10 Fast Facts About Credit Union Mortgage Lending

credit union mortgage lending The tongue of a blue whale is as long as an elephant. A house fly lives only 14 days. Our eyes remain the same size from birth. On average, people move every 7 years... and in most cases, require a mortgage to do so. Obviously, some fast facts are more relevant to the everyday life of a credit union executive than others. Here are 10 fast facts about mortgage lending in credit unions:

Credit unions are known for having lower fees on their lending products: A bank's goal is to increase revenue, often at the expense of their customers, while a CU looks to provide its members with savings through lower rates and fees.
From 2005 to 2014, credit unions grew their share of the mortgage lending market to 8.3 percent from 1.9 percent of all originations, according to Bill Hampel, the chief economist for the Credit Union National Association (CUNA).
In 2015, the share of the mortgage lending market grew even more, to 11 percent.¹
The trend is continuing in 2016 as mortgage originations at credit unions increased during the first quarter, with 3.8 million mortgage memberships (an increase of 4 percent from the first quarter 2015).²
CU's growth in mortgage lending is remarkable given that overall home lending was down in the first half of 2016, with 4 percent fewer than in 2015’s second quarter.³
Credit unions are known for making mortgages available to people with lower income and credit scores, and to first-time home buyers: The approval rates for mortgages for individuals with low incomes and first time buyers is higher within credit unions. People helping people.
Thirty-six percent of homebuyers think the loan application process would be simpler if in-person meetings and phone calls with your credit union were eliminated completely and another 68 percent feel electronic communication makes working with credit unions easier.⁴ Paperless forms and electronic signatures are essential to credit union mortgage lending in 2016 and beyond, and your credit union loan origination system should have integrated signature capture for all loan documents.
Millennials are leading the charge for paperless banking and the number of Millennials banking with credit unions rose to 25 percent in Q1 2016, compared to 20 percent 3 years ago.4
Millennials are also prime candidates for mortgages as they settle down and start families, ready to move out of apartments and parents' homes into their own piece of the American dream.
Making credit union mortgage lending easy on first-time home buyers, and satisfying millennial's desire for electronic processing should be a top priority for growth potential in 2017. Why else would Quicken Loans offer Rocket Mortage? The mortgage market is in need of more mobile options, making this a prime time for credit unions to seize the opportunity.