Real Estate Loans Continue to Drive Loan Balance Growth

Credit union loan growth continues to be driven by real estate business. Credit unions participating in Callahan's First Look program reported loan balance growth of 1.80% in the first three months of 2004, up from 1.67% during the same period in 2003.

 
 

Credit union loan growth continues to be driven by real estate business. Credit unions participating in Callahan's First Look program reported loan balance growth of 1.80% in the first three months of 2004, up from 1.67% during the same period in 2003. The first quarter is traditionally a sluggish period for loan balance increases with credit card balances being paid down after the holiday season and the winter months being slower than the rest of the year for large auto and home purchases.

First mortgage loan balances grew 2.80% in the first three months, surpassed only by growth in other real estate balances of 4.80% during the same period. The 406 credit unions that have submitted their call reports to First Look hold $145 billion in assets, representing approximately 25% of the industry.

These credit unions actually originated 20% less volume than they did last year at the same point, but sold a smaller percentage of originations to the secondary market helping to boost the total dollars of real estate loans outstanding.

The pie charts below show the composition of the First Look credit unions' First Mortgage and Other Real Estate Loan Balances. Credit unions are now required to report more detail on their real estate business providing a much more in-depth view of the industry's overall portfolio.

 

 

 

May 3, 2004


Comments

 
 
 
  • I am curious about mortgage loan growth with the current low interest rates and the risk involved with 15 -30 year notes. Why are some credit unions continue are able to add them?
    Anonymous