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WEEK OF MONDAY, APRIL 25, 2016
financial
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A Publication of The Warren Group
A LARGER SLICE
Credit Unions Take A Bigger Piece Of The Pie New Regs, Change In Public Opinion Help CUs Capture Marketshare
SLICE BY SLICE Volume of Purchase Loans
Credit Unions Banks Mortgage Companies Other
2009 Credit Unions: $650,363,947 Banks: $7,987,972,537 Mortgage Companies: $6,453,936,110 Other: $686,343,699
2012 Credit Unions $682,218,151 Banks $9,119,502,704 Mortgage Companies $7,129,252,828 Other $595,449,288
2015 Credit Unions $1,307,188,548 Banks $12,890,553,159 Mortgage Companies $11,353,037,066 Other $942,366,033
BY LAURA ALIX BANKER & TRADESMAN STAFF
T
he financial crisis and ensuing regulatory remedies may have permanently shifted the lending landscape, but not all lenders were damaged or displaced. The credit union industry in particular has benefitted – shifting public sentiment, a push to raise their profile in the eyes of consumers, and even some of the newer financial regulations have resulted in credit unions moving in on the turf of banks and mortgage companies. According to data from The Warren Group, publisher of Banker & Tradesman, Massachusetts credit unions made 2,943 of the 98,842 purchase loans statewide in 2005. In 2010, credit unions made 2,817 of the 54,093 total loans across the Bay State. And in 2015, credit unions made 4,739 out of the 71,460 loans statewide. As a lender category by volume, credit unions captured about 4 percent of the purchase market statewide in both 2009 and 2012, making $650.4 million and $682.2 million worth of loans, respectively. Then last year, credit unions made $1.3 billion purchase mortgages, this time capturing 5 percent of the pie. They did a little better with nonpurchase loans, however. Credit unions made $2.53 billion in non-purchase loans last year, or about 7 percent of all such loans. They made about $4.2 billion, or about 6 percent, of all non-purchase loans in 2012, arguably in the thick of the refinance boom. In 2009, they also captured about 6 percent of non-purchase residential loans, for a total of about $3.78 billion as a lender category. By way of comparison, banks still captured about 51 percent of the non-purchase market and mortgage companies captured 39 percent last year. Credit unions aren’t putting their larger competitors out of business, but they are, slowly and surely, carving out a bigger slice of the pie. Credit unions and their cheerleaders will tout those famously competitive interest rates and high-touch service, but that’s not exactly the whole story.
Regulatory Relief
In more than one way, credit unions benefitted from the financial crisis. Post-financial crisis regulation leveled the playing field between credit unions and their larger competitors, and consumer dissatisfaction with the biggest of banks drove many Continued on Page 8
CONTENTS
By The Numbers ������������������������������������������������������� 6
Classified Sections ������������������������������������������������� 10
Residential �������������������������������������������������������������� 3
In Person ������������������������������������������������������������������ 7
CRE Insider ������������������������������������������������������������ B1
Points ����������������������������������������������������������������������� 4
Banking & Lending �������������������������������������������������� 9
Records Section ������������������������������������������������������ C1
CREInsider The
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A
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T
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