WASHINGTON – More than half of credit unions said they are selling mortgages to Fannie Mae, Freddie Mac or both, according to a new survey, that separately found the earnings component to be the only element in a Credit Union Sentiment Index to decline in February.
NAFCU reported a survey of its Economic & CU Monitor found 60% of respondents indicating they sell to the secondary market.
Among the other findings by NAFCU:
- Credit unions continue to be actively involved in the secondary market through the government sponsored enterprises (GSEs), with about 35% of respondents selling mortgage loans to Fannie Mae and nearly 12% selling mortgages to Freddie Mac. Roughly 12% of respondents to NAFCU's survey sell to both.
- Respondents sold, on average, 37.1% of their mortgage loans to the GSEs in 2017.
- Credit unions continue to be keenly opposed to a move toward full market privatization, with 73.3% of respondents opposing proposals to eliminate the GSEs in favor of full privatization of housing finance without a government guarantee.
- 74.1% of respondents supported keeping the GSEs or something similar with an explicit government guarantee.
Separately, the Monitor also included results from the February Credit Union Sentiment Index, an index based on NAFCU member responses to eight questions on growth and earnings outlook, lending conditions and regulatory burden.
Among the findings:
- The Credit Union Sentiment Index (CUSI) improved in February, reaching its highest point on record. The increase in the overall score was primarily driven by respondents' outlook on growth and regulation. The growth component rebounded after a dip in January, as 96% of respondents had a favorable outlook over the next 12 months.
- Respondents' perception of loan demand moderated, but their assessment of applicant quality improved. The earnings component was the only element of the CUSI to decline in February, NAFCU said.