Analysis Shows Mortgage Volume Driver Of Third Quarter Loan Biz

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Strong mortgage volume among credit unions helped fuel loan growth of 3.8% during the third quarter, outpacing quarterly share growth of 1.1%, according to figures analyzed by Callahan & Associates. The analysis is in line with reporting in the Dec. 8 Credit Union Journal suggesting credit unions should prepare for a reversal of the recent trend in which savings have outpaced loans.

Credit unions originated a record $29.1 billion in first mortgage loans in the third quarter, and other financial indicators remained strong, Callahan's said. The 9,764 federally insured credit unions reported overall ROA of 1.04%, and a loan-to-share ratio improvement (by 1.88 percentage points) to 69.69%. "The industry also generated more than $1.7 billion in service revenue, and $200 million more than total net income," Callahan's said. "This figure is significant to credit unions because of their increasing dependence on service income in order to remain competitive in today's market."

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