Northeast States lead Nation in Mortgage Originations

First mortgage loans propelled credit union lending in 2002. Of all dollars loaned through the first three quarters of 2002, 25.8% were first mortgages. This increased the proportion of first mortgage loans in the total loan portfolio from 27.8% to 28.9%. (Since shorter-term loans like auto and unsecured credit card turnover more quickly, a 25% share of mortgage loans granted will impact the percentage of loans outstanding more than 25% over time as shorter-term loans are paid off while longer-term mortgage loans remain on the books.) This increase in concentration occurred even while credit unions sold $16.2 billion of these loans on the secondary market.

 
 

First mortgage loans propelled credit union lending in 2002. Of all dollars loaned through the first three quarters of 2002, 25.8% were first mortgages. This increased the proportion of first mortgage loans in the total loan portfolio from 27.8% to 28.9%. (Since shorter-term loans like auto and unsecured credit card turnover more quickly, a 25% share of mortgage loans granted will impact the percentage of loans outstanding more than 25% over time as shorter-term loans are paid off while longer-term mortgage loans remain on the books.) This increase in concentration occurred even while credit unions sold $16.2 billion of these loans on the secondary market.

The table below shows the concentration levels, both originations and outstanding, as well as first mortgage delinquency rates for the fifty states. The northeast seemed to have the most success generating first mortgage loans. The District of Columbia, Vermont and Massachusetts granted the highest percentage of first mortgage loans at 56.5%, 47.1% and 45.2% respectively, of total loans granted through the first nine months of 2002.

 

 

 

Jan. 13, 2003


Comments

 
 
 
  • Excellent information.
    Anonymous