Credit Unions Maintain Steady Mortgage Market Share

Credit unions maintained a 6.1 percent share of the mortgage market share in 2015, mostly unchanged from the previous year, according to Callahan & Associates’ analysis of the latest Home Mortgage Disclosure Act (HMDA). In comparison, non-depository financial institutions saw their share increase from 40.1 percent to 43 percent during the same period, while national banks and savings institutions saw their market share grow from 5.8 percent to 6.4 percent.

During 2015, the credit union share of the mortgage market reached double digits in nine states, most notably in Alaska with a 28.4 percent presence. Vermont’s credit unions had the greatest year-over-year growth in the mortgage market, rising 3.4 percentage points to 24 percent.

Among the federal loan programs, the credit union market share of FHA loans dropped by 20 basis points year-over-year to 0.9 percent, even though credit unions expanded their FHA originations 45.5 percent over the period. The credit union share of the VA loan market increased from 4.7 percent to 5.2 percent, while the total number of VA loans originated by credit unions grew by 45.4 percent, outpacing the financial services industry average of 30.8 percent growth.

“While credit unions did not see growth in market share, it is encouraging to see them maintain share in a growing market, while banks’ market share declined,” said Sam Taft, Callahan’s director of industry analysis “This could be due to consumers continuing to trust credit unions with their real estate financing needs and increasing visibility throughout the country of the value proposition credit unions offer.”