The nationalmortgagenews reports in a survey of credit unions responding to the QM Rule issued by the Consumer Financial Protection Bureau (CFPB), 44 percent say they will no longer originate non-qualified mortgages and another 44 percent will reduce originations. In the survey conducted by the National Association of Federal Credit Unions (NAFCU) and CU Monitor Survey, 51.2 percent say they have begun adhering to the new rules in anticipation of the Jan. 2014 implementation date; 37.5 percent originated loans in 2012 that would not meet the QM criteria. The 76.2 percent of respondents that service mortgages expect the CFPB’s mortgage servicing requirements to run around $10k in initial costs and ongoing expenses, while 11.5 percent expect initial setup above $50k. Of the 23.3 percent who applied for a waiver 89 percent were granted, but 41.7 percent say the process was difficult. As MHProNews reported here May 16, in a speech to the National Association of Realtors (NAR), CFPB Director Richard Cordray said credit unions have a tradition of making good loans that may not qualify under the QM Rule, and they should continue doing so with borrowers that present a reasonable risk.
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