Credit unions and the software companies that support theirmortgage loan programs have been laboring long and hard to complywith what will be seven new Consumer Financial Protection Bureaurules governing mortgage lending.

Passed down from the Dodd-Frank Act, the rules are designed toprotect consumers but will those consumers know or care? Moreimportantly, how much will it cost both members and their creditunions to comply?

Credit unions are ready to launch the new program, including$1.4 billion asset TruMark Credit Union in Trevose, Pa. In additionto helping the credit union better manage its loan program, the newlaws have been cast in the right spirit, according to TimRawlinson, TruMark's vice president or mortgage lending.

“The regulatory spirit is to provide full disclosure, but we goa step beyond that in the spirit of doing the right thing acrossthe board,” said Rawlinson.“A lot of the bad players have exitedthe market, and the new regs allow good lenders to make sound loansso we don't experience those types of things again.”

For some credit unions, addressing the new regulationss will betime consuming, costly and, in some cases, difficult to manage.Some rules will be more difficult to comply with than others,according to Vickie Black, compliance officer for $675 millionTruity Credit Union in Bartlesville, Okla.

“The qualified mortgage rule and ability to repay are the moreimportant ones we will have to manage,” said Black. “There's anappraisal rule out there, but we've provided a copies of appraisalsto our members for 20 years.”

Still, the new rules, designed to protect consumers, may haveunintended negative consequences. Although constituting just asmall portion of its portfolio, TruMark has ceased offering 40-yearmortgages because the new rules don't accommodate them, saidVincent Market, the credit union's executive vice president andchief financial officer. Increased compliance requirements also mayraise other issues, according to Jon Bundy, regulatory compliancemanager for CUNA Mutual.

“The rules do increase the complexity level of having a mortgageprogram, which raises the bar to entry for those credit unionsthinking of adding a mortgage program,” said Bundy. “But I don'tknow if that's truly preventing credit unions from getting intomortgage programs or spurring mergers with largerinstitutions.”

Some credit union executives agree that complying with the newregulations will make it more difficult and expensive to get amortgage loan. More compliance means more checkpoints for thecredit union and more documentation required from the borrower,both of which could mean added expense for both the institutionsand its members.

“At some level, it will be more expensive to get a loan,” saidMark Wilburn, Truity's chief lending officer. ”But we can'tquantify today what additional costs may get passed on to theborrower.”

TruMark's Market also sees a somewhat ambiguous outcome from thenew regulations. The question of whether the regulations designedto protect consumers' interests will truly be perceived as abenefit has not been answered, he said.

“How are members going to react on Jan. 10?” Market asked. “Willthey care? Is the process more challenging for them? Will the newregs drive people away? I really don't know.”