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CUs only lenders to increase 2011 mortgage lending FFIEC
WASHINGTON (9/19/12)--Home purchase mortgage loans orignated at credit unions increased by 8.5% in 2011, and credit unions were the only type of financial institution to increase their mortgage lending in that year, according to Federal Financial Institutions Examination Council (FFIEC) data.

Mortgage lending for home purchases at banks decreased by 7.1%, and mortgage lending at thrifts declined by 24.1% during 2011, the FFIEC added.

Overall, the FFIEC reported that the total number of originated loans of all types and purposes declined by 780,000 between 2010 and 2011, in part due to a 13% decline in refinancings.

These numbers are part of the FFIEC's data on the mortgage applications, originations, purchases, and denials that were filed by credit unions and other Home Mortgage Disclosure Act (HMDA) -covered financial institutions in 2011. Documents detailing this data were released on Tuesday.

Under HMDA, credit unions with total assets of more than $40 million that have home or branch offices in defined metropolitan statistical areas must collect their loan data and report it to federal regulators.

The Federal Reserve in a separate release on the FFIEC data noted that the overall credit scores of borrowers are "considerably higher now than at any point in the past 12 years." The median score of mortgage borrowers has risen about 40 points since the end of 2006, the Fed said.

The FFIEC mortgage data covers transactions at 7,632 financial institutions, 2,017 of which were credit unions. The data also includes information on 11.7 million home loan applications, 7.1 million of which resulted in loan originations, and 2.9 million loan purchases. Information on 186,000 loan preapproval requests that did not result in home loans is also included.

The Fed noted that the 7.1 million loan originations reported in 2011 is the lowest loan total recorded in HMDA data since 1995's total of 6.2 million. Government-backed loans originated through the Federal Housing Administration's mortgage insurance program, the Department of Veterans Affairs (VA) loan guarantee program, and other government programs accounted for nearly 50% of all home purchase loans made in 2011, a slightly smaller share than the total reported in 2010, the Fed added.

The FFIEC data also includes disclosure statements, aggregate data for metropolitan statistical areas, nationwide summary statistics of lending patterns, and Loan/Application Registers, the FFIEC said. The data is further broken down by loan type, loan purpose, loan amount, property type, property location, applicant background, and census tract characteristics.

For more on the FFIEC report, use the resource link.

The FFIEC is comprised of the leaders of the National Credit Union Administration (NCUA), the Federal Reserve Board, the office of the Comptroller of the Currency, the Office of Thrift Supervision, the Federal Deposit Insurance Corp. (FDIC), and the newest member, the Consumer Financial Protection Bureau. NCUA Chairman Debbie Matz succeeded FDIC Chairman Sheila Bair as head of the FFIEC on March 4, 2011. She is serving a two-year term.
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