4 States; 4 Realtor Associations; 4 Questions

Four state realtor associations talk about the housing market in some of the country’s most active regions for credit unions.

 
 

Credit unions have tripled their national share of the mortgage lending market with nearly 28% growth in first mortgages from 2008 to 2013, according to Callahan’s Peer-to-Peer analytics. The credit union difference is marked by local decision making, high responsiveness, and a commitment to relationship building.

“We’d be remiss if we didn’t give a shout-out to the major banks for being annoying to consumers and forcing people to seek out other alternatives,” Bob Dorsa, president of the American Credit Union Mortgage Association, told the New York Times at the end of 2012.

Here, realtor associations from four states with a large credit union presence — Pennsylvania, Texas, Michigan, and Florida — weigh in on the present and future of their real estate markets and offer advice as to how credit unions can reach out to local realtors.  

First up, Pennsylvania.


PENNSYLVANIA
BETTE MCTAMNEY, PRESIDENT, PENNSYLVANIA ASSOCIATION OF REALTORS

According to data from Callahan’s Peer-to-Peer and CoreLogic, Pennsylvania credit unions originated $1,297,147,017in first mortgages during the first half of 2013. That’s a 5.36% decrease from the first half of 2012. In total, Pennsylvania credit unions captured 5.04% of the first mortgage market share at midyear.

What is the current state of the real estate market in Pennsylvania?

BETTE MCTAMNEY: We’re seeing positive trends throughout most of the state. Closed sales were up 15% and new listings rose 12% in the third quarter of 2013 over the same quarter a year ago, based on MLS data reported to the Pennsylvania Association of Realtors. Median sale prices were up slightly with a 3% rise to $185,000 in the third quarter this year compared to the third quarter in 2012. Days on market continued to drop, down 14% to 80 days in the third quarter, compared to Q3 2012.

What is your outlook for the market in 2014 in terms of home prices and home sales?

BM:Members of our realtors association are optimistic that the housing market will maintain its gradual upward trend. Many markets throughout the state have reported fewer homes on the market and some are seeing more multiple offers on homes.  

How visible are credit unions as mortgage lenders in the market?

BM: We’re starting to see an increasing number of our clients using credit unions for their mortgages because credit unions are becoming more competitive. Making those local connections in their communities is important to be visible in the market.

How can credit unions work with more realtors in their area?

BM: Many of our local associations have affiliate memberships that would offer credit unions an opportunity to meet realtors in their communities and provide information about their mortgage products. Credit unions might also want to consider sponsoring events at the local or state levels to market their name and products to realtors.

Next up, Texas.


TEXAS
SHAD BOGANY, CHAIRMAN, TEXAS ASSOCIATION OF REALTORS

According to data from Callahan’s Peer-to-Peer and CoreLogic, Texas credit unions originated $2,420,611,387in first mortgages during the first half of 2013. That’s a 24.12% increase over the first half of 2012. In total, Texas credit unions captured 2.90% of the first mortgage market share at midyear.

What is the current state of the real estate market in Texas?

SHAD BOGANY: As we see from the Texas Association of Realtors’ Texas Quarterly Housing Report, the real estate market in Texas is very strong, with increases in both sales volume and median price every quarter for almost two years now.

What is your outlook for the market in 2014 in terms of home prices and home sales?


SB:We don’t make market predictions, but in thinking about the future of Texas, it’s important to know that Texas’ population is expected to continue to grow and the picture for employment looks positive. Now, we need to focus on ensuring Texas remains a great place to own a home by providing for our increased needs in transportation, water, and energy, which has been a focus of the Texas Association of Realtors.

How visible are credit unions as mortgage lenders in the market?

SB: Credit unions are gaining visibility as mortgage lenders based on the increased volume of mortgage loans for which they are responsible. Texas realtors encourage their clients to consider all options for home financing so they can make the choice that is a best fit for their personal goals.


How can credit unions work with more realtors in their area?

SB: Realtors are the trusted resource for consumers looking to buy and sell real estate, so, like any lender, I would advise credit unions get to know the realtors in their area.

Next up, Michigan.


MICHIGAN
CAROL S. GRIFFITH, PRESIDENT, MICHIGAN ASSOCIATION OF REALTORS

According to data from Callahan’s Peer-to-Peer and CoreLogic, Michigan credit unions originated $2,230,977,828in first mortgages during the first half of 2013. That’s a 21.07% increase over the first half of 2012. In total, Michigan credit unions captured 7.71% of the first mortgage market share at midyear.

What is the current state of the real estate market in Michigan?

CAROL GRIFFITH: The residents and realtors in Michigan are enjoying an active real estate market in 2013. Sales activity has increased this year and the number of distressed properties has declined. The number of active listings declined in some markets followed by an increase in buyers, which tends to put upward pressure on prices. In many areas and certain price ranges, homeowners are feeling an increase in their home equity. All in all, I think the residents of Michigan are feeling more positive about their jobs, home values, and the economy.

What is your outlook for the market in 2014 in terms of home prices and home sales?

CG:Mindful that moderate price increases promote stabilization and a sense of security, I believe the real estate market in 2014 will be stable with a moderate increase in prices due to supply and demand. With the decline in the number of foreclosures and short sales, our real estate values will continue to stabilize.

How visible are credit unions as mortgage lenders in the market?

CG: Credit unions are visible in our market and tend to be very good friends to the realtor family and clients. Personally, I have found many credit unions to be less restrictive with eligibility requirements. Many times this promotes faster servicing of the mortgage approval process. This is also a benefit if the client is local and the credit union approval board has familiarity with the client. There is a huge difference for all parties in terms of service.

How can credit unions work with more realtors in their area?

CG: Credit union personnel and employees should continue to build strong relationships with their local board of realtors. Get involved in the association to build relationships one on one. Realtor associations have affiliate memberships, so get involved and join them.

Next up, Florida.


FLORIDA
JOHN TUCCILLO, CHIEF ECONOMIST, FLORIDA REALTORS

According to data from Callahan’s Peer-to-Peer and CoreLogic, Florida credit unions originated $1,999,943,804 in first mortgages during the first half of 2013. That’s a 35.58% increase over the first half of 2012. In total, Florida credit unions captured 3.81% of the first mortgage market share at midyear.

What is the current state of the real estate market in Florida?

JOHN TUCCILLO: Florida has been recovering for a good bit of time. Let me give you a little background, we went for a big roller coaster ride starting in about 2003 and essentially bottomed out the beginning of 2009. For the two or three years following that, there wasn’t a lot going on. We stopped hemorrhaging and began to heal. The Florida market began to pick up in 2011, motivated by investor activity. We had a lot of large funds come in that made bulk purchases of relatively inexpensive homes with the idea they were going to rent them out or bring them to market standard and then rent them out. They needed to hang on to the property for seven to 10 years, and by that time they figured the market would come back — they would sell and make a return. From 2011 through 2012 and into 2013, we had a lot of investor activity, an awful lot of cash sales — we actually peaked at approximately 55-60% of the market being cash sales. We’re down below that now, but the investor activity put a spark back into the market that the market built on.

Right now the Florida real estate market is about what it was in 2004. Existing home sales have been increasing year-over-year anywhere between 12-16% month-to-month, year-over-year. Investors are beginning to slacken off and we’re seeing a drop in cash sales as prices have gone up and bottom lines aren’t looking as good. The price rise has picked people up and they’re now finding they have positive equity in their homes, which gives them more flexibility to refinance, sell, or whatever.

What is your outlook for the market in 2014 in terms of home prices and home sales?

JT:I think home sales will be up and prices will be up. I’m looking for values appreciating to somewhere in the 5-10% category. I’d say real value is going up 5-10% and home sales are up somewhere between 10-15%, which is a bit of a movement off where we are now. I think that’s partially because investor activity is beginning to wane a little, which will cause the market to level off. I still see us moving in a positive direction as vigorously as we were in 2012 and 2013.

How visible are credit unions as mortgage lenders in the market?

JT: One of the biggest issues in the market — one which I worry about down the line, especially with investors getting ready to sell, three, four, five, seven years, somewhere out there  — is availability of credit. Mortgage credit has become increasingly less accessible to the average family. We’re finding that potential owner-occupants are having a tough time accessing mortgage credit. Credit unions could be attractive as an option for the customers of realtors — potential buyers.

How can credit unions work with more realtors in their area?

JT: Get out there and make yourself known to the realtor population. If you’ve got money to lend, you’re gold. Getting involved with the local realtor association is a good place to start. Realtors have a lot of meetings with local associations and a lot of things like education classes, monthly meetings, and panels.

Next, Top 10 Credit Union Mortgage Originators leader table.


 

 

 

 

 

TOP 10 CREDIT UNION MORTGAGE ORIGINATORS
Data As of June 30, 2013
© Callahan & Associates | www.creditunions.com

  State Credit Union Total Assets 1st Mtg Origins
as of June 30, 2012
1st Mtg Origins
as of June 30, 2013
Growth in
1st Mtg Origins
 
1 MI Lake Michigan $2.9B $494,867,226 $668,686,828 35.12%  
2 FL GTE Financial $1.6B $189,108,628 $329,505,609 74.24%  
3 TX Randolph-Brooks $5.5B $263,828,429 $303,581,029 15.07%  
4 FL VyStar $4.9B $225,652,989 $301,177,456 33.47%  
5 PA Police And Fire $4.2B $223,367,053 $244,404,654 9.42%  
6 TX University $1.6B $170,442,018 $237,548,674 39.37%  
7 FL Space Coast $3.1B $101,957,837 $195,482,560 91.73%  
8 FL Suncoast Schools $5.5B $138,714,309 $177,634,213 28.06%  
9 PA Members 1st $2.4B $136,315,203 $154,690,769 13.48%  
10 TX TDECU $2.1B $112,017,383 $151,586,918 35.32%  


Generated by Callahan & Associates' Peer-to-Peer Analytics

 

 

 

Oct. 28, 2013


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