trade also issued two mortgage backed deals in 2001, one a nearly $1 billion ARM deal, the other a $600 million deal backed by 30-year mortgages. From 2002 through last year, the company has also issued $1 billion in ABS CDOs.

G.E. bought the E-Trade unit for $60 million in cash last week, and under the terms of the deal, E-Trade will retain the $3.3 billion in loans already originated by the unit, as well as any loans originated up until the deal is closed, which is expected to happen within 60 to 90 days. GE reportedly expects the acquisition to increase its RV and boat originations to $2 billion per year.

G.E. Consumer Finance did not return calls for comment.

(c) 2005 Asset Securitization Report and SourceMedia, Inc. All Rights Reserved.

http://www.asreport.com http://www.sourcemedia.com

Subscribe Now

Access to a full range of industry content, analysis and expert commentary.

30-Day Free Trial

No credit card required. Access coverage of the securitization marketplace, including breaking news updated throughout the day.