This week CreditUnions.com takes a deep dive into credit union mortgage data, finds a credit union that’s unafraid to answer member questions like a boss, shows why credit unions with limited fields of membership don’t have to rely on indirect loans, and more.
Here are five can’t-miss data points for the week:
New Home Mortgage Disclosure Act (HMDA) data is available, and the newest data set shows credit union mortgage loan originations increased 15.4% year-over-year to reach $130.5 billion as of Dec. 31, 2016. Nationally, credit union market share declined slightly to 6.0%. Banks captured 49.0% of the market and mortgage finance companies captured 45.0%.
As Callahan & Associates analyzed the HMDA data released in September 2017, some national leaders emerged. See which credit unions, banks, and mortgage finance companies generate the most mortgages across the country in Who Tops The Chart In Mortgage Originations?
In the run up to its 2016 charter change, Commonwealth Credit Union planned to enter its new markets with a personal look and feel for members. Additionally, it wanted to make its CEO, Karen Harbin, a relatable figure with financial authority.
To this end, Commonwealth launched its Hey, Karen marketing campaign in 2014. Using social media or an online form, members and non-members alike could ask their banking questions using the hashtag (#HeyKaren), and Harbin would personally respond. In the first few months, Harbin received more than 100 questions per day. Learn more about the initiative and its follow-up in How To Answer Member Questions Like A Boss. ContentMiddleAd
670 Credit Score
Because Johns Hopkins FCU has a limited field of membership, the unlimited reach of indirect lending is less than appealing. To skirt auto dealership originations entirely and put money back in members’ pockets, the credit union started offering a blank check program in January 2016.
For purchase loans only, members with a credit score higher than 670 qualify for a pre-approval check for an amount delineated by the member, not more than 75% of their yearly income. Learn more about the program in Blank Checks Are Better Than Middle Men.
Real estate loan balances outstanding at credit unions increased 9.5% year-over-year to reach $456.6 billion as of June 30, 2017. First mortgages accounted for $375.7 billion of those balances outstanding and represented 82.3% of the credit union real estate lending portfolio.
See how else credit union’s mortgage portfolio breaks down in Credit Union Mortgage Growth In A Word: Outstanding.
U.S. companies and government agencies suffered a record for data breaches in 2016, with 1,093. And with nearly three full months remaining in 2017, breaches are again occurring at a record pace.
Data breaches have become a fact of life for today’s financial institutions, and present significant challenges especially those that occur outside the credit union. In What To Expect When You’re Expecting A Breach, credit unions in California and Washington offer best practices for responding to breaches and reissuing cards.