CUs 'bigger players' in mortgage market: TransUnion

August 12, 2015

CHICAGO (8/12/15)--Credit unions are capturing a greater share of the mortgage loan market while continuing their strong performance in auto lending, according to new TransUnion research. Credit unions’ share of all mortgage originations has increased to 11% in 1Q 2015 from 7% in 1Q 2013.

In the past year credit union mortgage originations increased 35%, compared with a 15% increase for the rest of the market.


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In the survey of more than 90 credit union executives, nearly six in 10 respondents stated the number of mortgage originations provided to their members has grown over the past two years.

“Mortgage originations had declined substantially across the board in the last few years; however, the decline had been less dramatic for credit unions,” said 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.”

Auto loans--long known as credit unions' core credit offering--ranked at the top of the list for credit union executives in terms of loan growth, focus and opportunity over the next 12 months. Auto loans were ranked No. 1 by 48% of credit union executives and in the top three of 12 loan categories by 81% of respondents.

From 1Q 2014 to 1Q 2015, TransUnion reported a 7.4% increase in new auto loans issued by credit unions, while the rest of the industry saw a 2.1% increase in the same timeframe. Subprime constituted 12.5% of all new loan originations in 1Q 2015 for credit unions. This was similar to the 13.1% subprime share of originations in 1Q 2014.

CUNA’s monthly estimates support TransUnion’s findings. In 2014, credit union loans outstanding rose by 10.2%, the fastest jump since 2005 when loans expanded by 10.7%, according to CUNA’s monthly estimates (News Now Feb. 6).

Fixed-mortgage, adjustable-mortgage and home-equity loans posted gains of 6.7%, 14.1% and 7.2% respectively for the year, while other loans (13.7%), unsecured-personal loans (10.5%) and credit card loans (7%) also posted healthy gains.