Credit Union Mortgage Market Share Is Unchanged In 2015

A closer look at Home Mortgage Disclosure Act (HMDA) data shows credit unions hold steady and bank market share declines.

Credit union mortgage market share held flat at 6.1% in 2015, whereas bank market share declined 2.9 percentage points, according to Callahan Associates’ analysis of the just-released Home Mortgage Disclosure Act (HMDA) data.

The largest change in mortgage market share occurred among non-depository financial institutions, such as online providers and mortgage finance companies, which increased from 40.1% to 43% year-over-year. The only other segment to report an increase in market share was OCC-regulated institutions, consisting of national banks and savings institutions, which increased their market share 0.6 percentage points from 5.8% to 6.4% from 2014 to 2015.

Total first mortgage originations expanded $461.4 billion, or 33%, to $1.8 trillion dollars, according to Callahan director of industry analysis Sam Taft.

Although credit unions did not increase market share, it is encouraging to see them maintain share in a growing market, Taft says. Bank market share, on the other hand, declined. This could be due to consumers trusting in credit unions for their real estate financing needs, credit unions’ increasing visibility throughout the country, or the value proposition credit unions offer.

In 2015, credit union market share reached double digits in nine states, led by Alaska at 28.4%. Vermont credit unions increased their market share the most on a year-over-year basis, rising 3.4 percentage points to 24.0%, the second highest to Alaska.


State Total First Mortgage Loan Originations
(In Thousands)
Total Credit Union First Mortgage Loan Originations
(In Thousands)
Credit Union Market Share
Alaska $4,188,993 $1,191,013 28.4%
Vermont $2,667,812 $639,378 24.0%
Wisconsin $26,427,453 $4,830,023 18.3%
Iowa $12,048,240 $2,033,495 16.9%
Idaho $9,207,037 $1,463,365 15.9%
Rhode Island $5,278,904 $746,381 14.1%
Michigan $37,447,328 $5,027,180 13.4%
Utah $23,429,938 $2,522,068 10.8%
New Hampshire $7,431,181 $756,778 10.2%
Maine $5,548,141 $543,295 9.8%

Source: MortgageAnalyzer by Callahan Associates | Home Mortgage Disclosure Act

Meanwhile, credit unions in the Florence-Muscle Shoals, AL, metropolitan statistical area (MSA) posted the largest increase in market share. Its 8.8-percentage-point increase brings total market share in that northern Alabama region to 18.2%.

Nationally, credit union market share of FHA loans declined 20 basis points year-over-year to 0.9%. The FHA origination market by all institutions outpaced activity by credit unions, increasing 71.9% nationwide, whereas credit unions expanded their FHA originations 45.5% over the period.

Credit union VA loan market share increased from 4.7% to 5.2%. Total VA loans originated by credit unions increased at a faster rate than the broader market, 45.4% compared to 30.8% nationwide.

October 17, 2016

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