Wednesday, September 23, 2015

2014 HMDA-Reporting CUs Accounted for More Than 9 Percent of Mortgages

The 2014 Home Mortgage Disclosure Act (HMDA) data show that credit unions continued to gain mortgage market share, as their mortgage share reached historic highs.

According to the HMDA data, there were 1,984 HMDA-reporting credit unions. However, most HMDA-filing credit unions (1,150 institutions) originated fewer than 100 mortgages in 2014.

These HMDA-filing credit unions reported having 909 thousand applications and 545 thousand originations in 2014. Credit unions accounted for a little over 9 percent of all mortgage originations.

The report notes that nearly 9 percent of conventional mortgages for home purchase were higher-priced loans by credit unions. The report points out that small banks and credit unions originate a disproportionately higher share of high-priced mortgage loans compared to other lenders.

In addition, the HMDA data showed that the percent of conventional mortgages held in portfolio at credit unions have declined over time. In 1995, credit unions held over 80 percent of such loans in portfolio. By 2014, it had fallen to 61 percent.

Check out here Tables 11, 13 and 14 for more information on mortgage lending by lender type.







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3 comments:

  1. AnonymousSeptember 23, 2015 at 8:03 AM

    Kuddos to Credit Unions and Community Banks for originating a disproportionate share of higher priced loans. What is not said, is these are non-conforming, non saleable loans which must be kept on the books for the terms. They are evidenced that these institutions are providing credit to borrowers in their community that national lenders will not. At some point, we should stop all the back and forth sniping between banks and CUs and start real discussions about creating a climate for both Mutual SBs and CUs to thrive.

    ReplyDelete
  2. AnonymousSeptember 23, 2015 at 8:35 AM

    What's the definition of high priced in the context of the hmda data?
    Mortgage balance?
    Rate?

    ReplyDelete
  3. Keith LeggettSeptember 25, 2015 at 9:37 AM

    Higher-priced first-lien loans is defined as those with an annual percentage rate (APR) of at least 1.5 percentage points above the average prime offer rate (APOR) for loans of a similar type (for example, a 30-year fixed-rate mortgage). The spread for junior-lien loans must be at least 3.5 percentage points for such loans to be considered higher priced.

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