Credit Unions Snag A Greater Share Of Mortgage Applications

The credit union industry posted higher market share levels by applications and funded loans in 2010 compared with 2009.


Credit unions’ housing finance activity had several growth areas in 2010, including in the number of overall loan applications and the number of funded loans, according to data from the Federal Financial Institutions Examination Council.

The percentage of loans that credit unions sold to the secondary market increased slightly and jumbo loans, or loans that are more than $417,000, accounted for a greater percentage of credit unions' total mortgage loans. Jumbo loans accounted for 3.4% of credit unions' first lien mortgages on a 1-4 family residential owner-occupied home in 2010, up from 2.4% in 2009, according to the FFIEC data.

Each year, financial institutions that grant mortgages report on those mortgage loans that were applied for and the resulting action, whether it was an approval or denial, whether the loan was funded or not, and whether the funded loan was later sold. The disclosures are required by the Home Mortgage Disclosure Act, which requires filings from mortgage-granting institutions with more than $40 million in assets and with an office or branch in a Metropolitan Statistical Area (MSA).

The federal government estimates that it captures 80% of lending activity. Despite the gaps, which are mostly in rural areas, the trends are in-line with figures calculated from depository-institution regulatory filings and estimates from the Mortgage Bankers’ Association.

The slideshow below highlights specific areas of credit union activity in housing finance. The vast majority of ratios are for first mortgages on owner-occupied, 1-4 family dwellings. The phrase “credit union” also includes credit union service organizations (CUSOs) that also file.

For a copy of this presentation or for more information about Mortgage Analyzer, please contact Callahan & Associates' director of industry analysis, Lydia Cole at or 800-446-7453.