Weekly Credit Union updates

Looking into the fresh news from the Credit Union circuit.

• Credit Union Loans Lag in May

Balance growth from April to May is below normal because of sluggish gains for autos and first mortgages. Savings fell and loan portfolios grew sluggishly from April to May for credit unions as gains for car loans and first mortgages were weaker than normal, according to a CUNA report released Wednesday.

CUNA’s Monthly Credit Union Estimates showed gains were stronger than usual for credit cards, signature loans and home equity lines of credit. But since they together account for less than 17% of loans, they weren’t enough to change the overall trend.

• Consumer credit rises $7.2B in May

Total consumer credit grew 1.8 percent in May at a seasonally-adjusted, annualized rate and is up 12.9 percent compared to a year ago. NAFCU (National Association of Federally-Insured Credit Unions) Chief Economist and Vice President of Research Curt Long noted the $7.2 billion increase is “the smallest increase in the last 18 months.” In addition, while revolving credit – primarily credit cards – rose 8.2 percent, it decelerated from 13.8 percent growth in April. Non-revolving credit – primarily auto and education loans – fell 0.4 percent in May and is up 4.1 percent from a year ago.

• Credit Union National Association Finds Credit Unions Lose Auto Share

CUNA analyzed Equifax ’s analytic dataset, which was complete through February 2023, and found non-prime borrowers at credit unions achieve life-of-loan savings between $5,700 and $11,000 compared with similar borrowers at banks for a $40,000 loan over 72 months. They save between $2,800 and $13,000 compared to borrowers at auto finance companies.

• California Credit Union Announces Large Expansion

California Credit Union said Tuesday it has expanded its potential field of membership by millions through changes in its charter that add two new counties and allow it to serve all residents of Los Angeles County, where it is based. The changes encompass three counties with about 12.7 million people in 2022 — nearly 4% of the U.S. population and a third of California’s.

• State Employees’credit Union 's new CEO talks branches, lending and a 'measured' approach to tech

State Employees Credit Union in Raleigh, North Carolina, may be the second-largest credit union in the U.S. by assets, but it still has plenty of room to grow. The $50.8 billion-asset credit union appointed a new CEO last month, with a plan to get the institution caught up to its peers in its use of technology while also keeping the pace of growth of its branch footprint.

• Credit union in Michigan brings mortgage aid to members in Nevada

Rising interest rates and higher home prices have left many low- to moderate-income families in Nevada out of the homebuying market. United Federal Credit Union in Saint Joseph, Michigan, is addressing the affordability gap through a new partnership. The $4 billion-asset United debuted its partnership with the Nevada Housing Division last month, offering members in the state down-payment assistance through the agency's Home Is Possible for First-Time Homebuyers program.

Source : Cutimes, NAFCU, CU Insights, American Banker