HELOCs, HMDA, And Home Buying After Hours

Five can't-miss data points featured this week on CreditUnions.com.

 
 

This week, CreditUnions.com looks at HELOCs, HMDA, and Home Buying After Hours.

Here are five data points you can't miss:

100%

In 2014, Northwest Community Credit Union developed its Home Equity Rewards Visa, it recognized it needed to differentiate the HELOC from competitors in the areas of functionality, benefits, and risk assessment.

By this time, housing values in Oregon and southwest Washington had rebounded, and consumer demand for access to home equity had improved substantially. NWCU’s members wanted quick and easy access to their newly found home equity for uses most likely put off during the several years of a tough economy.

Northwest Community Credit Union’s home equity loan includes a reformulated and expanded LTV criteria matrix, allowing well-qualified borrowers to leverage up to 100% of their current equity. Additionally, the credit union has lowered minimum payment requirements to 1% of the current balance, allowing for more affordable payments, and eliminated cash advance fees to encourage additional card swipes for larger ticket items. 

To see how NWCU created a home equity product that offers members the last home loan for which they'll ever need to apply, read "The House That Plastic Built."

14.3 Million

The Home Mortgage Disclosure Act (HMDA) was enacted by Congress in 1975 to mitigate concerns about perceived credit shortages throughout the United States, and requires most lending institutions (credit unions, banks, savings associations, and other mortgage lending institutions) to report mortgage loan data to the public on an annual basis.

In 2015, 6,790 institutions reported over 14.3 million HMDA loan records. Among the 2,000 credit unions that reported mortgage data, we identified the top ten in total mortgage originations. Find out which institutions made the list in "Credit Union Leaders In Total Mortgage Originations."

80 Attendees

Inspired by a similar program run by a realtor in Chicago, Altra Federal Credit Union hosted its first Home Buying After Hours program in the spring of 2014 for its principal market of La Crosse, WI.

The event — which more closely resembles a mixer — is one part educational, one part social. For roughly 90 minutes, members and potential members eat, drink, and wander an event space that contains booths housing experts who control or operate some part of the local home-buying process. On their own time, attendees have the opportunity to converse with realtors, appraisers, home inspectors, title company representatives, builders, and insurance representatives who provide attendees helpful tips on home buying and answer questions.

Altra’s first After Hours event exceeded the institution’s expectations. The event drew 80 attendees, a favorable outcome compared with its more traditional first-time homebuyer seminars that garnered almost no attendance.

Learn more about the event in "Turn Home-Buying Education Into A Reason To Celebrate."

3.8%

That's the annual growth rate of credit union members at second quarter 2016, according to data from Callahan & Associates, the fastest second quarter rate since 2000.

But credit unions head into fall planning season with momentum in other key areas as well, as loan and share growth are at or above the pace recorded one year ago, continuing a remarkable period for the industry. Since the Great Recession, credit unions are growing their balance sheet at more than double the rate of banks. And the balance sheet remains strong with solid capital, loss reserves, and asset quality.

As credit unions develop their plans for 2017 and beyond, they are focusing on how to continue the momentum the industry has gained since the recession. Opportunities abound in products, services, delivery channels, geographic areas, and SEG partnerships.

See how credit unions can navigate the good news in "Credit Unions Face The Challenge Of Too Many Opportunities."

12

Of the 1,124 credit unions in the $20 million to $50 million asset peer group, only 12 returned more on assets than Pacific Northwest Ironworkers Federal Credit Union's 2.10% at second quarter 2016.

To see how the small Oregon-Washington credit union uses internal efficiencies and external outreach to hit new heights, read "How Pacific Northwest Ironworkers Restored Its Net Worth And Built Member Value."

Happy Reading!

 
 

Oct. 24, 2016


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