NATIONAL HARBOR, MD (October 4, 2023) |
National Credit Union Administration Chairman Todd M. Harper spoke at the American Credit Union Mortgage Association’s Annual Conference today. During his remarks, Chairman Harper discussed several hurdles affecting the American consumer’s ability to purchase a home, maintain a balanced household budget, and gain fair and equal access to credit. These issues include rising interest rates, ongoing issues of affordable housing, and continuing appraisal bias and disparities in mortgage lending. Additionally, Chairman Harper noted growing signs of financial stress in households.
“Over the last few years, credit unions have actively originated first and second liens, including home equity lines of credit,” said Chairman Harper. “Notably, outstanding junior liens in the credit union industry grew about 34 percent over the last four quarters. This increase in home equity loans and junior liens is both good and bad. While credit unions are meeting their members’ needs, which is positive, I’m concerned about what it means on the borrower’s side and whether the higher volume in HELOCs and junior liens is indicative of increased levels of household financial stress.”