Mortgage Lending Slumps At Navy Fed
VIENNA, Va. – Record-low mortgage rates failed to boost lending at Navy FCU during the second quarter, as single-family loans funded dropped by 56% from the previous year’s period, to $944 million.
Based on its current “run rate,” the credit union could produce less than $4 billion of mortgages this year, compared to $6.2 billion last year. In March the $42 billion credit union made a commitment to lend $7 billion to its members this year, a goal that now looks tough to achieve.
As of June 30, Navy Fed serviced $28.3 billion of home mortgages, a slight increase from the same period a year ago. It enjoys a relatively healthy delinquency ratio of 2.17% compared to a national average of about 10%.