WASHINGTON–Credit unions in Iowa, Arkansas, Ohio, Mississippi and Maine lead the credit union industry when it comes to mortgage loan growth, according to analysis of nearly 6,000 credit unions reporting second quarter 2016 data.
Iowa leads the industry with 27.9% annual growth of first mortgages followed by Arkansas at 27.3%, Ohio at 27.1%, Mississippi at 20.3%, and Maine at 19.6%, according to Callahan & Associates.
In total, 33 states posted positive growth in their first mortgage portfolio, denoted by green in the map at right, Callahan’s reported. Collectively, credit unions in nearly 25% of all states saw double-digit first mortgage origination growth in 2Q 2016.
“Credit unions in the southern states posted heavy concentrations of growth, whereas growth slowed considerably for credit unions in parts of the West and Midwest,” according to Senior Analyst Michelle Parker. “A variety of economic trends, from rising rent costs in cities nationwide to historically low interest rates, are pushing demand for housing inventory.”
As an industry, Callahan’s reported first mortgages soared 9.8% annually and account for 37.6% of total loan growth. Credit unions now hold more than $340.7 billion in first mortgage loans, the highest ever reported balance. In the first six months of 2016, originations totaled $62.6 billion, a 1.7% annual increase over the previous June and the most loaned out since 2013.
Meanwhile, as of the second quarter of 2016, 4.4% of the industry’s 106 million members have a real estate loan — first mortgage, second mortgage, or home equity line — with their credit union. Credit unions added more than four-million members over the past 12 months, with membership today surpassing 106 million members, according to Callahan’s data.
Notably, membership increased 4.0% year-over-year, the highest annual growth rate since June 2002, the company said.