Summit Credit Union #1 for Wisconsin Home Loans in 2021

Wisconsin state flag. (Source: AdobeStock)

Summit Credit Union said Tuesday that data from HMDA showed it was Wisconsin’s largest mortgage lender last year — at least by a bit, for a little while.

Kim Sponem, president/CEO of Summit, said the credit union has been the largest mortgage lender for more than a decade in Dane County, which includes its headquarters in Madison and where HMDA data showed that Summit had done 57% of the $2.4 billion in residential loans last year in Wisconsin.

“We are proud to be the No. 1 home loaner in the state of Wisconsin,” Sponem said. “We will continue to help thousands of members buy their first home or refinance their current home so they can save thousands of dollars on their mortgage payments.”

Kim Spoonem Kim Spoonem

What Summit’s press release didn’t say is that while Summit ($4.9 billion in assets, 227,353 members as of March 31) moved UW Credit Union of Madison ($5 billion , 314,472 members) by a 10% margin, NCUA data showed UW Credit Union reclaimed the top spot in the first quarter.

Home Mortgage Disclosure Act data is rich in loan-level detail and is a good way to measure market share among all types of lenders. For credit unions, its results are close to those reported by the NCUA when HMDA data is checked to eliminate commercial loans.

However, HMDA data is only reported once a year and the results are lagged: data for 2021 was released on June 16. And other differences may arise as HMDA data is based on applications and NCUA data is based on closures.

In a CU time analysis of HMDA data, loan originations were limited to those for one- to four-unit dwellings where the borrower intended to use the home as a primary or secondary residence. It was further reduced to exclude lending “primarily for business or commercial purposes”.

There were few commercial loans to eliminate for Summit and UW Credit Union. It made a difference at Landmark Credit Union of Madison ($6.1 billion, 371,394 members), where business lending is big. While Landmark ranked No. 5 for total issuance in Wisconsin, it was No. 6 for residential loans.

Data from HMDA showed that the three credit unions made more than 99% of their loans in Wisconsin last year.

The data also showed that credit unions accounted for 24% of the value of residential starts in the state in last year’s HMDA sample, up from 25% in 2020. This is a sample because small institutions are exempt from reporting. These reports may differ from year to year, but in this analysis, lenders were only included if they reported both years.

Residential loans from the 192 credit unions in the sample fell 3% to $12.9 billion, while loans from the other 664 lenders rose 2.2% to $41.6 billion. of dollars.

The results showed that three of Wisconsin’s top six residential lenders in 2021 were credit unions:

1. Credit Union of the Summit issued $2.6 billion in residential loans in 2021, up 6.5%, according to HMDA data. The NCUA showed its residential origins for the first quarter were $467 million, down 20% from the first quarter of 2021.

2. UW Credit Union of Madison, Wis., issued $2.4 billion in residential loans in 2021, down 8.9%, according to HMDA data. Data from the NCUA showed its first-quarter creations fell 34% to $471 million.

3. Rocket Mortgage Detroit ($32.8 billion in assets) issued $2.2 billion in residential loans in 2021, up 7.3%, according to HMDA data. Nationally, its volume fell 48% in the first quarter, according to its earnings report.

4. Associated Bank of Green Bay, Wis. ($34.5 billion in assets) issued $2.1 billion in residential loans in 2021, down 2.2%, according to HMDA data.

5. Fairway Independent Mortgage Corp. of Madison, Wis., issued $1.7 billion in residential loans in 2021, up 8.3%, according to HMDA data.

6. Historic Credit Union issued $1.6 billion in residential loans in 2021, down 9.4%, according to HMDA data. NCUA data showed first-quarter loans fell 49% to $221.8 million.

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