Eighty-eight percent of respondents to a NAFCU survey say theircredit unions will reduce originating mortgage products that don'tconform to the Consumer Financial Protection Bureau's “qualifiedmortgage” standard, or discontinue the products altogether.

The survey was published Wednesday in the trade's MayEconomic and CU Monitor newsletter and asked participantsa variety of questions regarding how CFPB rules have impacted theiroperations.

Forty-four percent of respondents said they will reduce theiroriginations of non-QM mortgages, while the other half said they would ceasenon-QM originations completely. The CFPB's qualified mortgage rule will take effect Jan. 10. The FederalHousing Finance Agency announced May 6 it will cease purchasing non-QM mortgage loans on the rule's effectivedate.

Additionally, the survey found that 37.5% of respondentsoriginated mortgages in 2012 that would not meet the rule'scriteria. Fifty-one percent said they will have to revise theirperiodic billing statements under the rule, and 18% said the rule's120-day waiting period for loss mitigation actions conflicts with astate regulation.

An overwhelming majority of 93% of respondents said they haveseen regulatory burdens rise under the statute, and 88% citeincreased compliance costs.

In the absence of Dodd-Frank Act regulatory and complianceburdens, 71% said they would be able to offer lower fees to membersand 58% said they could offer more services or enhance existingones.

Of the 76.2% of responding credit unions that service mortgages,most said their set-up costs under the CFPB rule will come in under$10,000; however, 11.5% say they expect initial set-up to cost morethan $50,000, and 7% expect ongoing costs to exceed $50,000.