America’s credit unions play an integral role in helping working families achieve homeownership, CUNA and NAFCU wrote to a House Financial Services subcommittee in advance of its hearing on housing affordability.
“Credit unions support legislation and policy decisions that would increase the supply of safe, affordable, and reasonably resilient housing, including efforts to make it easier for homebuilders and homebuyers to use manufactured housing to reduce the housing shortage,” the letter reads.
Credit unions originated a higher share of purchase loans to Black and Hispanic borrowers than banks did (17.6% versus 15.5%) according to 2022 Home Mortgage Disclosure Act data. Over 17% of credit union originations were in low- and moderate-income census tracts, which was also higher than banks (15.9%).
The median interest rate for 30-year mortgages among prime borrowers at credit unions is notably lower than that at banks and mortgage companies, according to lending data from the first quarter of 2023, a trend that holds true for urban and rural borrowers, not just prime borrowers.
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