CUNA Survey on New Mortgage Rules Implementation

Help us Assess the Impact of the New Rules




CUNA continues to press for improvements in the mortgage rules adopted by the CFPB that take effect next January. Your responses will greatly aid our continuing efforts with the CFPB.

Please respond by September 27, 2013. If you are not able to answer some questions, please answer those you can. Any input will be helpful to us.

Please note: When typing responses to fill-in-the-blank questions, please do not hit the [Enter] key. Doing so will submit the survey before you have finished it.


1. What is your credit union's mortgage origination volume per year?








2a. Mortgage Servicing Rules Background - please be aware that:
For the Regulation Z rule: For the Regulation X rule:
Based on these definitions, does your credit union currently service mortgage loans (i.e., collect the payments for covered mortgage loans that total 5,000 per year)?



2b. If you currently service mortgage loans, how many loans does your credit union currently service?





3a. What areas of the new mortgage rules implementation do you find will be the most difficult / time-consuming to comply with? (For example, setting up procedures to track and show compliance with the document collection and support for the debt-to-income (DTI) and points and fees calculations, as required by the Ability to Repay rules, and periodic statement requirements under the Mortgage Servicing rules.)

Please be as specific as possible in describing your concerns.
(List up to five, in order, with your top concern as “Concern1", the area of second-most concern to you as “Concern2", etc., and then list any other concerns beyond the top five under “Other”.)

Concern1.

Concern2.

Concern3.

Concern4.

Concern5.

Other.

3b. Are there any specific requirements from the CFPB's mortgage lending rules that your credit union will be unable to comply with by January 2014? If so, please explain.

4a. Will the required year-end accounting and tax reporting at your credit union take up a significant amount of resources that would not be available for other initiatives, including the mortgage rules?



4b. If you answered yes to Q.4a, please provide an estimate of the time required for year-end accounting and tax reporting. Please also provide an estimate of the available time that could be devoted to changes required to comply with the mortgage lending rules.

5a. In light of the regulatory changes, does your credit union plan to discontinue or reduce the availability of certain mortgage loan products or services?





5b. If your credit union will discontinue and/or reduce any mortgage loan products/services, please describe which products or services you plan to discontinue or reduce.

6a. At your credit union:

6b. Are you planning to hire additional credit union staff as a result of regulatory changes?



6c. If you are planning to hire additional staff, please tell us how many additional staff you are planning to hire as a result of regulatory changes, and estimate the costs to hire these additional staff.

7. Does your credit union have a year-end blackout period for IT changes, including changes related to the mortgage rules? if yes, please tell us how long the blackout period is.





8. Does your credit union use or plan to use third-party providers (e.g., data processor, forms supplier, other vendors) and/or consultants to help with the new mortgage rules implementation?




9a. When do you expect your vendor(s) / consultant(s) will be able to complete all their changes to comply with the new mortgage rules, including IT, programming, and software?
Not sure
(vendor
has not
indicated)


September to
October 2013


November to
December 2013


After
January 2014
Data processors
Forms supplier
Consultant(s)
Other

9b. If it will be after January 2014 for any of your vendors / consultants to complete all their changes, what are the specific mortgage loan requirements that your vendor will not be able to complete the programming changes for before January 2014?

10. After your vendor(s) / consultant(s) has completed the changes, how long will your credit union need to test, and then implement these changes internally?





11. How long will your credit union need to train staff on the changes?





12a. In total, please estimate how much your credit union will spend (or plans to spend) to comply with these new rules.






12b. For spending specifically on vendors such as data processors, forms suppliers, and/or consultant fees, please estimate how much your credit union will spend on such services.






13a. Under the CFPB’s Ability-to-Repay (ATR) / Qualified Mortgage (QM) final rule that will be effective on January 10, 2014, credit unions and other creditors that follow the QM standards will be afforded a “safe harbor” for compliance with the ATR provisions. Creditors will be entitled to greater legal protection for QMs than for other mortgage loans should the creditor be sued by a consumer for noncompliance with the ATR provisions.

A QM must generally meet these requirements:

Also, a reasonable, good-faith ATR evaluation must include these eight underwriting factors:

The QM rule also provides:
If you do not meet the small creditor exception discussed above, or are otherwise not exempt under the QM rule, which of the following best describes what your credit union will do in light of these Ability-to-Repay and QM final rules?





13b. If you do meet the small creditor exception discussed above, or are otherwise exempt under the QM rule, which of the following best describes what your credit union will do in light of these Ability-to-Repay and QM final rules?





13c. What is the estimated percentage of your loan volume that falls outside the definition of QM loans?










14a. Do you have concerns that compliance with the mortgage rules may have implications for “disparate impact” under the fair lending rules? Please describe.

14b. Please also share any other comments or suggestions you may have.

15. What is your credit union's asset size?










16. Contact Information (Optional).


Thank you very much from all of us in CUNA's Regulatory Advocacy Department for your efforts in responding.