The credit union mortgage universe is a wide one, with originators spanning the gamut from some of the biggest originators in the country down to thousands too small to be counted.
The biggest CU mortgage lender in 2014, Navy Federal, made $8.3 billion in loans, making it one of the top 15 of all home loan lenders on the country that year. The smallest of 2,001 credit union originators measured by Home Mortgage Disclosure Act data analyzed by LendingPatterns™, Rapid City Telco of Rapid City, SD, made just $24,000 in mortgages, no doubt a second lien.
To gather all the HMDA data for credit unions can be easily done through LendingPatterns™, but you have to know what you’re doing. The subset for lenders insured by the National Credit Union Administration returns a sort of 1,997 lenders, but you have to know there is another category, CFPB lenders (Consumer Financial Protection Bureau) for lenders with more than $10 billion in assets. But here are only four CUs that big, so you can add their volumes on using a calculator.
But, aren’t there many thousands of credit unions, much more than 2,000? Yes, but only institutions with more than $43 million in assets have to report (that rises to $44 million this year), so thousands of credit unions, the smallest ones, don’t report.
Armed with this information it is possible to calculate that credit unions required to report under HMDA extended $83 billion in home loan finance during 2014, which was more than $20 billion less than in 2013. The top five credit unions made some $17 billion of the total.
That was $25 billion less than they made in 2013, when the same sort shows $108 billion in both first and second liens. That compares to a national falloff from $1.75 trillion in 2013 to $1.1 trillion last year, according to the Mortgage Bankers Association.
NCUA lenders granted 57 percent of the $121 billion in mortgages their members applied for in 2014 while denying 16.3 percent of this amount (the rest fit categories like applications withdrawn or incomplete).
NCUA credit union patterns definitely skew towards whites, with 70 per cent of origination dollars ($48 billion) going to whites. In the minority/ethnicity categories (for HMDA purposes Hispanic is counted as an ethnicity), Hispanic is the largest minority, at 6.2 percent, or $4.3 billion. Asian is just behind that, at 5.6 per cent, and then blacks at 2.9 percent. Native American and Native Hawaiian lending make up less than one percent combined.
The vast majority of NCUA lenders’ borrowers, 96.4 per cent, took out conventional (private) mortgages, with less than four per cent of volumes coming through government programs like the Federal Housing Administration, the Department of Veterans Affairs or the Farm Service Agency/Rural Housing Service.
Not many CU borrowers were looking for investment properties, just 7.8 per cent of customers going to non-owner occupied. More than 91 per cent of finance went to owners who occupied the premises. Loan purpose was split pretty evenly between purchasing homes (48 percent) and refinancing (45 percent). About seven percent went towards home improvement.
The income of borrowers skews to the high side, with just 3.2 percent of borrowers classified as low income, while a hefty 61.2 per cent are counted as high income. But a large majority, 81 per cent, were conforming mortgages (loans that conformed to the Fannie Mae/Freddie Mac limits of $417,000) versus 19 per cent that were jumbo mortgages (above the conforming limit).