WASHINGTON, DC (October 10, 2017) — Total mortgage originations climbed from $113.0 billion in 2015 to $130.4 billion in 2016, according to Callahan & Associates analysis of the 2016 Home Mortgage Disclosure Act (HMDA) data released this month. HMDA takes in account data from credit unions, banks, and savings institutions as well as Housing and Urban Development (HUD) reporting lenders.
The US mortgage market saw origination totals increase 18.0 percent from 2015 to 2016 reaching nearly $2.2 trillion by year-end. HUD reporting lenders (mortgage finance companies) were the segment to post the strongest gains in 2016, with origination balances growing 23.7 percent to surpass $982.0 billion.
Despite strong origination growth, credit unions saw a modest decrease in market share from 6.1 percent in 2015 to 6.0 percent in 2016 as mortgage finance lenders picked up additional 2.1 percent of the consumer real estate market. Banks reported a slightly larger decline in market share, falling 1.9 percentage points to 49.0 percent in 2016.
Purchase mortgages continued to be the most popular mortgage type in 2016, accounting for 49.7 percent of total originations, their share of the total origination market fell 1.8 percentage points from 2015 despite purchase mortgage funding increasing 13.9 percent. Accordingly, refinance originations increased their share, up 1.4 percentage points, growing $180.9 billion annually to $1.0 trillion. Credit union originations of purchases and refinancings expanded 11.3 percent and 17.7 percent, respectively, in 2016.
“Despite moderate declines in market share, credit unions are continuing to serve the needs of their members in an increasingly competitive market, outpacing traditional bank lenders in growth of purchase mortgages while posting strong gains in the refinancing segment”, said Sam Taft, senior director of industry analysis at Callahan.
Callahan & Associates analyzes the more than 19 million HMDA data points using MortgageAnalyzer. Callahan scrubs, aggregates, and processes the data delivering an effective, efficient and contextual platform for understanding mortgage markets and opportunities. MortgageAnalyzer also provides market intelligence on non-depository institutions such as online and non-traditional retailers.
Callahan & Associates is hosting a free webinar about the trends coming out of this year’s HMDA data release on October 24 at 2:00 PM eastern time. Register now to reserve your seat.
For more information about credit union mortgage data or MortgageAnalyzer, contact Victoria Taylor at vtaylor@callahan.com.
For more than 35 years, Callahan & Associates has helped credit union leaders identify strategic growth opportunities that increase member value. We create meaningful dialogue, connect people, provide counsel, and help organizations thrive through our competitive analytics, best-practice media, leadership consulting, and collaborative ventures. Our clients grow assets, members, shares, and loans faster than industry averages. Learn more at www.callahan.com.
Victoria Taylor
vtaylor@callahan.com
