The Realities Of Real Estate

Key metrics illustrate the climate of real estate lending.


The mortgage business requires lenders to be aware of industry trends and opportunities. Data at mid-year 2010 provides insight into how credit unions are faring in the market. The four charts below incorporate data from all U.S. credit unions and illustrate several trends in the marketplace. In this discussion, we’ll provide a quick look at some of the salient statistics and offer examples of credit unions that are managing the new environment.

  • First mortgage originations totaled $31.4 billion in June 2010, giving credit unions a market share of 3.9%.
  • Sales to the secondary market tallied $27.8 billion.
  • The delinquency rate for first mortgages is 2.24%.
  • 28.1% of credit unions do not engage in mortgage lending.
  • 58.5% of credit unions that DO engage in mortgage lending hold those loans in portfolio.
  • 7.1% of credit unions portfolio and sell mortgages.
  • 6.3% of credit unions portfolio, sell, and service mortgages.

In sum, mortgage lending presents numerous opportunities for credit unions. Some are already capitalizing on the environment with fresh thinking and programs.

  • State Employees Credit Union is modifying mortgages to help borrowers in difficult situations. This strategy helps to keep delinquencies and adverse outcomes to a minimum. The credit union confronts problems as early as possible and works with members to develop constructive solutions.
  • CUSOs offer a viable method to boost a mortgage portfolio. Credit unions can increase their lending clout, reduce overhead, and manage the ever-evolving world of compliance.
  • Bethpage Federal Credit Union builds its healthy mortgage lending portfolio through products with manageable rates. It is just one example of how credit unions have filled the lending void that opened during the recession.

The statistics at mid-year 2010 highlight a mortgage lending market full of unrealized potential. Credit unions have identified the need and have used the cooperative spirit to turn homeowner hopes into reality.

Callahan & Associates' Real Estate Lending Metrics

Callahan & Associates' Mortgage Lending Activity

Click images to view graphs larger.

Source: Callahan's 2011 Credit Union Directory