Search
 

A Glance at CMG's 2004 Lending Strategies and Trends Research

In the 2004 Lending Strategies and Trends Research completed by CUNA Mutual Group in December 2003, credit unions with $50 million or more in assets were asked about their consumer and real estate lending programs. Here are some of the results concerning CUs' mortgage programs. Loan Volume Purchase Money versus...

By Staff Writer | Updated on June 01, 2004

In the 2004 Lending Strategies and Trends Research completed by CUNA Mutual Group in December 2003, credit unions with $50 million or more in assets were asked about their consumer and real estate lending programs. Here are some of the results concerning CUs’ mortgage programs. Loan Volume Purchase Money versus Refinancings July-Dec. 2003 (estimates by lenders) * Percent of first mortgages purchase money-30% * Percent of first mortgages refinancings-70% * There were no significant differences by assets size * Compared to 2002, the percent of loans that were purchase money decreased by 6%. Correspondingly the percent of refinancings increased by 6%. * Generally, mortgage staff are not being incented differently for purchase-money mortgages versus refinance mortgages. Twenty-seven percent of the lenders said their credit union is providing monetary incentives to lending staff for mortgage volume generated. Of those incenting, only 16% of the CUs’ $50 million or more in assets reported a difference in incentives. Types of Mortgage Loan Programs * Percent with high LTV loans-60% * Percent with “A” credit loans-77% * Percent with first time buyer-50% * Credit unions $250 million or more in assets are more likely to have these specialized loan programs than CUs with fewer assets. * Since 2002, the percentage of CUs with these programs has increased. In 2002, the percentages were 39% (high LTV), 48% (“A” credit loans), and 35% (first time buyer) * Only 14% of the lenders price their mortgage loans taking into account the number of other products and services that the member has at their credit union. This percentage did not change significantly over the previous year. Source: CUNA Mutual Group

Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.

Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical CUTimes.com information including comprehensive product and service provider listings via the Marketplace Directory, CU Careers, resources from industry leaders, webcasts, and breaking news, analysis and more with our informative Newsletters.
  • Exclusive discounts on ALM and CU Times events.
  • Access to other award-winning ALM websites including Law.com and GlobeSt.com.

Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Recommended Stories

Credit Union Times

Join Credit Union Times

Don’t miss crucial strategic and tactical information necessary to run your institution and better serve your members. Join Credit Union Times now!

  • Free unlimited access to Credit Union Times' trusted and independent team of experts for extensive industry news, conference coverage, people features, statistical analysis, and regulation and technology updates.
  • Exclusive discounts on ALM and Credit Union Times events.
  • Access to other award-winning ALM websites including TreasuryandRisk.com and Law.com.

Already have an account? Sign In Now
Join Credit Union Times

Copyright © 2024 ALM Global, LLC. All Rights Reserved.