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CU Snapshot

 Apr '18Mar '18
# of CUs5,7245,727
Total Assets
($ billions)
Total Savings
($ billions)
Net Cap.
Loans to Savings82.9%81.5%
Loan Delinq.0.8%0.8%

         Credit Union Indicators

Invest in Loan Quality to Manage Risk

Maximize your return on mortgages with a quality control plan.

The mortgage industry is shifting focus to the loan manufacturing process, emphasizing the importance of data quality—which starts with verifying that data at the outset.

Rather than focusing on the "cost of quality," lending executives should keep their eye on achieving a "return on quality" in the form of reduced risk, says Tom O'Neill, Fannie Mae's credit risk manager for loan quality.

Fannie Mae offers resources to help lenders meet regulatory requirements and manage loan risk, and recently introduced new loan defect reports.

According to O'Neill, credit unions should implement documented quality control plans that:

1. Outline requirements for validating that loans originate in accordance with established policies and procedures. The loans must comply with applicable federal, state, and local laws and regulations, as well as the Fannie Mae Selling Guide.

2. Require loan file reviews before funding loans (prefunding requirements) as well as after loan closing (post-closing reviews).

3. Contain prefunding, post-closing, and discretionary review information, and final defect rate and resolutions.

(Via Credit Union Magazine)