WASHINGTON—Credit unions accounted for about 9.7% of all mortgage originations in 2017, according to Home Mortgage Disclosure (HMDA) data.
This is up from 9% in 2016, reported Keith Leggett, the former senior vice president and senior economist at the ABA, in his analysis.
In 2017, 1,706 credit unions were HMDA reporters.
Out of these 1,706 credit unions, 781 credit unions made fewer than 100 loans and 198 credit unions originated fewer than 25 loans, noted Leggett.
Credit unions originated 237,000 home-purchase loans in 2017 and 209,000 refinance loans. A home-purchase loan or refinance loan is first lien mortgage for a one-to-four family, owner occupied, site-built homes.
Approximately 85% of home-purchase loans originated by credit unions were conventional mortgages, while almost 95% of refinance loans originated by credit unions were conventional mortgages, Leggett said.
“Credit unions are more likely than other lenders to hold mortgage loans they originated in portfolio. Credit unions sold about 44.9% of the home-purchase loans they originated and about 32.2% of the refinance loans they originated,” Leggett said.
Credit unions reported that 4.3% of their conventional home-purchase mortgages were higher-priced loans, while 3% of their refinance loans were higher-priced loans.
Navy Federal Credit Union was the twelfth largest mortgage originator in 2017 and the only credit union to appear among the top 25 originators. Roughly 38% of the home purchase loans were conventional mortgages and approximately 23% of these conventional mortgages were higher-priced loans, said Leggett.