Well it’s that time of year when Callahan & Associates releases their quarterly Trendwatch, and reports on Credit Union performance. I’m always interested in the mortgage market share. It should be no surprise to anyone that first mortgage originations in Credit Unions dropped in the final quarter of the year. Volume fell by 24% from the prior quarter and 34% year over year. Credit unions originated $23 billion in first mortgages in the fourth quarter making it as the lowest volume quarter since third quarter 2011. Not good.
But the good news is that overall mortgage lending fell at an even faster rate. Total volume declined by 27% from the prior quarter and 42% year over year.
So what’s all this mean?
Recently I wrote about the importance of community mortgage lending. I’ve touted the benefits of affordable housing and partnering with non-profits. A friend and mentor of mine suggested to me that I remember to relate my posts back to the member impact. He’s exactly right because that’s what being memberlicious is all about.
So here’s a try at that. I shared a bit about how Wright-Patt Credit Union has been actively involved with community lending. We’ve been doing it since about 2004. Here are a few member stories.
It’s a beautiful day in the neighborhood. I have always wanted to live in a neighborhood with you so let’s make the most of this beautiful day, since we’re together I might as well say “won’t you be my neighbor.” We all know that song though I’m sure I butchered the lyrics a bit. It’s Mr. Fred Rogers and he’s putting on his tennis shoes and his sweater and he wants to be your neighbor.
Well if you want to be a community lender I suggest you go find a neighbor and that neighbor be your local NeighborWorks America affiliate. Who are they?????
When you read that headline, you might think I’m crazy because you probably remember when Bank of America was the high-flying mortgage lender who somewhat crashed and burned.
Back in 2008, they bought Countrywide Home Loans and were the largest originator of mortgage loans in the country. But that didn’t work out so good. Many losses, lawsuits and settlements later, BofA appears to be trying to get back closer to the top. They recently reported they raised their commitment to affordable housing by more than 25% in 2013.
Now in reality a good part of this is probably due to the Community Reinvestment Act. Other parts come from commitments to finance affordable apartment buildings, provide grant dollars to such organizations as Habitat for Humanity and over 200,000 hours of banker volunteer hours across the country.
Nonetheless, they committed a good chunk of change – over $3.3 billion in 2013 – to affordable housing….