Credit unions accounted for 7.1 percent of the nation’s total mortgage origination during 2018, according to a new data analysis
released by Callahan & Associates.
Last year’s mortgage production level approached $2 trillion and credit unions accounted for $142.2 billion of that total. In comparison, banks and mortgage finance companies accounted for 47.2 percent and 45.6 percent of nationwide loan origination balances, respectively.
During 2018, purchase loans made up 51.9 percent of credit union mortgage origination, followed by refinancing (31.6 percent), home improvement loans (8.7 percent) and “other” lending needs (7.7 percent). Credit unions originating almost 92 percent of their mortgages in 2018 for primary residences.
“As rates ease in the back half of 2019, credit unions are well-positioned to take advantage of shifting demand for these non-purchase loans,” said Sam Taft, assistant vice president of analytics and business development at Callahan & Associates. “With the new HMDA rules for open-end loans, more insight was provided for credit union real estate lending and a more complete picture was painted on how credit unions impact the mortgage industry. These loans are disproportionally weighted towards members with existing relationships, which is a credit union specialty.”