CUs go HELOC crazy

first_imgI had a sense that more credit unions were getting involved with HELOC’s but I didn’t know how big the trend was until I read this article in today’s American Banker. The paper reports that the growth in credit union HELOC lending combined with an overall decline in the number of HELOC accounts has sent the share of HELOC’s owned by credit unions soaring. In fact, credit unions now hold 13.16% of the HELOC market up from 9.63% in 2015. The graph accompanying today’s blog underscores just how big the increase has been.What’s even more interesting is the reason the article points to for the trend. While banks are still holding back the reigns with more conservative underwriting standards, credit unions are more comfortable with underwriting loans based in part on comfort with the member’s payment history. Ezra Becker, a senior Vice President at Trans Union Financial Service Business Unit points out, “credit unions do a good job working with member loyalty so they may be willing to make a loan that another institution may be unwilling to make.”Now for a boring compliance reminder. This increased interest in HELOC’s is coming just as changes to HMDA regulations mean that any institution that makes more than 500 home equity loans a year as of January 1, 2018, and meets other compliance thresholds, will now have to report these loans. continue reading » ShareShareSharePrintMailGooglePinterestDiggRedditStumbleuponDeliciousBufferTumblrlast_img