Credit union economists agree on why credit unions are booking more mortgages on their balance sheets: Secondary market prices are discounted and consumer loans not only bring credit risk, but demand is low.
However, those who advise credit union financial managers disagree whether holding mortgages is good balance-sheet strategy.
NAFCU Chief Economist Tun Wai said he's warning credit unions about interest rate risk this week during sessions at his trade organization's annual conference. Wai predicted the Fed funds rate will remain at 0.25% for the rest of the year, but at some point, cost of funds will rise.
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