Graph of the Week: CU Mortgage Lending Rises Double-Digits in a Down Market

 
 

The primary driver of outstanding loan growth at credit unions was the 11.5 percent growth in real estate loans, including 14.8 percent in first mortgages. First mortgage volume was up 16.9 percent across credit unions in 2008, an incredible result given the 27.9 percent decline nationally reported by the Mortgage Bankers Association. Credit unions' share of the U.S. first mortgage market reached an all-time high of 4.0 percent as a result of this activity. In addition, credit unions report over 10,000 modified mortgages for members at year-end.

Graph of the Week

 

 

 

March 9, 2009


Comments

 
 
 
  • The article is fine. It states what is. The problem is that mortgages were a lousy asset for a credit union's balance sheet before the current housing crisis and they are a worse one now. Locking in longterm assets at a multidecade low in interest rates is just asking for trouble. Credit Unions are setting themselves up for the same problem the thrifts had when interest rates went way up in the 1970's.
    Anonymous