Mortgages have driven lending activity at credit unions over the
last 18-24 months. While credit unions are breaking industry records
in originations, they still hold only 2.5% of the entire origination
market. With credit unions holding a similar share of credit card
loans (3% of the market), they only hold significant market share
in non-revolving loans - but their sway there has been declining.
Non-revolving loans are one-time loans with regular payment schedules
that are not real estate. The bulk of these balances are from auto
lending. As the overall economy suffered, and credit unions had
to compete with 0% financing, they had trouble keeping pace with
other lending institutions.
Three years ago credit unions held 17.6% of all non-revolving loans.
Even though loan balances have increased every year, they have not
increased at the same rate as the entire market, and as such, credit
union market share has decreased every year. As of June 2003 credit
unions held 16.8% of non-revolving loans, significantly down, yet
still above their 6.4% share of financial institution assets.