The latest forecasts for new auto loan originations at credit unions appear to be positive but with some caveats.
While the rate of portfolio decline at credit unions is slowing, CUNA Mutual Group Chief Economist Dave Colby said his discussions with credit union leaders nationwide indicate that the slowdown in the rate of decline is due to reduced levels of amortization, payoffs and defaults, not to new loan originations.
"Credit unions continue to slowly build their used vehicle loan portfolios on an annual basis. The new vehicle portfolio is less of a drag on growth after hitting peak contraction of 17.1% in October 2010," Colby said in CUNA Mutual's May Credit Union Trends Report.
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