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.