Home Sweet Loan

First mortgage activity bolstered the balance sheet as modifications kept recession-weathered members in their homes.


According to Callahan’s Peer-to-Peer software, the credit union system originated $69 billion in loans during fourth quarter 2010; the highest fourth quarter origination level in the industry’s history. As the months progressed, the industry made great strides in bringing cooperative options to the forefront of homebuyer’s minds, and increased annual first mortgage market share to 5.4% over 2009’s 4.5%.

Many cooperatives reported to Callahan & Associates that their re-fi levels as a percentage of originations frequently exceeded the Mortgage Bankers Association estimate of 70% re-fi's for total market activity. 

Re-fi activity greatly reduced the average debt load for working American families and stimulated loan growth in other areas as members saved on borrowing costs for their homes. But, as part of their continuing public policy, credit unions also offered modifications and other assitance to keep those most dramatically affected by the recession in their homes.

Mortgages modification greatly increased from year end 2009 in both firsts and other real estate categories. Firsts modified in 4Q grew to roughly $7.7 billion annualy from $5.3 billion, and other real estate modified grew to $1.2 billion from $909 million in the same period.