Alliance Funding, the consumer finance division of Superior Bank, said Thursday that it had purchased $28.1 million in loans from high-LTV lender FirstPlus Financial Group.

The loans, which were purchased on a servicing-released basis, were in conformity with Superior's underwriting and documentary guidelines, have an average loan-to-value of 80%, and are similar to other wholesale loans Superior buys, the bank said.

On Oct. 15, FirstPlus and Coast to Coast Financial, Superior Bank's parent company, said they would form a strategic alliance. The Dallas-based finance company has been plagued by falling stock prices all year and by a lack of capital recently. Some sources speculated that the deal would not go through.

As part of the October deal, Superior is also expected to purchase FirstPlus' servicing department.

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