Foreclosures have once again made headlines with the revelation that many servicers were not reviewing their documents properly. Although credit unions’ are smaller in size when compared to these larger lenders, it looks like we have an advantage when it comes to helping homeowners. Before the government launched its modification programs, credit unions were already helping members stay in their homes by modifying loans. Today, that is still the case.
Total modified mortgage balances outstanding more than doubled from last June, rising to $7.7 billion at mid-year 2010. More than 86% of these were first mortgages. Delinquency rates for both first mortgage modifications and other real estate modifications fell again in the second quarter to 20.4% and 21.0% respectively. However, part of this decline is the result of more aggressive charge-off rates. The net charge-off rate for first mortgages remained below 0.50%, while other real estate charge-offs jumped to 2.58% at June 30.
Source: Callahan's Peer-to-Peer software
Below is a list of the 20 credit unions with the largest number of modifications in their portfolios. By aggressively helping members refinance their mortgages into more manageable payments, these credit unions are demonstrating how credit unions are different, not only design but also in action.
Leaders in Outstanding Modified Mortgages
Data as of June 30, 2010
|
Rk
|
Credit Union
|
St
|
Modified 1st Mtg & Other RE Loans
|
1st Mtg Modifieds*
|
Other RE Modifieds**
|
Modifieds as a % of Total Outstanding RE Loans
|
Total Assets
|
|
1
|
STATE EMPLOYEES
|
NC
|
$649,597,897
|
$649,597,897
|
$0
|
5.64%
|
$21,038,409,108
|
|
2
|
NAVY
|
VA
|
$353,002,219
|
$246,323,532
|
$106,678,687
|
2.04%
|
$41,481,026,989
|
|
3
|
KINECTA
|
CA
|
$161,730,161
|
$161,730,161
|
$0
|
6.53%
|
$3,503,351,845
|
|
4
|
SAN DIEGO COUNTY
|
CA
|
$150,953,557
|
$137,135,001
|
$13,818,556
|
5.67%
|
$4,980,724,589
|
|
5
|
EVANGELICAL CHRISTIAN
|
CA
|
$146,562,345
|
$137,744,161
|
$8,818,184
|
14.96%
|
$1,215,635,352
|
|
6
|
BECU
|
WA
|
$140,616,398
|
$73,437,439
|
$67,178,959
|
3.33%
|
$8,956,948,732
|
|
7
|
PENTAGON
|
VA
|
$140,475,499
|
$118,640,476
|
$21,835,023
|
1.58%
|
$14,325,565,072
|
|
8
|
PATELCO
|
CA
|
$115,458,016
|
$106,714,854
|
$8,743,162
|
8.10%
|
$3,649,245,223
|
|
9
|
DESERT SCHOOLS
|
AZ
|
$111,783,993
|
$87,118,707
|
$24,665,286
|
8.86%
|
$2,966,034,424
|
|
10
|
AFFINITY
|
NJ
|
$111,032,892
|
$89,957,175
|
$21,075,717
|
8.50%
|
$1,984,318,373
|
|
11
|
SPACE COAST
|
FL
|
$108,319,457
|
$102,304,279
|
$6,015,178
|
8.67%
|
$3,113,846,775
|
|
12
|
DIGITAL
|
MA
|
$105,579,653
|
$89,111,663
|
$16,467,990
|
4.75%
|
$3,652,290,209
|
|
13
|
SUNCOAST SCHOOLS
|
FL
|
$100,176,231
|
$85,389,390
|
$14,786,841
|
4.30%
|
$5,246,705,710
|
|
14
|
AMERICA FIRST
|
UT
|
$93,572,842
|
$86,671,914
|
$6,900,928
|
7.32%
|
$5,018,170,497
|
|
15
|
SCHOOLSFIRST
|
CA
|
$92,651,811
|
$82,451,062
|
$10,200,749
|
3.14%
|
$8,434,124,764
|
|
16
|
GTE
|
FL
|
$89,860,666
|
$74,758,554
|
$15,102,112
|
12.65%
|
$1,503,587,026
|
|
17
|
THE GOLDEN 1
|
CA
|
$84,183,018
|
$76,814,171
|
$7,368,847
|
3.50%
|
$7,242,579,026
|
|
18
|
WESCOM
|
CA
|
$77,699,175
|
$75,599,960
|
$2,099,215
|
5.89%
|
$2,813,630,785
|
|
19
|
REDWOOD
|
CA
|
$77,194,276
|
$62,445,576
|
$14,748,700
|
10.15%
|
$1,700,169,619
|
|
20
|
NORTH ISLAND FINANCIAL
|
CA
|
$76,245,281
|
$71,234,007
|
$5,011,274
|
11.80%
|
$1,371,861,167
|