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NAFCU survey: Nearly half of all credit unions to quit offering non-qualified mortgages

NAFCU_logo_editedA recent survey by the National Association of Federal Credit Union’s Economic and CU Monitor found that 44 percent of credit unions plan to quit offering loans that are not “qualified mortgages” under the CFPB’s ability-to-repay rule.

Nearly 93 percent of respondents said regulatory burdens have increased under Dodd-Frank, and 88 percent said compliance costs have also increased.

Seventy-one percent of respondents said that they would be able to offer lower member fees in the absence of Dodd-Frank, and nearly 58 percent said they would be able to enhance existing services or offer new ones.

More than one-third of respondents said they originated loans last year that would not meet the CFPB’s definition of a QM.

Of the 76.2 percent of respondents that service mortgages, a majority said set-up costs under the QM rule will total less than $10,000, while 11.5 percent said initial set-up costs are expected to exceed $50,000. Seven percent expect ongoing costs to exceed $50,000.

The CFPB’s ability-to-repay–or qualified mortgage–rule requires lenders to determine whether a potential borrower can afford to pay on their debt obligations before offering certain types of loans.

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