Roadblocks Hinder Credit Union Housing Finance
The biggest obstacles to credit unions launching or growing a housing finance program are lack of staff, concerns about compliance and a lack of leadership from the highest executive levels, according to credit union executives and housing finance consultants.
“Any credit union that wants to start or expand a housing finance program needs to hire or retain the right people, defined as hiring people to find and competitively process and close loans,” wrote Robert Dorsa, president of the American Credit Union Mortgage Association. “This would also include proper training for all, including management of the CU.”
“When the CFPB released that almost 5,000 pages of regulations about all parts of the mortgage industry, it pretty much swamped us at first,” Sykes said. The credit union had compliance staff inside as well as a relationship with a vending firm, which helped with some aspects of compliance.
Ashfield said establishing relationships with compliance and mortgage issuing CUSOs were very valid options for credit unions looking to get started in housing finance, but she emphasized that when it came to compliance, a credit union needed to have at least enough of a grasp of the issues to be able to do due diligence with any compliance CUSO or vendor it might choose. The credit union should at least be able to know which questions to make sure the CUSO or vendor answers.