to drastically reduced interest rates, the year 2001 saw the highest
ever volume of mortgage activity in the United States--over $2 trillion
in originations. Seeing the wealth of opportunities available in
such a climate, many credit unions took advantage of the situation
and experienced remarkable outcomes. However, more commonly, credit
unions were not prepared to handle this change, and so, have been
less able to take advantage of these new circumstances. Callahan's
2002 Credit Union Mortgage Lending
Report: Strategies and Practices in a High Growth Environment
helps credit unions learn how to join the ranks of those credit
unions thriving in this new climate.
Most credit unions with more than $50 million in assets have at
least some of their assets in first mortgages. Two-thirds of these
credit unions hold more than ten percent of their assets in first
mortgage loans. Twenty-three percent of these credit unions hold
one to ten percent of their assets in first mortgages.