WASHINGTON—Regulatory burdens are impeding consumer access to credit, according to CUNA Vice President of Research and Policy Analysis Mike Schenk.
“One example is mortgage lending, which is subject to new regulations meant to prevent the kinds of abuses that became prevalent in the subprime crisis,” said Schenk in a CUNA report. “A lot of loans that could be made aren't being made” because of burdensome mortgage lending rules.”
Schenk noted that the Economic Growth, Regulatory Relief and Consumer Protection Act, passed by the Senate in March, would establish safe harbors for certain qualified mortgages, provide home mortgage disclosure act reporting relief for smaller institutions, among other changes to mortgage lending and servicing rules.
Schenk also said that credit unions’ not-for-profit, member-owned structure means that regulatory relief would benefit member-owners, as money isn’t being spent on compliance, but on additional products and services.
“At a very basic level, any regulatory relief is going to be helpful because it gives money back to average people,” he said.