The largest financial institution of its kind anticipates that purchase financing will ascend to a record level this year. First-time buyer activity is behind the favorable forecast.
Navy Federal Credit Union originated more than 33,000 residential loans for in excess of $8 billion during all of 2014.
As was the case for most of the industry, business slowed at Navy from the more than $11 billion in production generated in 2013.
But the
Vienna, Virginia-based institution sees a turnaround in store.
“Navy Federal is projecting a record-setting second quarter buoyed by their highest volume of applications in March,” a statement Monday said.
In addition, the credit union “anticipates this to be a record year for purchase volume.”
Behind the optimistic outlook are first-time home buyers and a surge in home sales — helping to push March volume past $1 billion.
Turns out that last month was “the best month in the credit union’s history.”
Year-to-date volume exceeds $2.5 billion.
The 12,000-employee organization said that purchase financing accounts for nearly 60 percent of its mortgage originations.
It’s specialized portfolio products are reportedly designed for the segment of its 5 million members who are first-time military home-buying families.
“They remain the only lender in the market offering a conventional 100 percent financing fixed payment option with no private mortgage insurance,” the financial institution stated about its HomeBuyer’s Choice program
— which was responsible for nearly $0.2 billion of year-to-date production.
Navy Federal Vice President Mortgage Lending Katie Miller has created instructions for the company’s loan officers about how to specifically meet the needs of first-time home buyers, according to the statement.
Navy claims the title of “the world’s largest credit union” with more than $64 billion in assets.
