Credit Union Originations Down While Balances Continue to Rise
- Existing credit balances continue to grow
- Fixed-rate home equity loans saw an 18% YoY increase
- Credit unions have a strong market share in auto lending and HELOCs
- Delinquency rates remain flat among credit union borrowers at 0.78%
- High interest rates depress new credit union credit account originations
- Mortgage originations are down nearly 60% YoY
- HELOCs have seen a 14% YoY origination decline
TransUnion’s Q3 2023 Credit Union Market Perspectives Report explores the current state of consumer credit and its impact on credit unions
CHICAGO, Sept. 14, 2023 (GLOBE NEWSWIRE) -- The newly released Q3 Credit Union Market Perspectives Report from TransUnion (NYSE: TRU) shows increasingly high interest rates have depressed new credit union credit account originations. Yet, borrowers continue to take advantage of existing credit lines as balances across most credit products continue to grow, with personal loans and home equity loans leading the way.
“Inflation and cost-of-living challenges continue to result in many credit union members using credit products as a way to get by, and this can be seen in the continued growth in balances in existing accounts,” said Sean Flynn, senior director of community financial institutions at TransUnion. “At the same time, a consistent trend of rising interest rates over the last year has led many of those same consumers to avoid originating new loans and lines of credit in favor of leveraging existing ones they already have. This has been particularly the case in the mortgage market, where originations are down significantly from where they were one year ago.”
While mortgage balances have grown more than
Credit Union Originations Are Down for Most Credit Products YoY
Product | Total Balance Growth (% YoY) | Origination Growth (% YoY) | Delinquency Rate (Point-in-Time) |
Bankcard | |||
Auto Loans | - | ||
Mortgages | - | ||
HELOCs | - | ||
HELoans | |||
Personal Loan | - |
Regarding market share, credit unions continue to maintain a strong foothold in auto lending and HELOCs, at
“Credit unions continue to grow their market presence insofar as auto lending and HELOC originations as consumers seek out competitive rates in this high interest rate economy,” said Flynn. “The relative stability of the delinquency rate among credit union borrowers has played a key role in helping to ensure their rates remain attractive to borrowers relative to rates as a whole.”
Delinquency Stability Extends Across Credit Union Credit Portfolio
Despite the challenges being faced by consumers in this high inflation economic environment, delinquencies continue to remain flat among credit union borrowers, at
Among individual credit products, HELOCs saw the lowest 60+ DPD delinquency rates among credit union borrowers at
To learn more, visit the Q3 Credit Union Market Perspectives Report.
About TransUnion (NYSE:TRU)
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Contact | Dave Blumberg |
TransUnion | |
david.blumberg@transunion.com | |
Telephone | 312-972-6646 |