Forty-eight states posted year-over-year growth in credit union mortgage originations. Kentucky led the way with a 61.8% increase in credit union mortgage originations. Banks and mortgage finance companies in the state increased mortgage originations 16.5% and 14.0%, respectively, over the same period.

That’s just one finding from the recently released Home Mortgage Disclosure Act (HMDA) data, a collection of mortgage loan data for credit unions, banks, and mortgage finance companies. All depository institutions with more than $44 million in assets are required to report HMDA data if they originate mortgage loans. Non-depository institutions have different thresholds, but generally must be at least $10 million in assets and originate at least 100 loans (for more clarification, refer to pages 3 and 4 of this document).ContentMiddleAd

Another finding: Credit union mortgage loan originations grew 15.4% year-over-year to reach $130.5 billion as of Dec. 31, 2016. Although national credit union market share declined slightly to 6.0%, credit unions in specific markets across the country increased share.

Credit unions in Iowa posted the largest year-over-year change in market share by dollar amount. They expanded 2.7 percentage points to 19.5% as of year-end 2016. Iowa now has the third-largest credit union market share by dollar amount, behind Alaska (25.3%) and Vermont (24.0%).

On an industry level, credit union market share by the number of loans originated was substantially higher than by dollar amount. Credit union market share by number of originations was 9.1%, or nearly 8.4 million, in 2016. By comparison, market share was 6.0% for dollar amount. Here, Vermont led the way. Credit unions in the state originated 30.4% of mortgages by number.

Comparing state-level mortgage share by dollar amount and number provides important insight, as credit unions often originate mortgages that are relatively smaller in dollar amount.

For example, in New York, credit unions originated 9.9% of mortgages by dollar, but 15.9% by number. The difference between the average mortgage loan originated by credit unions ($169,700) and the state’s non-credit union average ($395,700) causes this discrepancy in market share metrics. In fact, the mortgage loan rate for credit unions compared to banks and mortgage finance companies is lower in every state. This phenomenon aligns with the fact credit unions are smaller institutions, on average, that help underserved members in their communities.

The interactive display below shows state trends. Click a state on the map to filter, or hover over the top left corner of the map to use the search bar to find a state by name. Once filtered by state, the dashboard will update to show state-specific metrics.

This display covers just one layer of the trends that emerged from the recently released HMDA data. Credit union executives can leverage this robust mortgage data to answer many questions about what is happening in markets across the country. Callahan & Associates’ MortgageAnalyzer software drills down into data to answer:

• Who are the leaders in originations in an MSA?
• Who won and lost market share?
• How does the average balance of a credit unions’ mortgages compare to other lenders in the markets?
• What’s the demand for specialty products (FHA, VA) in a market?
• How does a credit union’s pull-through rate compare to other lenders in the market?

To analyze a specific institution, market, or type of mortgage product (purchase, refinance, VA, FHA), log in to MortgageAnalyzer via the Callahan client portal and get started.

Don’t Fear The Data Dump

HMDA data comes once a year. Join Callahan & Associates in unwrapping new insights to help credit unions lend smarter. Register today for HMDA Data Trends And Analysis. Space is limited.