VIENNA, Va.–Consistent with what credit unions are reporting industry wide, Navy Federal Credit Union is reporting it broke records in mortgage closings and consumer loan originations during the second quarter of this year.
An influx of new members and competitive financial product pricing, combined with a strong jobs market and recovering home values led the credit union to its best quarter yet, with growth continuing into July, Navy Federal said.
July marked the fifth consecutive $1-billion month in mortgage closings, which continues to surge on the strength of first-time buyers. The credit union's top five months (March, April, May, June and July) for mortgage closings have all been within 2015. First mortgages surpassed $1.37 billion in closed loans in June, $986.3 million of which were purchase loans, setting an all-time record for the credit union. Total closed loans in Q2 broke a record of more than $3.6 billion, which is a 100% increase from the same period last year.
Equity lending in Q2 reached $178 million, a 26% increase over Q2 2014. June was the highest single month since August 2008 with more than $66 million in equity loan originations.
Consumer loan originations reported its best quarter in the history of the credit union, at more than $2.6 billion with a growth of $586 million. This surpasses the previous record set in Q3 2014 by 6.7%. The highest origination month ever was set in July at $925 million, breaking the record set in June by more than $9 million.
July saw the highest originations in new and used auto loans, with more than $624 million in originations, breaking the previous record set in June by more than $19 million. Q2 2015 was also the highest quarter on record at more than $1.7 billion in originations.
Signature loans originated in June reached $243 million, breaking the old record set in April 2015 by more than 12%. With a total of over $670 million, signature loans in Q2 broke the previous record quarter by more than $82 million.
"The economy has come a long way since the depths of the 2008-2009 recession and households are benefitting in a big way," said Alan MacEachin, Navy Federal corporate economist. "Rising home values, the best jobs market in years and near-record stock prices have lifted household wealth to all-time highs. Consumers increasingly have the means and confidence to make big-ticket purchases."