Will Credit Unions Take the Lead in Reshaping the Secondary Mortgage Market?

Record first mortgage volume is the driver of credit union lending activity through the first half of 2009. Can credit unions sustain the momentum as this critical lending segment becomes a larger part of their business?

 
 

Record first mortgage volume is the driver of credit union lending activity through the first half of 2009. The results indicate continued momentum in a market in which credit unions have more than doubled their share in just two years. The 5.2% market share through June puts the industry on track to meet the Credit Union Housing RoundTable’s goal of raising its share from 2% to 10% in 10 years.

Can credit unions sustain the momentum as this critical lending segment becomes a larger part of their business?  The Fourth Annual Meeting of the CU Housing RoundTable, September 29 and 30 at Caesars Palace in Las Vegas, NV, will address key issues on this topic. The RoundTable's sole purpose is to further strategic thought and action in mortgage lending. The meeting immediately precedes this fall's ACUMA Meeting, which begins on the 30th.

Two issues will be the focus of the meeting:

  • The secondary market is an essential component of mortgage lending, but the dramatic changes over the past year have created uncertainties. Can credit unions take the lead in shaping a secondary market that meets their needs and maximizes member value? Tuesday’s discussion will focus on credit union long-term liquidity needs and different ways to satisfy them.  This topic was discussed in last year's white paper, Re-imagine Your Balance Sheet.
  • Despite the housing crisis, reverse mortgage loan volume reached a new high in 2008. Wednesday’s discussion will be kicked off by Eric Bachman, CEO and Founder of Golden Gateway Financial, who will be speaking on the importance of reverse mortgage loans, member demographics and the correct ways to help members determine if a reverse mortgage is right for their situation.  A working group session on the topic will follow with the objective of creating strategies credit unions can quickly enact to serve senior members. Attendees will also be among the first to receive copies of the second edition of the RoundTable's Reverse Mortgage white paper.

The past two years have been a period of unimagined challenges in the housing market. Mortgage lending, however, has been a bright spot for credit unions. Market awareness that credit unions are trustworthy, reliable lenders is increasing. Strategically and financially housing finance is providing our industry a way forward. 

 

 

 

Sept. 10, 2009


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