Print
Maine credit unions were represented at an October 28 meeting of the Consensus Economic Forecasting Commission (CEFC), an independent group of economists who forecast Maine’s economy. April Gleason, Chief Lending Officer for University Credit Union (UCU), provided the Commission an overview of the mortgage industry. Todd Mason, President and CEO of the League, offered an update on the credit union industry. Reports were also provided by representatives from the energy, hospitality, hospital, accounting, and real estate industries.
In addition to her role at UCU, Gleason also serves on the Board of the Maine Association of Mortgage Professionals and is the credit union representative for hoMEworks, a nonprofit group dedicated to consumer homebuyer education. Her report highlighted the dramatic change in mortgage lending due to a rising interest rate environment. She noted that the number of loans being refinanced has reduced to extremely low levels—down from what was a historic high. Gleason also commented that the number of new purchase mortgages has also declined, raising concerns about the affordability and availability of housing in the state.
Mason reported that Maine credit unions are strong, but warned that the economy and Maine’s flat population rate are slowing growth, giving reason for caution as we move into 2023. He informed the CEFC that member delinquency rates remain low at 0.48% as of June 30, but are up six basis points from the prior quarter and are being watched with concern in the event they continue to trend upward. He also commented that workforce issues remain a challenge. Credit unions are experiencing significant increases in overall wages due to the competition for talent and shifts in preferences for remote work.
He completed his comments by sharing that Maine credit unions are committed to supporting consumers and small businesses and are prepared to help Mainers if there is recession by providing affordable financial services.