Mortgage Lending Fuels Record Loan Volume

During the second quarter of 2012, credit unions originated their highest-ever loan volume.

 
 

Credit unions reported $84.5 billion in loan originations for the quarter ending June 30. Combined with first quarter originations, activity through the first six months of 2012 totaled $157.0 billion. This shatters 2009’s standing record of $144.3 billion originated in the first six months of the year.

2Q12_FirstLook_YTDloanoriginations

During the major refinance wave that began in the first half of 2009, credit unions originated more than $55 billion in first mortgages. Credit unions originated more than $56 billion in first mortgages for the first six months of 2012. Year-to-date first mortgage origination volume equaled 35.8%, down slightly from 2009 when year-to-date first mortgage origination volume totaled 38.3%.

Credit unions accelerated the first mortgage lending wave that started during first quarter 2012. Year-to-date, credit unions originated $56.3 billion in first mortgages and captured 7.6% of the market. They held 7.8% of those mortgages on their books and sold slightly more than half to secondary markets for asset-liability management purposes. Fixed-rate first mortgages comprised 14.6% of the asset base for credit unions, a slight increase from the 14.4% posted in the first quarter but down from the 14.7% posted during second quarter 2011.

Mortgage lending drove strong volume; however, consumer loan originations also beat historical levels. Credit unions posted a 17% increase in consumer loan originations over 2011 levels, disbursing $85.5 billion in non-mortgage, non-business loans to members. The industry posted strong growth in used auto, new auto, and credit card loans, with new auto loans increasing 0.7% from June 2011 levels.

 

 

 

Aug. 14, 2012


Comments

 
 
 
  • Credit Unions have come along way - it seems like yesterday that we were struggling to attain a 2% market share! One question; if CU's are retaining 7.8% and selling just over 50% - who is getting the other 40%? If we are to be really successful we need to keep our business within the credit union family or sell to GSE's and keep the servicing relationship. Credit unions continue to feed too much business to banks and mortgage companies instead of working with other credit unions and CUSO's!
    Victor Petroni
     
     
     
  • Credit Unions have come along way - it seems like yesterday that we were struggling to attain a 2% market share! One question; if CU's are retaining 7.8% and selling just over 50% - who is getting the other 40%? If we are to be really successful we need to keep our business within the credit union family or sell to GSE's and keep the servicing relationship. Credit unions continue to feed too much business to banks and mortgage companies instead of working with other credit unions and CUSO's!
    Victor Petroni