RALEIGH, N.C. (1/13/15)--More consumers are turning to credit unions for mortgages, according to a new study from Sageworks, a financial information company.
Sageworks identified the top 10 credit unions by mortgage loan volume for each of the four U.S. geographic regions (Northeast, West, South and Midwest).
More than three-quarters of these credit unions are each lending in excess of $1 billion to homebuyers through first mortgages or lines of credit backed by homes, according to the most recent federal data via Sageworks Bank Information (Forbes Jan. 11)
"Homeownership rates as a whole are also down in the U.S.," said Sageworks analyst Libby Bierman. "Nevertheless, whether it's through specific first-time homebuyer campaigns like some institutions have launched or just from the increased demand among consumers in their specific markets, the credit unions on this list process a large volume of mortgages."
Many credit unions have consciously invested in growing their mortgage portfolios, either through increased spending on marketing to make members aware of interest-rate offerings or special promotions, or through adding staff, Sageworks noted. Other credit unions are winning mortgage business as local housing markets flourish.
As of November, fixed-rate first mortgages account for 28.4% of credit unions' loan portfolios, according to credit union monthly estimates from the Credit Union National Association. Adjustable-rate first mortgages account for 12.4% of credit union loan portfolios.
In November, adjustable-rate mortgages increased 0.9%, while fixed-rate first mortgages rose 0.3%, according to CUNA. Other mortgages fell 0.2% in November.