Lending

PHILADELPHIA-Marketing and training staff to cross sell helped boost American Heritage FCU's loan growth to 12% for 2008, well above the predicted national average for credit unions overall.

ORLANDO, Fla.-At a time when people are just happy to still be employed, convincing people to borrow money is no mean feat-one reason CUNA is predicting an average loan growth of 5% for U.S. credit unions in 2008.

MADISON, Wis.-Despite the economic downturn, Filene Research Institute chief Mark Meyer believes lifestyle lending will remain in high demand, especially for medical procedures.

PHILADELPHIA-Credit unions looking to reverse mortgages as one way to bolster its lending portfolio can choose from a number of options before taking the plunge.

SOUTH JORDAN, Utah-Unsecured loans to pay for elective medical procedures or big-ticket retail items such as Jacuzzis and central air conditioning at the point of purchase could become the next great opportunity for credit unions following in the footsteps of indirect auto loans, some industry experts say.

McLEAN, Va. – Home loan rates rose this week from record lows as the bond yields used to peg borrowing costs jumped to their highest levels in more than a month, according to Freddie Mac.

MANCHESTER, N.H.-A unique, internally created loan program is creating a symbiotic relationship between independent auto dealers and one credit union here with all sides, especially car-buyers, coming out as winners.

McLEAN, Va. – Rates on 30-year mortgages set a record for a fifth straight week by dropping to below 5%, the lowest mark since Freddie Mac started tracking the data in 1971.

LANSING, Mich.-General Motors' recent 0% financing offer should not surprise credit unions participating in the Invest in America program - in fact, CUs should expect financing competition from all of the Big 3 throughout 2009.

LANSING, Mich.-Due to CU member response and sales increases in the original 12-state pilot, GM and Chrysler have expanded participation in the Invest in America auto discount program and are now taking it nationwide.

FORT LAUDERDALE, Fla.-Was 2008 a tough year when it came to lending? One person doesn't expect early 2009 to offer much relief.

PHILADELPHIA-One lender here is expecting the new year to offer growth in student lending and perhaps mortgages, but auto will be weak.

COLORADO SPRINGS, Colo.-Could a return to manual loan underwriting in 2009 be a key to lending success.

WASHINGTON – Credit unions will be put on the defensive at today’s opening of the 111th Congress with the introduction of new bills that would allow bankruptcy courts to restructure at-risk mortgages.

ATLANTA-In contrast to what the pessimism the housing market would seem to imply, a new study found that many people expect to purchase a home within the next two years. The data, from SYNERGISTICS Research and included in a report titled, "The Outlook for Mortgage Lending," found that one-quarter of consumers anticipate buying a home in that time frame. Of those, one-ffth are renters who are looking to purchase a home, while slightly less than one-tenth are current homeowners who anticipate doing so.

American households are beginning to receive some good news about the severe economic downturn: Interest rates on mortgages and consumer loans are falling. Rates on trillions of dollars of existing bank loans owed by households are now above current market rates, and interest rates are likely to fall more. The result will be a refinancing bonanza for smart credit unions wishing to expand their loan portfolios.

DALLAS–A bit of good news for the new year? Declining mortgage rates have pushed mortgage applications in the U.S to a five-year high. The Mortgage Bankers Association’s index of applications to purchase a home or refinance a loan rose to 1,245.7, the highest level since 2003.Brian Turner, director of Southwest Corporate Advisory Services, noted, “Interestingly, the MBA’s refinancing measure fell 0.4% to 6,733.8, still the second highest level since December 2007. The average rate on a 30-year fixed-rate loan dropped to 5.14%, the lowest level since records began in 1990. The average on a 15-year, fixed-rate mortgage declined to 4.91%, the lowest since March of 2004.“The drop in mortgage rates has been one of the few bright spots in the mortgage market devastated by record foreclosures and falling home prices,” observed Turner. “Whereas lower rates have stimulated opportunities to reduce monthly payments, they have so far yet to stabilize sales. The MBA purchase index increased to 320.9 last week, from 316.4 the prior week. The measure reached an eight-year low of 248.5 in mid-November and peaked at a record 529.3 in June, 2005.”

NEW YORK–The real estate market continues remains perplexed over where the bottom might lie after home prices posted another record decline in October, dropping 18% over the same period one year earlier, according to the Case-Shiller index. That index, based on home prices in 20 cities, has now posted losses for a 27 months in a row. In October, 14 of those 20 cities set new price decline records.