Is your credit union ready for what is happening in mortgage banking right now? In this episode of Credit Union Conversations, host Mark Ritter sits down with John Giordano of First Heritage Mortgage Services to break down the real state of mortgage rates, housing inventory, and home affordability in 2026. With over 1,800 active pre-approvals on the books and portfolio loans gaining ground, John reveals why this moment is one of the greatest opportunities credit unions have seen in years and what it takes to seize it.

IN THIS EPISODE:

  • 00:00 John shares his background at First Heritage and how its services are unique
  • 04:15 John’s perspective on why today’s mortgage banking environment is unlike any prior cycle
  • 09:24 How the U.S. housing market has split into nine distinct regional quadrants affecting home buying and loan production
  • 15:35 The strategic shift: why credit unions are choosing portfolio loans over secondary market sales to protect margins
  • 20:30 Record pre-approvals signal strong demand, but housing supply and new construction shortfalls remain critical barriers
  • 26:10 Millennials reversing course from urban living reveals new home affordability and real estate trends

KEY TAKEAWAYS:

  • Mortgage rates began 2026 nearly a full point lower than the prior year, creating a genuine opportunity for credit unions to grow loan production and deepen member home-buying relationships right now.
  • The shift toward portfolio loans is not a trend but a necessary evolution, as razor-thin margins in mortgage banking make the traditional originate-and-sell model far less viable for sustainable credit union revenue.
  • Housing supply remains the core challenge underlying home affordability, with the largest U.S. builders producing fewer than 90,000 units per year, nowhere near enough to meet current real estate demand across the country.

RESOURCE LINKS:

Mark Ritter – LinkedIn
First Heritage – Website
Mortgage Chit Chat – Podcast

Mark Ritter is the CEO of MBFS and an expert in credit unions and business lending. His primary role at MBFS is overseeing the strategy of helping credit unions assist members with business needs and consulting with credit unions on planning the delivery of services to their membership.