Callahan & Associates is urging credit unions to push forward with housing finance programs and aim to write 20% of the nation's mortgage loans.

Credit unions wrote 8% of the nation's mortgage loans in the first quarter of 2012, a new high. Callahan's suggested aiming to write 20% of the nation's mortgage loans by the year 2020.

“The window of opportunity is not going to stay open indefinitely. We should set our minds to our new goal and take the first steps now,” said Jay Johnson, the Washington-based consultancy's executive vice president.

According to Callahan, significant changes in the nation's housing market have occurred since the start of the credit crisis in 2008 that present the industry with opportunities to help re-shape the market, including:

  • The uncertain future role of the government in mortgage lending.
  • The ongoing development of housing finance reforms.
  • The shutdown of the private mortgage securitization market.
  • Bank of America and Citi continuing to pull back from lending and tightening correspondent channels.

“If credit unions do nothing, likely increases in mortgage market share will correspond with membership growth— but nothing more,” the firm wrote in a report.

“If they seize the moment, however, credit unions can ensure mortgages uplift families rather than weigh them down. But it's going to take imagination, industry collaboration, and significant sacrifice before credit unions achieve that meaty 20% market share,” the report said.

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