Nearly half of members responding to a National
Association of Federal Credit Unions survey say they are already planning to drop
loans from their product line that do not meet Qualified Mortgage (QM)
guidelines. Members were asked about a
range of impacts anticipated under new Dodd-Frank Act rules being implemented
by the Consumer Financial Protection Bureau in a survey conducted for the May Economic and CU Monitor.
Respondents said they were getting a
head start on complying with the new Ability-to-Repay/QM mortgage rule. A large majority, 92.9 percent, said they
have seen regulatory burdens rise under the rule and 88.1 percent reported
increasing compliance costs.
If the regulatory and compliance issues
under Dodd-Frank did not exist, 71.1 percent of the respondents said they could
offer lower fees to members and 57.9 percent said they could offer more
services or better ones.
In addition to the 44 percent who said
they plan to stop originating non-QM loans altogether, another 44 percent said
they intend to reduce the numbers of those loans. Over a third said that they had originated
loans in 2012 that would not comply with the new rule.
Of the 76 percent of respondents who
said they service loans most said their set-up costs under the CFPB rules will
be under $10,000 but 11.5 percent estimated set up costs at over $50,000 and
7.1 percent expect ongoing costs to exceed that amount.