Is Consumer Spending Hitting Credit Union Sweet Spot?

August 17, 2015 at 7:55 am Leave a comment

The American consumer is still cautious about taking on more debt, but the spending they are doing is making credit unions an even more attractive option.

On what am I basing this pronouncement? The New York Federal Reserve released its quarterly report on consumer spending on August 13th. It indicates that auto loan origination reached a ten-year high at $119 billion. America’s aggregate auto loan balance now stands at $1 trillion. Credit unions have seen a surge in auto loans over the last year and these statistics would seem to indicate that the surge is continuing.

Another bright spot for credit unions has to do with mortgage loan originations. According to a survey, credit unions share of mortgage originations increased from 7% to 11% comparing the first quarter of 2013 with that of 2015. What interests me about this statistic is that the surge in credit union home lending is occurring even as banks continue to impose tougher lending standards on home loan applicants.

According to the consumer report, less than 8% of new mortgage originations were given to borrowers with credit scores below 660. The TransUnion survey speculates that credit unions, having lent more prudently during the recession, are now better positioned than their banking counterparts to make mortgage loans.

Are EMV Cards Being Skimmed

Krebs on Security is reporting that hackers have come up with a creative way of skimming information from EMV Chip cards. The ever reliable Krebs reports that Mexican authorities have discovered an ATM skimming device that is inserted into an ATM and is capable of recording the data that is transmitted between an EMV chip and the ATM. This is further evidence that anyone who thinks of chip-based technology as a silver bullet to prevent card fraud is sadly mistaken.

Entry filed under: Economy, Mortgage Lending. Tags: , , .

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Authored By:

Henry Meier, Esq., General Counsel, New York Credit Union Association.

The views Henry expresses are Henry’s alone and do not necessarily reflect the views of the Association.

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