National And State Trends From The Latest HMDA Data

The latest HMDA data is here. Check out trends in the mortgage industry, including state leaders.

 
 

In 2015, nearly 7,000 lending institutions reported more than 14.4 million HMDA loan records. Among these, 2,000 credit unions and CUSOs reported mortgage data, making the HMDA data set the most extensive repository of cooperative lending activity within the housing market.

Although HMDA reporting includes a nine-month lag, the data captures the state of the housing market that underlies the U.S. economy. Additionally, HMDA data captures regional and state trends which offer a glimpse into cooperative mortgage volume, as well as the types of financing and mortgages that credit unions are extending to members.

Push In Mortgage Originations And Volume

Credit unions originated $113.0 billion last year, resulting in an annual increase of 34.0% from December 2014 to December 2015. In the same period loan volume grew 22.4%, expanding to 698,014 loans.

State leaders in total dollar of mortgage originations tended to possess the highest loan volume. Additionally, they led the country in assets and number of members. For instance, California ranked highest in total members (10.5 million) at year-end 2015 followed by Virginia (9.9 million), Texas (8.3 million), Florida (5.2 million), New York (5.2 million), Michigan (4.9 million), Washington (3.4 million), and North Carolina (3.8 million).

Colorado was the exception. Ranking number 10 in mortgage originations, credit unions in the state came in at number 20 in total members in the same period with 1.7 million members.

MORTGAGE ORIGINATION ($) LEADERS BY STATE
FOR U.S. CREDIT UNIONS | DATA AS OF 12.31.15
© Callahan & Associates | www.creditunions.com

  State Originations ($000s)  # Loans (000s)
1 California $19,361,316 993,976
2 Texas $6,473,705 558,755
3 New York $5,555,569 228,273
4 Washington $5,471,359 218,805
5 Virginia $5,193,890 227,956
6 Michigan $5,027,180 233,845
7 Florida $5,025,367 435,392
8 Wisconsin $4,830,023 154,806
9 North Carolina $4,621,079 231,332
10 Colorado $3,913,741 227,875

Source: Peer-to-Peer Analytics by Callahan & Associates.

Average Loan Balances Going Up

As of December 2015, the average loan balance for credit unions was $162,000 compared to $148,000 the year prior. This is an annual increase of 9.5%, which illustrates that credit union members are borrowing at a higher level to finance their mortgages.

Learn more about credit union mortgage lending trends during Callahan's free HMDA webinar on Dec. 13. Register now.

At the state level, credit unions in the District of Columbia had the highest average loan balance at $341,000. As one of the most expensive places in the country, the District boasts comparatively high home values in a concentrated area. Home prices in nearby states have also risen, helping to push the average loan balance for local leaders including Maryland and Virginia.

West Coast credit unions had the largest representation among state leaders with California, Washington, and Oregon ranked second, sixth, and seventh, respectively. Alaska and Hawaii also made the list.

AVERAGE LOAN BALANCE LEADERS BY STATE
FOR U.S. CREDIT UNIONS | DATA AS OF 12.31.15
© Callahan & Associates | www.creditunions.com

  State Name Originations ($000s) # Loans (000s) Average Loan Balance ($000s)
1 District of Columbia $548,410 1,608 $341.1
2 California $19,361,316 64,978 $298.0
3 Alaska $1,191,013 5,350 $222.6
4 Maryland $3,157,092 14,908 $211.8
5 Hawaii $734,893 3,486 $210.8
6 Washington $5,471,359 26,320 $207.9
7 Oregon $2,508,595 12,285 $204.2
8 Virginia $5,193,890 25,534 $203.4
9 Massachusetts $3,656,183 18,159 $201.3
10 Colorado $3,913,741 19,507 $200.6

Source: Peer-to-Peer Analytics by Callahan & Associates.

Market Share Is Rising

Credit unions claimed 6.1% market share as mortgage originations reached $113.0 billion in 2015. Rising totals helped to expand the industry’s market share by 30 basis points, up from 5.8% in 2014.

Unlike origination and average balance leaders, state leaders in market share were mostly concentrated in the Northeast corridor. Regional credit unions included institutions in Vermont, Rhode Island, New Hampshire, and Maine. The Midwest was also represented with Iowa, Wisconsin, and Michigan credit unions making the list. 

Alaska credit unions were the leader among leaders with nearly 30% market share. They led the pack despite a 2.3 percentage point drop from December 2014 to December 2015. Utah also made the list with 10.8% market share.

MARKET SHARE LEADERS BY STATE
FOR U.S. CREDIT UNIONS | DATA AS OF 12.31.15
© Callahan & Associates | www.creditunions.com

  State Name Credit Union Market Share Credit Union Loan Originations  ($000s) Loans Originated ($000s) Change In Credi Union Market Share
1 Alaska 28.4% $1,191,013 $4,188,993 -2.3%
2 Vermont 24.0% $639,378 $2,667,812 3.4%
3 Wisconsin 18.3% $4,830,023 $26,427,453 0.8%
4 Iowa 16.9% $2,033,495 $12,048,240 -0.7%
5 Idaho 15.9% $1,463,365 $9,207,037 0.8%
6 Rhode Island 14.1% $746,381 $5,278,904 0.9%
7 Michigan 13.4% $5,027,180 $37,447,328 1.4%
8 Utah 10.8% $2,522,068 $23,429,938 0.4%
9 New Hampshire 10.2% $756,778 $7,431,181 0.2%
10 Maine 9.8% $543,295 $5,548,141 -0.4%

Source: Peer-to-Peer Analytics by Callahan & Associates.