Credit Unions Gaining Ground with Buyers
Mortgage shoppers are increasingly turning to credit unions to get a mortgage, according to new research by TransUnion.
Credit unions' share of all mortgage originations has grown considerably over the last two years, from 7 percent in the first quarter of 2013 to 11 percent in the first quarter of 2015, according to TransUnion.
"Mortgage originations had declined substantially across the board in the last few years; however, the decline had been less dramatic for credit unions," says 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."
Credit unions saw 25 percent growth in non-prime mortgage originations in the first quarter of 2015 while the rest of the industry increased at 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."
Source: "TransUnion: Credit Unions Go Big in Mortgage Originations," HousingWire (Aug. 11, 2015)
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