HealthScore Chart of the Week – Mortgage Loans

Time for an update to our Credit Union Industry HealthScore Chart of the Week series. Our HealthScore system calculates overall credit union health by scoring/grading performance across eleven different key ratios. This week’s HealthScore Chart of the Week focuses on credit union mortgages, specifically looking at the comparison of individual credit union HealthScores to credit union mortgage portfolio balances.

The chart below plots individual credit union HealthScores by size of mortgage portfolio. As of June, 2013 data (the latest available as of this post), the average industry score is  2.402. It seems the credit unions with the largest portfolios generally possess better overall health than average credit unions.

Due to the size disparity between the largest and smallest credit unions, it is difficult to determine the range of portfolio sizes vs score distribution so here is another look at the same data – excluding credit unions with portfolio balances in excess of $3M.

The are a handful of credit unions regulators are likely concerned about, but the majority of credit unions in the mortgage business have pretty solid health. Of course the charts and scores do not quite gauge interest rate risk so there is the potential that, for the truly unprepared, what contributes to health today could lead to an unhealthy existence tomorrow.

Comments and interpretations welcome. To share your thoughts, use the comments feature below.

Interested in learning more about where your credit union stands in relation to Glatt Consulting’s Credit Union Industry HealthScore? Schedule an appointment to discuss your scores. You may also want to learn more about our approach to credit union strategy consulting.

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