Credit unions have seen new loan originations increase by nearly 10% over the last few quarters. The increases are in auto loans, including Kansas car loans, and new mortgages, showing a sign of health in a sluggish economy. Some industry insiders are skeptical of the increases though.
Brian Turner, director of advisory services at Southwest Corporate Investment Services, said he is ”cautiously optimistic.” Loans had declined at the end of 2010 and, if you averaged these declines with recent increases, the new originations only grew by 0.8%. That means that new loans are not keeping up with the number of loans that are being paid off, charged off, or refinanced. The good news is that the number of delinquencies, repossessions, and charge offs are declining, allowing individual lenders to show a more profitable portfolio.
While some industry insiders remain cautious about the lending health of America, the numbers are showing a growing consumer confidence. That confidence is what has fueled every economic recovery in history.