Credit Unions Gaining Mortgage Market Share from Les and Elaine

Elaine Golden Gealer, Brentwood condos, Brentwood townhomes, Brentwood real estate, Brentwood new construction, Brentwood condominiums, Westwood condos, Westwood townhomes, Westwood real estate, Westwood new construction, Westwood condominiums, Westchester condos, Westchester townhomes, Westchester real estate, Westchester construction, Westchester condominiums, Toluca Lake condos, Toluca Lake townhomes, Toluca Lake real estate, Toluca Lake construction, Toluca Lake condominiums, North Hollywood condos, North Hollywood townhomes, North Hollywood real estate, North Hollywood new construction, North Hollywood condominiums, Sherman Oaks condos, Sherman Oaks townhomes, Sherman Oaks real estate, Sherman Oaks new construction, Sherman Oaks condominiums, Encino condos, Encino townhomes, Encino real estate, Encino new construction, Encino condominiums, Beverly Hills condos, Beverly Hills townhomes, Beverly Hills real estate, Beverly Hills new construction, Beverly Hills condominiums, West Los Angeles condos, West Los Angeles townhomes, West Los Angeles real estate, West Los Angeles new construction, West Los Angeles condominiums, West Hollywood condos, West Hollywood townhomes, West Hollywood real estate, West Hollywood new construction, West Hollywood condominiums, Santa Monica condos, Santa Monica townhomes, Santa Monica, real estate, Santa Monica new construction, Santa Monica condominiums, San Fernando Valley condos, San Fernando Valley townhomes, San Fernando Valley real estate, San Fernando Valley new construction, San Fernando Valley condominiumsCredit unions are gaining a greater share of the market for both home mortgages and auto loans according to a new study just released by TransUnion.  The credit reporting company says credit unions’ share of mortgage originations has risen from 7 percent in the first quarter of 2015 to 11 percent in the first quarter of this year.

During a survey of 90 credit union executives 60 percent stated that the number of mortgage originations they have provided to their members has grown over that two year period and ranked mortgages as a prime focus and growth areas for their businesses.

Further, TransUnion found that credit unions had suffered less and staged a quicker recovery from the severe downturn in mortgage originations between 2012 and last year. While credit unions saw a drop of 24 percent in their originations during that period, the rest of the market fell by 48 percent.  Over the last year credit union originations have increased 35 percent while the rest of the market is up 15 percent.

Nidhi Verma, director of research and consulting in TransUnion’s financial services business unit said, “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 percent growth in non-prime mortgage originations in Q1 2015 while the rest of the industry grew at only 4 percent.

“As the U.S. economy continues to recover, non-prime mortgage originations are growing for both credit unions and the rest of the industry,” said Verma. “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.”

Auto loans have also grown in importance at credit unions.  From Q1 2014 to Q1 2015 they had a 7.4 percent increase in new auto loans while the rest of the industry saw a 2.1 percent bump.  Subprime constituted 12.5 percent of their new loan originations in Q1 2015 slightly lower than a year earlier.

Elaine                                                     

DRE #00598428

Senior Director, Coldwell Banker New Homes Division

With over 200 condominium, townhome and loft projects successfully marketed

310.453.1965 Cell: 310.633.4742  Fax: 310.756.1233

elaine@elaine360.com

“Fewer properties for sale with such remarkably low interest rates make it a great time to sell but a more difficult time to buy”

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