Financial Literacy Offerings Drive Down Credit Union Delinquency Rates
For institutions with $100 million or more in assets, educational offerings are often a key factor when it comes to preventing late loan payments.
For institutions with $100 million or more in assets, educational offerings are often a key factor when it comes to preventing late loan payments.
U.S. Treasury investment and updated rules from the National Credit Union Administration have resulted in a massive jump in the number of credit unions issuing subordinated debt and the overall dollar amount.
Credit unions have seen an almost 8% rise in loans and investments to credit union service organizations since the start of the pandemic.
Institutions designated to serve low-income memberships – shops that may be more reliant on fee revenue than others – are seeing those funds fall at a faster rate than non-LICUs.
Income from mortgage originations and servicing were down from one year ago following slowdowns in sales and refinancing.
After a decline in consumer spending during the pandemic, the end of government relief programs has contributed to an increase in credit card usage – and a rise in delinquencies.
Consumers are taking to fintech at a rapid pace, according to a recent study, with those age 56 and older representing the fastest-growing user demographic.
After two years of swings, first-quarter return on assets at credit unions was back in line with where things stood before COVID-19 upended the economic environment.
First mortgage originations at credit unions have risen substantially in the last decade, a period in which median home values have nearly doubled.
Strong loan growth combined with increased investment and fee income helped propel credit union net income during the first quarter.

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