WINSTON-SALEM, N.C. -- While mortgage originations are down atbanks and brokers and headlines highlighting staff layoffs are thenorm, credit unions are reporting increased mortgage loanapplications and even adding staff to meet the demand. One NorthCarolina-based credit union said it's all a matter of trust.

First-mortgage loan originations by the nation's credit unionssurged during the first six months of 2008, up 40% over the sameperiod in 2007, according to data provided by Callahan &Associates.

The brisk volume occurred despite an economy flirting with arecession and a slumping mortgage origination market, which is 17%below 2007 in originations.

"Credit unions continue to be a bright spot in our nation'sfinancial services market. Growth in all key balance sheetcategories is accelerating," Jay Johnson, Callahan's executive vicepresident, said in a written statement.

The financial organizations are showing their ability to betrusted financial advisers for the long-term benefit of theirmembers--an added value in these uncertain economic times, Johnsoncontinued.

Truliant Federal Credit Union is one CU that's counting on thebenefits of trust and relationship banking to continue to increaseits market share.

Truliant's closed mortgage loans jumped 39% for the first halfof 2008 over the same period last year. "Our mortgage departmentstays extremely busy," Marc Schaefer, Truliant president/CEO,said.

Although Truliant is in the midst of a large-scale brandingcampaign (Credit Union Times May 21, 2008), Troy Martens,Truliant's director of consumer and real estate lending, said thatthe uptick in mortgage lending also stems from the trust thatmembers have for their credit unions.

Martens emphasized that the North Carolina-based credit unionshied away from subprime lending, often foregoing profitable butunfriendly-to-consumer loan products to put its loan applicantsinto affordable mortgages.

Schaefer explained, "We take the necessary steps and time toanalyze each member's needs to ensure they understand all of theiroptions and the costs associated with each. By placing thisinformation within the context of all their financial needs, wehelp them purchase a home that they can both enjoy and afford."

Martens also said the credit union puts a lot of effort intoeducating its members--all of which combine to build long-termfinancial relationships with consumers. "We want people to trustus," he concluded.

As a result, Truliant has increased its mortgage lending and itsmortgage lending staff during one of the worst real estatedownturns in years.

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