The appetite for credit unions to provide mortgage loans appears to be greater than other financial institutions, according to TransUnion research
By Jeff Sorg, OnlineEd Blog
(TransUnion) – The appetite for credit unions to provide mortgage loans appears to be greater than other financial institutions, according to TransUnion (NYSE: TRU) research. Credit unions’ share of all mortgage originations has increased from 7% in Q1 2013 to 11% in Q1 2015.
The research was corroborated by a survey of 90 credit union executives, with nearly six in 10 respondents stating the number of mortgage originations provided to their members has grown over the past two years.
“Mortgage originations had declined substantially across the board in the last few years; however, the decline had been less dramatic for credit unions,” said Nidhi Verma, director of research and consulting in TransUnion’s financial services business unit. “In the last year alone, it appears significantly more credit union executives are seeing growth in this area. Credit unions are becoming bigger players in the mortgage loan market, something that may serve them well in the future as the housing market continues to recover.”
TransUnion also found that credit unions experienced 25% growth in non-prime mortgage originations in Q1 2015 while the rest of the industry grew at 4%.
“As the U.S. economy continues to recover, non-prime mortgage originations are growing for both credit unions and the rest of the industry. Historically, credit unions have seen lower delinquency rates than the rest of the industry, and their focus on membership expansion makes them well-positioned to take advantage of this growth.” Nidhi Verma, director of research and consulting in TransUnion’s financial services business unit.
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