Mortgage

HereÕ a snapshot of how California credit unions performed in the mortgage market

Post an uptick in mortgage applications

California credit unions witnessed an uptick in mortgages over the past year, according to the latest snapshot report from the California Credit Union League that analyzed the year-over-year data trends for credit unions.

Credit unions in the state reported a 14% increase in first-mortgages year-over-year, which includes a mixture of fixed-rate, adjustable-rate, purchase, traditional refinance, and cash-out refinance.

Most notably, mortgages hit a record high outstanding dollar amount of $58 billion, rising 69% from the most recent low in 2011 of $34 billion. For added context, the last historical peak was $36 billion in 2009.

However, despite the record high in dollar amount, credit unions also posted an 8% year-over-year decrease in originations, falling to $2.82 billion.

This doesn’t come as too much of a surprise given the steady rise in home prices. According to S&P Dow Jones and CoreLogic’s latest report, home prices increased 5.5% in April.

Meanwhile, credit unions posted a 3% increase in the combined category of Home Equity Lines of Credit and home equity loans (second-mortgages). In total, the outstanding dollar amount hit $9.9 billion, rising 10% from the most recent low in 2014 of $9 billion. The record high was $14.2 billion in 2009.

As of late, regulatory pressure has hindered credit union growth. But, this doesn’t mean they aren’t doing well, as seen in the above numbers. Matt Kershaw, CEO of Clark County Credit Union, explained this in a recent interview with HousingWire.  Kershaw noted that while credit unions have grown since the crisis, it’s not proof that regulations are not damaging the industry.

 

About the Author

Most Popular Articles

Housing market flashing recession signal

The housing market is signaling there will be an economic recession by the 2020 election, according to Benn Steil, director of international economics at the Council on Foreign Relations.

Oct 11, 2019 By

Latest Articles

Cheap rates will push 2019 mortgage volume past $2 trillion, Fannie Mae says

Fannie Mae boosted its mortgage origination forecast past $2 trillion. The new estimate is just a few billion dollars shy of the $2.05 trillion lent in 2016, and if next month’s forecast sees an increase of just 0.7%, it would make it the best year since 2007.

Oct 17, 2019 By