The chairman of the National Credit Union Administration (NCUA) discussed the housing market and consumer challenges, among other topics, at the American Credit Union Mortgage Association’s 2023 Annual Conference last week.
“Today, credit unions hold about 5 percent of all outstanding mortgage debt in the U.S., including a large and growing percentage of second mortgages. While this market share is small when compared to that of banks and non-bank lenders, credit unions play an important role in fostering home ownership in communities nationwide, especially in rural or underserved areas and communities often overlooked by traditional financial institutions,” NCUA Chairman Todd Harper said at the conference.
Nevertheless, he added, there remain several hurdles affecting the American consumer’s ability to purchase a home, maintain a balanced budget, and gain fair and equal access to credit.
“These challenges and how they impact credit union performance, and the regulatory environment are the focus of my remarks today,” Harper said.
Among the other issues he addressed, Harper talked about the “complicated” housing market, which features “relatively solid” mortgage performance, but higher mortgage rates and low inventory. He also said NCUA has seen signs of a “significant financial strain in household budgets,” including rising delinquency rates for various consumer loans, including auto loans and credit cards.
In addition, Harper talked about appraisal bias and NCUA’s efforts to combat it, and the importance of consumer financial protection.