Credit unions continue their bid to become a real player in the mortgage industry.
According to numbers from Callahan & Associates, Washington, DC, credit union market share of originations jumped to 6.5% at the end of 2011. That’s a tripling in five years (granted it is still on the low end, but the trend is dramatic).
On the servicing side, credit unions have a portfolio of $310 billion of first and second mortgages. Since they have just crossed the $1 trillion asset threshold in aggregate, that’s 31% of credit union assets in mortgages. Not even conceivable 25 or 30 years ago!
At a total mortgage portfolio of $9.1 trillion according to MortgageStats.com, that translates to a 3.5% servicing share for the cooperative institutions. And with servicing deconsolidating in recent years, credit unions will find it fairly easy to beef up their share if they want to.
