During a Feb.12 congressional hearing, credit union executives detailed the harmful effects of the CFPB's Qualified Mortgage rule on their institutions.

When the CFPB's mortgage rules were unveiled, Wally Murray, president/CEO of the $515 million Greater Nevada Credit Union in Carson City, Nev., said his institution started having internal conversations about the kind of borrowers that would not qualify.

“We've taken a conservative approach. We said we're not going to do any non-qualified mortgage loans right now. We're going to take a wait and see and see how it all plays out. That's not the way to serve our communities effectively,” Murray said before the Senate Banking Committee at a regulatory relief for credit unions and community banks hearing. “I beseech you to look at that and understand the true impacts of that on the communities it's affecting,”

Ed Templeton, president/CEO of the $691 million SRP Federal Credit Union North Augusta, S.C., said his institution initially decided to back away from non-QMs but changed course.

“We determined that we couldn't back away from that market because if we did, it was going to be a substantial portion of our business,” he said.

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