Credit Unions Issue More Home Loans As Housing Market Improves
A gradually improving economy with a growing demand in the housing market has helped credit unions by driving up the number of mortgage loans they issue opening up a new source of revenue for Notaries. Traditionally, most individuals have joined credit unions to take advantage of low fee checking accounts and low interest auto loans, but consumers have discovered that credit unions are now beginning to enter the mortgage lending industry.
Loan origination figures released recently revealed that the credit unions originated $82.5 billion in residential mortgages in 2011, a 37 percent increase from $60.4 billion in 2005. Residential mortgage volume as a whole dropped 57 percent during the same period.
Robert Dorsa, president of the American Credit Union Mortgage Association, said in a recent interview with industry media that the collapse of the housing finance industry drove many independent mortgage brokerage firms out of business, leaving a void which credit unions are now filling. Dorsa noted that credit unions have maintained a high level of trust that banks have lost as a result of the housing crisis and other financial scandals.