She also said some NAFCU members reported they have spent more than 1,000 staff hours on training and complying with the requirements of the CFPB's QM rule. 

"More needs to be done to require regulators to justify that the benefits of a proposal outweigh its costs," she stated.

"After the CFPB issued the QM rule, we originated about half the amount of borderline mortgage loans that we would have made before," Patrick Miller, president/CEO of the $405 million CBC Federal Credit Union in Oxnard, Calif., said during the hearing.

Miller, who testified on behalf of CUNA, explained that his credit union denied 50 families for home loans even though the institution felt they were qualified borrowers. Miller said the decision was made simply because his credit union feared the regulator scrutiny of non-Qualified Mortgage (QM) loans. 

"I should be able to evaluate the ability to repay my credit union members in Oxnard, California; the decision should not be left to someone in Washington," he said.

Miller also said the CFPB mortgage servicing rules have adversely affected his credit union. 

"These rules were created because of companies like high-risk mortgage servicers and Wall Street banks, not credit unions," he said. "Our credit union has never had any loan servicing complaints, yet the pages and pages of new rules make it more onerous and expensive to service home loans." 

Miller added that outsourcing costs are $100,000 per year.  

"This is an unnecessary expense, and since credit unions are member-owned, this extra cost affects our members directly," he said.

Miller also asked the committee members for legislative action on data security.  

"Credit unions and their members are greatly impacted by the weak merchant data security practices that have allowed several large scale breaches," he said. "In my small credit union, we currently dedicate $575,000 a year to cyber security, because protection of member data is of the highest priority."