Credit Unions See More Signs of a New Auto Loan Revival
During the first half of 2012, loans for new cars at credit unions experienced their first annualized increase in more than two years.
That’s according to industry analysis from Catalyst Strategic Solutions, a subsidiary of Catalyst Corporate Credit Union in Plano, Texas. Auto loans increased 4.5% from January to June. First-lien mortgages were also up 5.3%.
Brian Turner, director and chief strategist for Catalyst, said the increases in lending activity has loan growth averaging 2.3% for the first six months of 2012 compared to a negative 1.6% contraction this time last year.
“The unfortunate news is most of the loan growth seems to be limited to larger credit unions who have a bigger appetite, and capacity, to retain its current originations,” Turner wrote in his analysis. “Moreover, tighter net margins tend to increase minimum rate requirements perceived by smaller credit unions which in turn directly limit their growth capacity.”