Closer Look At CUs And Non-Traditional Mortgages

WASHINGTON - Some credit unions do make and have made so-called “non-traditional mortgages.” According to CUNA:

Approximately 5.4% of credit unions have made some "non-traditional" mortgages–about 460 CUs.

Those 460 CUs represent approximately $272 billion in assets, or about one-third of all CU assets.

Those 460 CUs have approximately $5.8 billion in non-traditional loans.

At those 460 CUs, non-traditional loans account for 3.2% of their assets, and 7.1% of their mortgage loans.

At 108 of these CUs, non-traditional mortgages account for at least 10% of first mortgage loans outstanding.

“Further, there are nearly 120 credit unions in California (mostly large CUs with experienced mortgage lending staffs) that offer these loans–largely because the real estate market in California is so expensive, these ‘non-traditional" (interest-only) loans are the only way a lot of folks can buy homes,” said CUNA. (c) 2007 The Credit Union Journal and SourceMedia, Inc. All Rights Reserved. http://www.cujournal.com http://www.sourcemedia.com