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In the 2004 Lending Strategies and Trends Research completed by CUNA Mutual Group in December 2003, credit unions with $50 million or more in assets were asked about their consumer and real estate lending programs. Here are some of the results concerning CUs’ mortgage programs. Loan Volume Purchase Money versus Refinancings July-Dec. 2003 (estimates by lenders) * Percent of first mortgages purchase money-30% * Percent of first mortgages refinancings-70% * There were no significant differences by assets size * Compared to 2002, the percent of loans that were purchase money decreased by 6%. Correspondingly the percent of refinancings increased by 6%. * Generally, mortgage staff are not being incented differently for purchase-money mortgages versus refinance mortgages. Twenty-seven percent of the lenders said their credit union is providing monetary incentives to lending staff for mortgage volume generated. Of those incenting, only 16% of the CUs’ $50 million or more in assets reported a difference in incentives. Types of Mortgage Loan Programs * Percent with high LTV loans-60% * Percent with “A” credit loans-77% * Percent with first time buyer-50% * Credit unions $250 million or more in assets are more likely to have these specialized loan programs than CUs with fewer assets. * Since 2002, the percentage of CUs with these programs has increased. In 2002, the percentages were 39% (high LTV), 48% (“A” credit loans), and 35% (first time buyer) * Only 14% of the lenders price their mortgage loans taking into account the number of other products and services that the member has at their credit union. This percentage did not change significantly over the previous year. Source: CUNA Mutual Group

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