Credit Unions Gain Mortgage Market Share

As the quarterly volume of residential loan production sank, credit unions successfully captured a bigger piece of the U.S. mortgage market. Single-family loan originations during the period that began on Jan. 1, 2017, and concluded on March 31 amounted to an estimated $353 billion.

The volume of mortgages made included activity from federally insured banks, federally regulated credit unions and state-licensed non-banks. Home lending production plunged from the preceding three-month period, when there were an estimated $517 billion in mortgage originations. But residential loan volume was little changed from the $354 billion in production during the first-quarter 2016.

First-quarter 2017 mortgage originations included $152 billion in loans originated by banks based on data provided to Mortgage Daily by the Federal Deposit Insurance Corp. The bank total was made up of $72 billion in retail production and $80 billion in wholesale lending.

Another $38 billion of the latest volume came from credit unions, according to data supplied to Mortgage Daily by Callahan & Associates.

Credit union lending consisted of $31 billion in first mortgages and $7 billion in other real estate loans.
Non-bank originators generated $163 billion of first-quarter 2017 activity, based on an visual analysis of graphic data reported by the Conference of State Bank Supervisors.
Non-bank production was comprised of $94 billion in purchase financing, $63 billion in refinances and $6 billion in home improvement loans. Market share during the most-recent period was 43 percent for banks, 11 percent for credit unions and 46 percent for non-bank lenders.

The following table shows how the latest market share compares to three months earlier and one year earlier — with credit unions making a significant gain.

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