WASHINGTON — With the recent release of the 2006 Home Mortgage Disclosure Act data, credit union trade group economists are applauding the fact that credit unions are approving more mortgages to low-income and minority applicants than other lenders.

NAFCU President/CEO Fred Becker touted the fact that, upon further analysis by his research team, "The findings of 2006 Home Mortgage Disclosure Act (HMDA) data demonstrate once again that credit unions are a preferred choice in the financial services industry, especially for people of modest means seeking mortgages. Credit unions are more likely to approve minority applicants, and they are more likely to offer loans at a lower rate of interest."

According to NAFCU, of minority applicants making less than $40,000, credit unions had a 58% approval rating compared to 49% for banks and 51% for thrifts. Among all applicants earning under $40,000, credit unions achieved a 75% approval rating compared with banks and thrifts at 61% and 63%, respectively. Mortgages (1-4 family) to households with less than $40,000 in income accounted for 17.7% of credit union lending compared to 13.7% for banks and 10.8% for thrifts.