January 23, 2013
Because credit unions already generally abide by new final qualified mortgage and ability-to-repay rules released Jan. 10 by the Consumer Financial Protection Bureau, the most difficult compliance burden will be to document the process, said John Bundy, compliance manager for CUNA Mutual.
“Credit unions may already have underwriting that looks like this, but now they’ll have to document it, and formalize those good practices so they can prove they’re in compliance,” he said.
However, he said the “added layer of bureaucracy” may make credit unions think twice about entering the mortgage business or increasing market share.
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