HMDA Data Reveals Credit Union Mortgage Loans Are More Affordable

October 11,2021

A recent mortgage study by the National Credit Union Administration’s (NCUA), “Interest Rates for 30-Year Fixed-Rate Mortgages Originated in 2018: Relative Findings for Credit Union Mortgage,” revealed some interesting facts about credit union mortgage loans. In their examination of 2018 Home Mortgage Disclosure Act (HMDA) data, they found that borrowers generally saved more money with a mortgage loan from their credit union than from any other lender.

The 2020 mortgage study/report and accompanying presentation slideshow by NCUA’s chief economist shows that*:

  • Credit union borrowers are approved for 30-year fixed rate mortgages (purchase and refinance) having interest rates that are 9-to-14 basis points lower than other lenders (a basis point equals 1/100th of one full interest rate point).
  • This holds true for borrowers in both urban and rural areas across the United States.
  • It also is true no matter if the mortgage loan principal size is as low as $100,000 or as high as $300,000. Higher mortgage amounts were not examined, but there’s a good chance the same low-rate benefits apply.
  • This lower-interest-rate difference is not likely the result of differences in credit risk (borrower credit scores, loan-to-value ratios, and debt-to-income ratios).

*Study is based on recent Home Mortgage Disclosure Act (HMDA) data, using analytics and filters on interest rate, rate spread, credit score, loan-to-value ratio (LTV), debt-to-income ratio (DTI), and local geography.

This information proves your credit union provides the best home loan solutions for borrowers for more reasons than great service. However, this data is only as powerful as you make it. Share it with your members and help them understand great low rates and terms are available now at your local credit union.

by CU Members

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