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.