Despite a downturn in the home mortgage refinance market, credit union housing finance programs still refinanced significantly more mortgage notes in 2013 than they originated purchase money loans, according to data reported under the Home Mortgage Disclosure Act.
According to 2013 HMDA data accessed through LendingPatterns.com, a data analysis tool developed by Compliance Technologies Inc., credit unions originated over 50,000 fewer mortgage loans in 2013 than they did in 2012.
In line with the slowed housing market, credit unions originated only 610,536 mortgage loans in 2012, while they booked 674,150 of them that year, the data showed.
Meanwhile, credit unions increased the percentage of purchase money loans from 18.99% of overall mortgage loans they originated in 2012 to 25.27% of overall mortgage loans originated in 2013.
Borrowers used purchase money loans to buy real estate as opposed to refinancing existing housing debt.
The percentage of loans used to improve existing property also rose from 11.64% of overall mortgage loans in 2012 to 15.61% of overall mortgage loans in 2013.
Credit unions also made roughly the same percentage of mortgage loans to lower and moderate income borrowers in 2012 that they did in 2013, the HMDA data revealed.
According to the numbers, 25.61% of credit union-originated mortgage loans went to low and moderate-income borrowers in 2012 while 25.08% of mortgage loans went to low and moderate-income borrowers in 2013, the data showed.
Some credit union mortgage executives have said purchase money loans generally carry more cross-selling opportunities than refinancing existing notes
The Mortgage Bankers Association previously said 2014 would be the year when mortgage lenders would make more purchase loans than they refinanced.
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