Relationship lending gives credit unions edge

Mortgage production approached $2.0 trillion at year-end 2018 and credit unions accounted for $142.2 billion of that total. This data was derived from the recently released Home Mortgage Disclosure Act (HMDA). The balances include closed-end purchases, refinances, and home improvement loans, as well as open-end lines of credit – a new category mandated by HMDA […]

Mortgage production approached $2.0 trillion at year-end 2018 and credit unions accounted for $142.2 billion of that total. This data was derived from the recently released Home Mortgage Disclosure Act (HMDA). The balances include closed-end purchases, refinances, and home improvement loans, as well as open-end lines of credit – a new category mandated by HMDA for 2018.

Banks and HUD lenders (mortgage finance companies) held 47.2% and 45.6% of nationwide loan origination balances, respectively. While credit unions originated 7.1% of mortgage origination volume, they captured 12.3% of the market when looking at the total number of loans, showcasing the credit union difference in supporting local members.

As borrowers locked in lower rates throughout last year’s rising-rate environment, purchases made up 61.8% of all mortgages originated in 2018 – over $1.2 trillion. Among credit unions, purchases made up a smaller portion of total loans (51.9%). Credit unions showed strength in the “relationship-based” lending categories of refinances, home improvement, and “other,” comprising 31.6%, 8.7%, and 7.7% of their origination volume, respectively, says the analysis, compiled by Callahan & Associates.

Additional data collected during the 2018 HMDA data cycle indicates whether a loan went to purchase a principal residence, secondary residence, or investment property. Principal residence loans made up 79.0% of the national total, with credit unions originating almost 92% of their mortgages for primary residences.

LEVERAGE partner LendKey provides credit unions access to prime home improvement loans. Learn more here.

Written by
admin
View all articles

About Us

The League of Southeastern Credit Unions & Affiliates represents 342 credit unions in Alabama, Florida and Georgia, with a combined total of $118.63 billion in assets and more than 10.1 million members. LSCU & Affiliates provides legislative and regulatory advocacy; education and training; cooperative initiatives (including financial education outreach); public messaging; information services; and business solutions.

LSCU Mission Statement

To create an environment that enables credit unions to grow and succeed.

LSCU Vision Statement

To be the trusted advocate and preferred source of information for credit unions.

If you need to reach us, e-mail communications@lscu.coop

Social Channels

Follow us on all major social media platforms.