5 Charts on the Growth of Loan Modifications among Credit Unions

Starting with the September 30, 2008 call report, credit unions were required to report their loan modification efforts. The data show that not all credit unions are reporting modifications and delinquency the same way but it does point to a growing challenge facing the industry. Here’s a brief look at the numbers in 5 easy-to-understand charts.

 
 
Starting with the September 30, 2008 call report, credit unions were required to report their loan modification efforts. The data show that not all credit unions are reporting modifications and delinquency the same way but it does point to a growing challenge facing the industry. Here’s a brief look at the numbers in 5 easy-to-understand charts.

Today, mortgage loans make up 53.9% of the total loan portfolio and over 68% of these loans are 1st mortgages.

Source: Callahan’s Peer-to-Peer Software

As of December 31, 2008, 670 credit unions report at least one real estate loan modification on their call report, up from 482 at September. Here’s how they break out:

  • 555 credit unions reported an active 1st mortgage modification up from 379 at 3Q
  • 382 credit unions reported an active “other” real estate loan up from 267 at 3Q


Source: Callahan’s Peer-to-Peer Software

As you can see, the majority of credit unions doing modifications have only a handful so far.

In addition, there will soon be the impact of souring loans that credit unions sold loans to Fannie or Freddie but retained servicing. As of year-end, credit unions serviced almost $68 billion in mortgages sold. Many of these loans may now qualify to be refinanced or modified under the Obama Administration’s Making Home Affordable program.

Source: Callahan’s Peer-to-Peer Software

 

 

 

April 13, 2009


Comments

 
 
 

No comments have been posted yet. Be the first one.