Credit Unions Reaping Benefits from Housing Market Gains

Share Article

Tobias Nergarden comments on news in the Credit Union Times that low interest rates and increasing new mortgages are driving growth in credit union membership.

Tobias Nergarden issued his statement following reports in the Credit Union Times that credit unions are benefiting from the healing market for mortgages; he believes that this news is great for home buyers, as it increases their options for home financing and will lead to more competitive lending among banks.

Traditionally, most credit unions have relied on checking accounts, auto loans and higher-interest savings accounts to drive their membership. However, record-low interest rates and a buyer’s market make home buying more attractive than it’s been in years, and more Americans are turning to buying over vacation rental by owners. Some credit unions are noticing that mortgages are driving a growth in new member rolls for credit unions.

Robert Dorsa, president of the American Credit Union Mortgage Association, said that there has been a “real reversal” in the priorities of credit union members. Where home loans used to be a low priority for members, they have surged up to become much higher priorities.

The reasons for this shift are many: perhaps most prominently, credit unions have not offered mortgage loans to their members for as long as banks have. After credit unions became able to offer them, many members didn’t recognize that they could get them through their union. An increase in awareness of mortgage availability is being touted as one reason for increased membership, even though many credit unions still aren’t using mortgage loans as a major advertising point.

Experts also credit the strong reputation of credit unions compared to banks, the dissolution of mortgage brokerage firms that were ruined by the housing collapse, and an avoidance of risky subprime loans that got bigger banks in trouble during the crisis.

One credit union in Florida made over $1 billion in mortgage loans in 2010, and is on track to lend out a similar figure by the end of 2012. The CEO of the credit union said that the surge in demand was due to low interest rates and a carefully-maintained reputation. Many of the union’s new members evidently came to the firm via word-of-mouth.

Tobias Nergarden issued his support of news that credit unions were experiencing a surge in mortgage lending and membership rolls as the housing market recorvers and mortgage rates reach record lows. For more information, visit

About the Real Estate Marketing Insider:
Real Estate Marketing Insider is an online publication that provides real estate professionals with news, marketing tips and insider analysis. The publication is based in La Jolla, CA.

Share article on social media or email:

View article via:

Pdf Print

Contact Author

Real Estate Marketing Insider
Real Estate Marketing Insider
(641) 715-3900 912955
Email >
Visit website