Which States Have The Highest Credit Union Real Estate Penetration?

A map of the United States shows where credit unions dominate in different areas of the loan portfolio.

Real Estate Lending Penetration
FOR U.S. CREDIT UNIONS | DATA AS OF 06.30.22
© Callahan & Associates | CreditUnions.com

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  • Generally speaking, credit unions in the Northeast, Midwest, and Mid-Atlantic have more dominant mortgage lending businesses, whereas credit unions in the South and Southwest seem to prioritize consumer and auto lending. Northeast, Midwest, and Mid-Atlantic credit unions also tend to have high rates of real estate lending as a percentage of total loans and are more reliant on real estate as part of their business model.
  • Credit unions in the upper Midwest tend to sell a relatively high percentage of loans to the secondary market. Because sold loans do not count toward penetration numbers, these credit unions have average rather than high penetration rates. If credit unions in the Dakotas, Nebraska, Kansas, and Oklahoma kept a higher portion of auto loans on their books, they’d have higher penetration rates.
  • In some states, credit unions focus on loan types other than real estate, which dampens real estate penetration. For example, California is below average in real estate penetration but is in the 90 percentile in credit card penetration. Likewise, Georgia and Florida credit unions tend to focus on auto loan penetration, which is less popular in Northeastern states.
October 24, 2022

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