Friday Edition Credit unions holding their own in mortgage market
Credit union mortgage market share held flat at 6.1 percent in 2015 according to Callahan & Associates’ analysis of the just-released Home Mortgage Disclosure Act (HMDA) data. Callahan’s analysis shows that in 2015 credit union market share reached double digits in nine states.
The largest change in mortgage market share was seen among non-depository financial institutions, such as online providers and mortgage finance companies, which increased from 40.1 percent to 43 percent year-over-year, according to Callahan’s. Total first mortgage originations expanded $461.4 billion (33 percent) to $1.8 trillion dollars, reported Callahan’s Director of Industry Analysis Sam Taft.
“While credit unions did not see growth in market share, it is encouraging to see them maintain share in a growing market, while banks’ market share declined,” Taft said in a statement. “This could be due to consumers continuing to trust credit unions with their real estate financing needs and increasing visibility throughout the country of the value proposition credit unions offer.”
Meanwhile, credit unions in the Florence-Muscle Shoals, AL, metropolitan statistical area saw the largest increase in market share with an 8.8 percentage point increase bringing total market share in the northern Alabama region to 18.2 percent, Callahan’s said. Read more at CU Today.