Performance of the loan portfolio shows how credit unions are helping members and the economy.
Changes in the lending market illustrate that the effects of the recession are calming.
“The high tide of delinquency among homeowners has begun to recede,” the New York Times reported last week. As evidence, the article offers the latest findings from the Mortgage Bankers Association. According to the MBA, the percentage of homeowners behind on payments fell to 13.52% at the end of the third quarter, down from 14.42% at the end of the second.
Similar positive trends in the mortgage market exist for credit unions. State Employees Credit Union ($21.4B, Raleigh, NC) is using its Mortgage Assistance Program to stave off foreclosure for members. By offering extensions, refinancing, and modifications, the credit union has minimized foreclosures.
Members 1st Credit Union ($1.8B, Mechanicsburg, PA) is refinancing to help its members. One member is saving more than $500 per month by consolidating mortgages into one loan at 4.375%. Another is saving $432 per month by refinancing at a lower rate. The savings yielded educational opportunities and the ability to purchase a new car.
Member business lending is thriving at credit unions, too. Total MBL at credit unions increased to $30.5 billion, a 9.1% jump year-over-year. Not only has the portfolio increased, but the number of credit unions offering MBL is also on the uptick. In Virginia, the proof is in the data. Credit unions’ member business lending there has increased 30% or more in each of the past three years. The numbers show a commitment to keeping small businesses open.
These examples hammer on one point: Credit unions are making lending opportunities work for members, and the resultant strong performance is helping to propel the economy forward.