Report Reveals Oregon Credit Unions’ Poor
Record of Mortgages to Low-Income Borrowers
Less than one percent of mortgages go to low-income borrowers.
Calls into question “public benefit” in exchange for tax subsidy.
Portland, Ore. – A report analyzing Oregon credit unions’ mortgage lending finds the
industry made 11,775 home mortgage loans in 2013, but less than one percent – 96
mortgages - went to low-income households. Credit unions were granted nonprofit, tax-exempt status in order to serve persons of “modest means,” but recently
released federal data is calling that mission into question.
“The public policy conversation about Oregon’s largest credit unions’ public benefit
needs a reality check,” said Marvin Umholtz, the report’s author. “The largest
Oregon credit unions do not focus on supporting low-income populations or those
of modest means.”
According to new federal data made available through the Home Mortgage
Disclosure Act:
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Of the 11,775 mortgages originated by Oregon credit unions last year, less
than one percent – 96 mortgages - went to low-income borrowers - less than
one percent. 14 percent went to moderate income; 53 percent went to
middle income; 32 percent went to upper income.
Oregon credit unions made 18 mortgage loans on homes of $1 million or
more. OnPoint Community Credit Union, the state’s largest credit union,
made four mortgage loans on homes of $1 million or more.
Oregon’s five largest credit unions averaged only one percent of their
mortgage originations to low-income individuals.
There were seven Oregon credit unions that originated loans to ONLY upper
income individuals.
Other findings:
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Only three percent of Oregon credit union branches are located in lowincome communities.
In the last 14 years, the number of Oregon credit unions has shrunk from 115
to 66 while their combined assets have grown from $7.4 billion to $17
billion. Large credit unions are growing, consolidating and indistinguishable
from community banks.
The top five of Oregon’s 66 credit unions now hold half of the industry’s
assets and have 42 percent of Oregon’s credit union customers. OnPoint is
now the second-largest Oregon-based financial institution.
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The CEO of OnPoint, Rob Stuart, had a 2012 compensation package worth $2
million and that same year Ron Barrick, CEO of Advents Credit Union,
received a $2.5 million retirement distribution.
“Oregon credit unions benefit the state’s economic development, but that is hardly
unique when compared with tax-paying financial institutions that have the same
impact,” said Umholtz. “Given their track record of service to low-income
communities, the question is ‘What public benefit is being provided in exchange for
the industry’s tax subsidy?’”
About Marvin Umholtz
Marvin Umholtz is President & CEO of Umholtz Strategic Planning & Consulting
Services based in Olympia, Washington south of Seattle. He is a 39-year credit union
industry veteran who has held many leadership positions with credit union
organizations and financial services industry vendors during those years. A former
association executive and lobbyist, he candidly shares his credit union industry
knowledge and analysis with public policymakers, financial industry executives, and
vendor companies. Umholtz also writes and distributes CU Strategic Hot Topics, a
“clients and colleagues” newsletter that analyzes the actions of the National Credit
Union Administration (NCUA), the Congress, the Consumer Financial Protection
Bureau (CFPB), the Federal Reserve, the lagging economy, uncertainties in financial
markets, divisive partisan politics, and the growing conflict about the future role of
credit unions in the financial services industry.
For more information about the report or to speak with Marvin Umholtz directly, he
can be reached at (360) 951-9111.
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