The changing requirements for mortgage issuing have led CU Members Mortgage, one of the leading mortgage issuing firms with credit union partners, to restructure its operations.
The firm said its four regional offices will continue to handle the origination of home loans with credit unions partners and their members, but the firm is centralizing some of the disclosure and regulatory functions in its Dallas headquarters.
"In the last few years, as new government regulations and demands for stricter compliance have been mandated, we recognized that balancing these demands made mortgage lending more challenging," stated Linda Clampitt, Senior Vice President of CU Members Mortgage. "However, those challenges won’t prevent us from providing the very best mortgage lending experience for all credit union members."
According to Clampitt, CU Members Mortgage reorganized to streamline daily processes for managing regulation and compliance changes and concentrate efforts to heighten the member experience.
"CU Members Mortgage restructured a strong team of professionals who will focus completely on the specific needs of each credit union partner and guide them through the next set of regulation and compliance changes. This new structure provides the accountability and the structure necessary to meet the challenges of the more rigid mortgage lending environment," she added.
As part of this restructuring process, CU Members Mortgage divided its partnership levels to focus on its Mortgage Ease I and II partners, which it now refers to as the Direct Lending department, and our Mortgage Ease III and IV partners, now referred to as the Correspondent Lending department.
So called "direct lending" credit unions have mortgages issued by CU Members Mortgage on their behalf but in the name of CU Members Mortgage. In that circumstance, CU Members Mortgage bears the regulatory burden for the disclosure and fee guarantees that are part of the mortgage process. CU Members Mortgage funds mortgages that so-called correspondent credit unions issue in their own names and, in those circumstances, the credit unions bears the responsibility for the disclosures and the fee guarantees.
"We appreciate that as the industry changes, we too must change, and that includes almost every aspect of the way we do business. Accountability and solid delivery on clearly defined expectations is our guiding compass as we navigate the treacherous waters of mortgage lending in the year 2011," Clampitt said.