WASHINGTON-While other lenders are tightening their portfolios, credit unions originated 14.7 million new loans totaling more than $200.2 billion through the first nine months of 2008, according to analysis by Callahan & Associates.
"Total loan volume is on pace to surpass the previous high reported during the 2003 refinance boom," said Jay Johnson, EVP at Callahan & Associates. "This healthy lending activity reflects an industry reaching all-time highs in its national share of first mortgage volume, auto loans and credit card balances in 2008."
Credit unions are making inroads into mortgage market share at a time that overall mortgage volume is down. First mortgage volume at credit unions is up 26% to $56.5 billion through the first nine months of 2008 versus the same period a year ago, pushing the credit union industry's first mortgage market share up to 3.9% through the third quarter, in contrast to 2.5% a year ago. This growth in volume comes as U.S. first mortgage volume has declined 20%, according to the Mortgage Bankers Association.
Among Callahan's other findings:
* Loans outstanding are up 7.2% over the past year to $568.7 billion.
* Share balances grew 5.8% to $679.4 billion.
* Membership increased by 1.3 million to 89.9 million for an anemic rate of .68%.
* The CU industry's net worth ratio standing is at 11.2% at the end of the third quarter.
* Credit unions continue to post positive earnings, with $3.0 billion in net income through Sept. 30.
Callahan's acknowledged delinquencies are rising and net income is below 2007 levels."
