First-mortgage lending is an increasingly important component of credit union lending and service to members, according to CUNA's economics and statistics department.
In 2013, credit unions originated more than $134 billion in first mortgages, up from $125 billion in 2012. That represents more than 6.5% of the entire mortgage origination market.
This pace is more than double the $61 billion of first mortgages credit unions originated in 2007, which made up only 2.6% of the market at that time. First mortgages now account for 41% of loans held in credit union portfolios, up from 33% in 2007.
Credit unions sold almost 52% of their first mortgage originations in 2013, up from 27% in 2007, due to their desire to reduce the interest-rate risk inherent in fixed-rate, long-term loans—especially at today’s historically low interest rates.
The U.S. Department of Labor’s proposed overtime rule would affect a substantial portion of credit union employees, particularly at smaller credit unions and those in rural or underserved areas, CUNA told the department Tuesday.