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One More Reason to Switch to Credit Union: Increase in Mortgage Originations

August 12th, 2015 · No Comments · Mortgages

by Kristy Welsh

(Last Updated On: February 26, 2018)

One More Reason to Switch to Credit Union: Increase in Mortgage Originations

If you’re in the market for a home loan, there has never been a better time than now to join a credit union. Within 12 months’ time, mortgage originations through credit unions increased a whopping 35 percent. That combined with other perks makes credit union membership hard to pass up for prospective homeowners.

In the first quarter of 2013, credit unions logged a 7 percent share of mortgage originations. Two years later, in the first quarter of 2015, they showed a record 11 percent share. That’s based on research conducted by TransUnion, one of the three major credit reporting bureaus.

Granted, mortgage originations as a whole fell considerably between 2012 and 2014 – as they did for all lenders – but the most recent numbers tell a different story. From the first quarter of 2014 to the first quarter of 2015, credit union mortgage originations were up 35 percent (compared to 15 percent growth among other lenders).

The takeaway?

If you’re in the market for a mortgage, a credit union is a great place to start. This is especially true if you are a subprime borrower, as credit unions tend to have more lenient lending standards than banks.

Other Credit Union Benefits

Besides their record willingness to extend home loans to members, credit unions generally offer:

  • Lower interest rates
  • Lower fees
  • Superior customer service

Credit unions are also federally insured by the National Credit Union Administration (NCUA).

How to Join a Credit Union

Before you can apply for a loan through a credit union you must first join as a member. That said, you can’t just walk into any old credit union and apply for membership. You have to find one first with which you share a common bond.

Criteria varies, but may be determined by geography; professional, educational, or religious affiliation; or membership in another organization.

You can search for credit unions through the NCUA. But be sure to check with family, friends, neighbors, work, church, your child’s school, and any organizations of which you are already a member.

Are You In the Market for a Mortgage?

Check out 11 quick reads and resources for prospective homeowners.

Learn more about credit unions.

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