Jeff Schwalen, president/CEO at Hiway FCU, said profitability issues will force the Midwestern credit union to make non-QM mortgages.

BOSTON — The Consumer Financial Protection Bureau’s qualified mortgage rule that limits closing costs to 3% of the loan balance will have such a big impact on Midwestern credit unions, one Minnesota-based executive said he’d lose money if he complied.

Jeff Schwalen, president/CEO of the $918 million Hiway Federal Credit Union, presented the problem during an afternoon breakout session on new mortgage rules July 10 at NAFCU’s 46th Annual Conference here.

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