Categories: MortgageReal Estate

Borrowers turn to credit unions as banks tighten up on lending

Lending from credit unions is growing as borrowers seek out more options to finance their home purchases.

Between the end of 2019 and September 2020, membership of credit unions increased by 2.8%, or 3.37 million, and total membership now totals 125.11 million, according to a report by CNCB. Moreover, credit unions’ loan portfolios have grown by 6.6% over the last year, seeing an overall 5% increase in total loans over that period.

Credit unions are nonprofit entities that seek to return their earnings to members via lower loan rates than commercial banks. They also try to provide a more personal relationship to borrowers.

Affinity, a credit union with 20 branches in the New Jersey area, reported record-high growth in mortgage originations in 2020. It said the low interest rates and a surge in home buying are the main factors responsible for this. However, Affinity’s chief brand officer Jacquelyn Kearns said it also “saw growth on the lending side and on the deposits side, which is counter-intuitive amid the crisis and hardship”.

CNBC said that in times of economic uncertainty it’s not uncommon to see credit unions enjoy a boost in popularity. Jordan van Rijn, senior economist for the Credit Union National Association, told CNBC that banks tend to be cautious and pull back on lending. “But credit unions, as part of their mission, continue to serve the members,” he said.

Despite the pandemic, credit union asset quality improved over the past year. The delinquency rate dropped to 0.54% in September, according to the Credit Union National Association.

Mike Wheatley

Mike Wheatley is the senior editor at Realty Biz News. Got a real estate related news article you wish to share, contact Mike at

Recent Posts

Reverse Mortgages: Understanding the Pros and Cons

A reverse mortgage is a type of consumer home loan that allows homeowners ages 62…

14 hours ago

JPMorganChase cuts hundreds of mortgage staff as business dwindles

JPMorganChase has said it’s cutting jobs in its mortgage lending business amid tightening monetary policy…

15 hours ago

Pending home sales rose in May, but economists say it’s just a blip

Pending home sales increased in May, breaking a streak of six successive monthly declines, but…

16 hours ago


Industry Coach Tom Ferry Headlines Event JPAR® – Real Estate, America’s #1 fastest-growing, 100% commission…

1 day ago

Who You Hire Matters: Coltyn Simmons and Custom Fit Real Estate are Changing the Home Buying and Selling Industry

Reputation in real estate is everything. The team at Custom Fit Real Estate will tell…

1 day ago

Workforce Planning: Definition, Benefits, and Steps

Workforce planning can help you meet organizational goals in any economy. It’s been a challenging…

2 days ago