WASHINGTON — The economy is in “upheaval,” institutions are failing or retreating from secondary markets and yet credit unions are holding up well and indeed “are winning this revolution” particularly in mortgages, concludes a Callahan & Associates report issued this month.

In an upbeat assessment of the CU role, the quarterly “Credit Union Strategy & Performance” report issued two weeks ago by the Washington consulting firm, found CU mortgage originations “are up 53% versus he '07 first quarter–in a period when national mortgage volume dropped 7%.”

Moreover, said the report, CUs had the highest ever first quarter total origination at $61 million and that average ROA of 60 basis points “exceeded all other financial institutions.”

In a statement accompanying the report, Chip Flson, president, said the withdrawal of many institutions “from whole areas of the economy” has created “channel destruction, especially evident in mortgages.”

“We will not return to the 'status quo,' forecast Filson considering “consumers want trusted relationships” that CUs are providing.

“As balance sheet lenders, credit unions are not subject to the constraints imposed by the secondary markets,” he observed. “Moreover, their ability to provide member solutions when difficulties occur has given numerous individuals facing credit challenges new hope and opportunity.”