St Casimirs Mortgage Minute

Credit Unions Trail Banks in Serving Minority Borrowers

Banks are almost 40 percent more likely to originate home purchase loans to minority borrowers than credit unions, according to the 2013 Home Mortgage Disclosure Act data released last week. The data showed that 16.3 percent of bank home purchase mortgages and 16.5 percent of bank subsidiary home purchase mortgages went to minority borrowers. Only 11.8 percent of credit union home purchase loans went to minority borrowers.

The same pattern existed for refinance loans as 14.6 percent and 13.9 percent of bank and bank subsidiary loans, respectively, went to minority borrowers, while only 10.9 percent of credit union refinance loans went to minority borrowers.

---ABA Daily Newsbytes