Amid all the bad economic news, here's something to cheer: STCU is smashing records for home loans, showing numbers that will surprise many who have read about the national housing slump or heard that money for loans is in short supply.
And in the process, the region's largest credit union has added staff and hired temporary workers, even as other employers have been forced to make reductions.
For first quarter 2009, STCU's real estate team funded 400 mortgages for more than $68 million. That compares to 306 loans for $51 million for the same period last year - figures that had also set records.
With 500 to 600 first-mortgage loans consistently in the pipeline since the start of 2009, it's now taking an average of 52 days for a loan to go from origination to funding, up from 27 days. In response, the STCU real estate team is working long hours and weekends to keep up.
You can improve your chances of gettng the home you want by pre-qualifying through STCU's online Mortgage Center.
"Typically sellers want to see somebody who's pre-approved," said Scott Adkins, STCU vice president of lending.
About 15 percent of the loans are new mortgages to members who are buying homes. The rest are going to members who are refinancing for lower interest rates, bringing their mortgages to STCU from other lenders.
Those numbers appear to be slowly shifting, with an increasing number of new mortgages, Adkins said. That's partly because of the typical spring uptick in the housing market, and partly because STCU members are taking advantage of bargain interest rates and reasonable real estate prices.
Under the federal stimulus package, first-time buyers may qualify for a tax credit of up to $8,000. And STCU offers discounted origination fees for first-time buyers.
Among homeowners who are refinancing, some are getting extra cash to make improvements that may also qualify for energy efficiency tax credits. For instance, some replacement furnaces and windows qualify for a 30 percent tax credit, up to $1,500.
STCU President and CEO Steve Dahlstrom said new and refinanced mortgages help stimulate the economy.
"If people shave hundreds off their monthly mortgage payments, that means they can pay their other bills and make purchases they've had to postpone," he said.
In the troubled economy, many consumers seeking a safe haven have turned to non-profit credit unions, whose volunteer boards of directors are notoriously conservative in their investments. Credit unions are restricted from diversifying into insurance, stocks and real estate that might put their member-owners' money at risk.
Membership in U.S. credit unions last year grew 3.6 percent, to nearly 90 million, according to the Credit Union National Association.
At STCU, membership grew at a record pace of 909 new members a month in 2008, hitting 80,000 total members as of March 31 of this year. STCU will open its 14th branch, at Northtown Square, on May 12.
The credit union hit a milestone of $1 billion in total assets in 2008, ranking among the top 2 percent among credit unions nationwide. It has since grown to more than $1.2 billion in total assets.
STCU's 2008 annual report can be read here.
