Cleveland, Ohio-based KeyBank in November will stop making retail loans at the RV dealership level while also exiting the commercial loan market for RVs and boats.
Dealers were told of KeyBank’s exit from the RV and boat markets in a letter Thursday (Sept. 25) from Grant H. Skeens, president and CEO of KeyBank’s Key Recreation Lending division.
“KeyBank continually reviews its business mix and opportunities and has made a difficult decision to exit the retail and commercial recreation lending business,” Skeens said in the letter.
Skeens said that KeyBank will continue to take retail loan applications until Oct. 27, and inform “floorplan borrowers regarding the status of their loans” in individual letters.
The last day KeyBank will make retail loans is Nov. 14, Skeen said, although the company will continue to service the loans in its portfolio.
In a press release, KeyBank said it would continue to make RV loans directly to customers in 13 states where it has branches.
Ironically, the announcement came during the Recreation Vehicle Dealers Association (RVDA) Convention/Expo in Las Vegas. KeyBank employees closed their booth in Las Vegas on Thursday and left, according to RVDA.
“We also know that some dealers here at the convention immediately contacted the other floorplan lenders at their booths,” said Phil Ingrassia, RVIA vice president for communications.
Ingrassia said RVDA has not had any formal communications from KeyBank about the decision.
Questions, Skeen said, should be directed to KeyBank’s retail and marine help line at 888-539-6778.