Tuesday, October 22, 2019

Mortgage Market Share By Age Range


Mortgage Market Share By Age Range: What Does The Data Show?
Credit unions excel in open-ended mortgage lending but lose their share of this niche market as borrowers age.
Recently released mortgage data — courtesy of the Home Mortgage Disclosure Act (HMDA) — is a gold mine of insights on industry trends. Callahan & Associates has already written about the relationship-based, open-ended loans now included in the 2018 release and discussed how these loans more accurately reflect how credit unions are assisting their member-borrowers. 

Readers are also likely to be interested in the results of another new, long-desired dataset: Market share across age ranges.  

These trends can help highlight what attracts — and what repels — different generations, allowing credit unions to devise strategies to appeal to a new, young, or up-and-coming membership base.

INSTITUTIONAL MARKET SHARE BY AGE RANGE
FOR U.S. MORTGAGE LENDERS | DATA AS OF 12.31.18
Age
<25
25-34
35-44
45-54
55-64
65-74
75+
Totals
Totals ($000's)
$36,923,380
$363,349,635
$462,654,783
$395,149,835
$279,603,735
$144,705,820
$43,922,895
$1,726,310,083
Credit Unions
7.7%
7.4%
7.7%
8.4%
8.9%
8.0%
6.8%
8.0%
Banks
32.0%
38.0%
43.5%
45.9%
48.9%
50.3%
51.6%
44.3%
HUD
60.3%
54.6%
48.8%
45.7%
42.2%
41.7%
41.6%
47.7%
Consistency is key for credit unions. They hold a larger market share

Consistency is key for credit unions. They hold a larger market share
Consistency is key for credit unions. They hold a larger market share among older borrowers but need to look for ways to build relationships, and market share, among younger ones.


Credit unions hold an average market share of 8.0% for all borrowers (institutional borrowers have been excluded for the purpose of this data examination). Of note, cooperatives are the only lenders to hold------Read more: Mortgage Market Share By Age Range: What Does The Data Show? | Credit Unions http://www.creditunions.com/blogs/industry-insights/mortgage-market-share-by-age-range-what-does-the-data-show/#ixzz635Jq9BSQ

www.ncofcu.org