Buyers Turn to Credit Unions for Mortgages

January 14, 2015

Credit unions are increasingly pressing into a category traditionally reserved for banks: mortgages.

More home buyers are turning to credit unions for mortgages, according to a new report by Sageworks, a financial information company. Credit unions have quadrupled their market share since 2006, according to industry consultant data from Callahan.

Sageworks recently identified the credit unions that are issuing the largest amount of mortgage volume by region. The top credit union in the southern United States and nation for mortgage volume was the Navy Federal Credit Union, which serves the military and their families. The Vienna, Va.–based credit union’s volume from first mortgages and lines of credit was $19.33 billion as of Sept. 30.

“Whether it’s through specific first-time homebuyer campaigns like some institutions have launched or just from the increased demand among consumers in their specific markets, the credit unions on this list process a large volume of mortgages,” says Sageworks analyst Libby Bierman.

The following credit unions had the highest amount of mortgage lending in the third quarter of 2014, broken down by region:

  • Northeast: Digital Federal Credit Union, based in Marlborough, Mass., produced a mortgage volume of $2.08 billion, followed by Bethpage Federal Credit Union in Bethpage, N.Y., at $2.02 billion.
  • South: Navy Federal Credit Union, based in Vienna, Va., did $19.3 billion, followed by State Employees’ Credit Union in Raleigh, N.C., at $13 billion.
  • Midwest: Alliant Credit Union in Chicago, Ill., did $3.6 billion, followed by Citizens Equity First Credit Union in Peoria, Ill., at $2.1 billion.
  • West: Boeing Employees Credit Union in Tukwila, Wash., issued $3.1 billion, followed by San Diego County Credit Union at $2.8 billion.

View the full top 10 breakdown of highest mortgage market share volume among credit unions by region at Sageworks.com.

Source: “Mortgage Applicants Find a Home at Credit Unions,” Sageworks (Dec. 17, 2014) and “Homebuyers Finding a Home at Credit Unions,” Forbes.com (Jan. 11, 2015)