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Home ownership remains one of the best assets on which members build personal wealth and encouraging signs indicate the housing market is slowly recovering. Lower interest rates continue to entice members to refinance to improve their situation and home purchasing activity is on the rise. However, obstacles are closing in on credit union mortgage lending in the form of new rules and regulations.
While most of these regulations are well-intended and designed to protect consumers from abusive lenders, they will punish credit unions for the sins of others. Some of these requirements may already be managed within a credit union's current structure, but most will present some challenges.
Already in 2013, there have been a number of new rules handed down from the CFPB including:
Credit unions leaders need to realize these changes not only relate to first mortgages, but can also relate to second mortgages. And while some of the rules have exemptions, many do not.
Compliance in real estate lending is more important than ever. Lending, lending operations, and staff must comply or face much stiffer penalties. So how can credit unions meet these challenges head on?
Credit unions have made strong gains in member mortgage lending. Those who have chosen to partner with mortgage lending CUSOs like myCUmortgage, benefit from built-in compliance expertise and monitoring, which eases their burden.
Regardless of the option or options your credit union chooses, sign up for alerts from the CFPB at consumerfinance.gov to stay informed. Credit unions have a choice. They can either allow these new compliance issues to hinder their progress, or they can take them on and meet members’ home loan needs the credit union way.
For more information, visit mycooportunity.com.
This sponsored content article is provided to the credit union community for shared insights and knowledge from a recognized solutions provider in the industry. Please note that the views and opinions offered here do not reflect those of Callahan & Associates, and Callahan does not endorse vendors or the solutions they offer.
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March 11, 2013
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