The impact that credit union real estate loan portfolios have on net worth has increased and drawn the attention of examiners, consultant Tracy Ashfield told her CUNA Mutual Group Online Discovery Conference audience Tuesday.
The Ashfield and Associates principal presented a session that aimed to help credit unions prepare for real estate examinations by regulators.
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Despite credit unions selling approximately 50% of all first mortgages to the secondary market, Ashfield said the ratio of real estate loans to net worth has risen to more than 200% this year. And, real estate loans have increased from 39% of total loans to 55% in the past 10 years.
While credit unions may look at real estate loan numbers and feel pride in how the industry has captured more market share, Ashfield said, regulators see increased risk instead.
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