Credit Unions See a Reduction in Service Income

After a strong 3rd Quarter, credit unions could see a drop in service income for the 4th Quarter. The source of this drop is still to be determined but some potential causes could be the settlement between retailers and Visa/MasterCard and also a reduction in real estate loan originations.

 
 

After a strong 3rd Quarter, credit unions could see a drop in service income for the 4th Quarter. The source of this drop is still to be determined but some potential causes could be the settlement between retailers and Visa/MasterCard and also a reduction in real estate loan originations.

In the 3rd quarter of 2003, service income was a key component of credit unions' total income. Debit interchange fees remained strong because the Visa/Mastercard settlement only took effect in August. Furthermore, fees associated with the high volume of loan originations more than compensated for any drop that may have occurred. This explains why service income made up such a large part of total income last quarter.

 

 

 

Feb. 9, 2004


Comments

 
 
 
  • nice grahic and easy to understand
    Anonymous
     
     
     
  • An interview with a credit union that retains servicing vs a cu that sells servcing would have been an inciteful value added addition to the article.
    Anonymous