McLEAN, Va.–Four credit unions made $1 billion or more in mortgages in California last year, federal data show–five, if you round up.
One made more than $2 billion in California home loans. And the five placed in the top 100 of all lenders that made mortgages in the Golden State during 2016.
Four of the credit unions are based in California, but it was an out-of-state institution that led the state in lending. Navy Federal Credit Union of Vienna, Va., had $2 billion in volume in California in 2016, according to Home Mortgage Disclosure Act data institutions filed with the Federal Financial Institutions Examination Council.
Navy’s volume was good for 48th overall in the state last year, according to an analysis of HMDA data done through LendingPatterns, a database maintained by fair lending and technology vendor ComplianceTech, McLean, Va.
Logix Credit Union of Burbank, Calif., came in second with $1.3 billion in California volume for 2016. That ranked it 77th in the country. It was followed by SchoolsFirst Federal Credit Union, Santa Ana, Calif. at $1.2 billion (83rd overall), and Golden 1 Credit Union, Sacramento, with $1.1 billion (86th).
Kinecta Federal Credit Union, Manhattan Beach, Calif., came as close as you possibly can to $1 billion in mortgage lending without actually getting there. It reported $999,959,000 in home loan volume to FFIEC, a unit of the Federal Reserve. That was good enough for 91st in the country.
Taking a closer look at Navy Fed’s performance in the Golden State last year, the military credit union made 6,670 mortgages in California. Navy Fed has a noticeably high number of no-lien home improvement loans nationwide, and in California HIL loans made up nearly a quarter of its volume (24%). Refinancings led purchase mortgages by 42% to 34%.
The credit union’s average first lien in pricey California was $390,000, with second liens (home equity) averaging $53,000 and other liens (such as HILs) averaging $19,000. It kept a lot of those mortgages (71%) in portfolio last year, with Ginnie Mae being its biggest secondary market, with 24%.
Department of Veteran Affairs loans made up nearly 40% of its California volume, as might be expected of a military lender. Most of the balance was non-governmental. More than 40% of its lending went to minorities, with Hispanics getting the highest share, at 17%.
Four credit unions placed in the top 100 mortgage lenders in Texas, though none reached $1 billion in volume.
University Federal Credit Union, Austin, was first (31st in the country) at $868 million. Right behind it was Randolph-Brooks Federal Credit Union, Live Oak, Texas with $863 million, good enough for 32nd overall. Security Service Federal Credit Union, San Antonio, took the bronze at $665 million (50th) and Navy Fed was fourth, with $606 million, good enough for 52nd in the country.
Looking at University Federal’s Texas performance, its average first lien loan was $285,000, with an average subordinate lien of $67,000. Ninety percent of its lending was non-governmental, with no VA loans and a 10% share done through the Federal Housing Administration.
Two-thirds of University’s approximately 3,300 Texas loans were for the purchase of a home. It made no home improvement loans, and refinancings had about a 35% share.
The credit union kept about a quarter of its 2016 Texas production in portfolio. Fannie Mae was its biggest agency investor, at 63%, with the balance going through non-agency investors.
Whites got 55% of the credit union’s Texas mortgages last year, with Hispanics having the biggest minority share at 14%.
—Mark Fogarty