(May 13, 2014) -- Good afternoon,
Attached is NAFCU’s May Economic & CU Monitor, which includes results of a special topic survey on Lending – as well as economic data and credit union financial conditions. The survey shows that while credit union lending has improved, new regulations and proposals, including CFPB’s new mortgage rules, threaten to increase costs for credit unions.
Here are some highlights from our survey:
- Survey respondents saw strong member growth in March of 4.5 percent, while year-over-year share growth moderated to 5 percent.
- According to survey respondents, every region expects equal or accelerating overall loan growth during 2014.
- Net interest margins of respondents shrank by 5 basis points in March.
- Respondents’ return on assets declined to 0.81 percent in March, but has increased 3 basis points since December.
- Survey respondents’ average net worth ratio increased one basis point in March to 10.57 percent.
- Survey respondents reported that roughly 13 percent of their 2013 mortgage originations would not have met the new CFPB’s qualified mortgage (QM) criteria.
- Nearly half of respondents (48 percent) said that they would stop originating non-QM loans.
If you’d like further comment from NAFCU Chief Economist Dr. David Carrier, please let me know.
Thank you.
Patty Briotta
Director of Public Relations
National Association of Federal Credit Unions
3138 10th Street North
Arlington, VA 22201
703-842-2820
pbriotta@nafcu.org