Good news for credit unions and home buyers - Cuna Mutual Group's recently released Credit Union Trends Report shows that demand for mortgage loans from credit unions is on the upswing.
Good news for credit unions and home buyers – Cuna Mutual Group’s recently released Credit Union Trends Report shows that demand for mortgage loans from credit unions is on the upswing.
The report cites a 34 percent increase in mortgage loans, and according to a recent CreditUnionsOnline.com article, one Texas credit union is experiencing quite a bit of success from lower rates.
Texas Trust Credit Union (Mansfield) has experienced a major boost in mortgage originations, according to Richard Whitman, the credit union’s vice president of mortgage and commercial lending. The $749 million credit union experienced a 37 percent increase in mortgage originations since April 2013, which Whitman reports is up from the same period last year.
Unlike most loans in the past, which were often 30-year terms, Whitman said that 65 percent of their mortgage loans have actually been for 15-year terms, and only 24 percent of new loans have been for 30-year terms. This he cites is a result of members taking advantage of lower rates to build their equity faster by shortening their loan terms.
So why are credit unions seemingly out-performing the competition? Whitman believes it’s all in the local service. Unlike big banks, credit union members have direct access to credit union staff working on their mortgages.