ARLINGTON, Va. — After reviewing the recently released data under the Home Mortgage Disclosure Act, NAFCU concluded that credit unions' approve more mortgages to minority applicants than other lenders.
"The findings of 2006 Home Mortgage Disclosure Act (HMDA) data demonstrate once again that credit unions are a preferred choice in the financial services industry, especially for people of modest means seeking mortgages. Credit unions are more likely to approve minority applicants, and they are more likely to offer loans at a lower rate of interest," NAFCU President/CEO Fred Becker said.
According to NAFCU's research staff, the 2006 HMDA data demonstrate that credit unions originated fewer loans above the 3% Treasury interest benchmark than did banks and thrifts. Only 2.7% of credit union loans granted to minority applicants had interest rates 3 percent greater than the Treasury benchmark compared with 28.5% for banks and 38.6% for thrifts.
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Additionally, NAFCU said of minority applicants making less than $40,000, credit unions had a 58% approval rating compared to 49% for banks and 51% for thrifts. Among all applicants earning under $40,000, credit unions achieved a 75% approval rating compared with banks and thrifts at 61% and 63%, respectively.
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