Mortgage Lending in Light of New Regulations

In the years following the mortgage crisis, many lenders – particularly credit unions – have had difficulty maintaining compliance, especially as regulations continue to change. For example, the TILA-RESPA Integrated Disclosure rules are adding severe pressures to community institutions.

The industry’s hurdles will not only be in maintaining compliance, but also in keeping pace with member demands, as consumers are increasingly turning to credit unions for their home financing needs. In fact, Callahan & Associates recently reported that the credit union market share of first mortgages has quadrupled since 2006.

Larger institutions are fairly well-equipped to handle added compliance guidelines, but smaller community institutions will likely face complex issues in dealing with efficient compliance management within their organizations in 2015 and beyond. Hiring more staff members, however, is not always the answer.