- Credit unions temporarily experiencing declining revenues from mortgage lending.

- Increasing mortgage rates, pricing some buyers out of the market, with investor concerns about mortgage-backed securities also pushing rates higher.

- Vanishing equity resulting in more foreclosures, depressing home values.

- Those with significant investments in mortgage-backed securities seeing a decline in the value of investment portfolios as even high quality mortgage-backed securities experienced market declines.

Nevertheless, I stated that the long-term future was full of opportunity and very bright for those who took advantage of the crisis. In short, credit unions were a beacon of hope to those looking for a lending institution they could trust. I challenged the audience to work to increase credit unions' 2% share of the mortgage

market–to reach the roundtable's goal of hitting the 10% mark by 2016.

So, where are we today?

The upheaval in the mortgage market still dominates the landscape. Large banks and investment houses have suffered significant losses, some are even undercapitalized. Foreclosures were up 75% in 2007. Inflation is on the rise, yet home prices have dropped. Fannie and Freddie are in conservatorship.

Yet, credit unions are finding the silver lining in the clouds. Just a year later, the credit union percentage of the mortgage market has jumped to 3.6%. A goal that at one time seemed "big, hairy and audacious" now appears to be very achievable.

Congratulations to those credit unions that have taken up the challenge. Recent reports of credit unions participating in one program indicate that mortgage originations are way up this year. In fact, those credit unions doubled their total delivery volume in the last 12 months. The number of loans delivered nearly doubled as well. The average credit scores on these loans went up, too. And loans in underserved areas in this program exceeded those delivered by other entities by almost 15%. Many credit unions are working with members who are in danger of foreclosure to help them keep their homes by restructuring their loans.

Others are actively pursing programs designed to assist homeowners in peril of losing their homes as well as those seeking greater financial education.

Pursuing new mortgage business at this time may seem counterintuitive. A recent report from the Government Accountability Office, however, indicated that an increase in mortgage loans can fuel additional membership growth. Over the next 10 years, the U.S. is expected to create 15 million new households. Echo boomers–people born between 1985 and 2004–are almost as big a group as the baby boomers, and they'll start renting and buying homes over the next decade. And about 68% of the growth in households will be from minorities and new Americans. That's a lot of opportunity for credit unions, especially in underserved markets.

The latest Home Mortgage Disclosure Act data show credit unions' approval rate for lower-income borrowers is higher than at other types of financial institutions. Also, credit unions have a greater percentage of mortgage borrowers with less than $40,000 in income than other institutions.

Helping members address their mortgage challenges personifies what credit unions do best. Our back-to-basics approach, combined with our solid lending and business practices, is bringing greater stability to the marketplace.

The results that credit unions have achieved are proof positive that many new people are discovering the value of credit unions. Based on the figures, credit unions are in fact taking advantage the opportunity that the subprime crisis has created–seizing the day to increase their share of the mortgage market.

Fred R. Becker Jr., is president/CEO of NAFCU in Arlington, Va. He may be reached at 703-522-4775 [email protected]