Tag Archives: National Credit Union Administration

One CEO is asking consumers to verify appraiser qualifications with their lenders, to ensure a smooth appraisal process.

Mortgage lending among credit unions experienced significant gains for the first quarter of the year, but their supervisory agency cautioned that these institutions should monitor risks.

According to a quarterly report from the National Credit Union Administration (NCUA), institutions last quarter reported $673.9 billion in outstanding loan balances, an increase of 9.8 percent compared to the second quarter of 2013—the largest annual growth since the first quarter of 2006, the group reported.

On Wednesday, four federal financial regulatory agencies and the Conference of State Bank Supervisors (CSBS) issued risk management guidelines for financial institutions that need to be aware of the challenges borrowers may face in paying off their home equity lines of credit after coming out of a recession.

Federal agencies assured institutions that they will not base their judgments of a loan's safety and soundness on its status as a QM or non-QM loan.

Five federal agencies issued Tuesday a statement assuring creditors that they do not run the risk of being found in violation of fair lending laws should they choose to only originate qualified mortgages (QM) as defined earlier in the year. With creditors having to consider a balance of secondary market opportunities, capital requirements, and credit and liability risk, regulators say they expect there will be a need for most businesses to fine-tune their products in response--something they should be used to.

In a joint release, six federal financial regulators proposed exemptions from Dodd-Frank appraisal requirements for loans of $25,000 or less, certain streamlined refinancings, and certain loans secured by manufactured housing. Those exemptions would join others already laid out earlier this year. According to the release, the proposed exemptions "are intended to save borrowers time and money and to promote the safety and soundness and creditors."

Mortgage Daily tracked a total of 15 mortgage-related business closings in the first quarter of 2013, putting the year on pace to see the fewest number of mortgage banking failures in seven years. While Q1's casualty rate was greater than Q4 2012 (when 13 businesses shut down or collapsed), it's an improvement over Q1 2012, which saw 27 total closings. At the current pace, Mortgage Daily forecasts around 60 mortgage-related closings this year, down from 83 last year and the lowest level since 2006.

Federally insured credit unions brought in record-high earnings last year, the National Credit Union Administration (NCUA) reported. NCUA reported earnings of $8.5 billion across the industry in 2012, the highest annual figure ever posted. Earnings last year were 36.1 percent higher from the $6.3 billion reported in 2011. The rise in earnings came largely from reductions in loan loss reserves, "a positive sign of improving economic conditions," NCUA said in a release.

Starting in January 2014, mortgage lenders will work under new rules governing the handling of appraisals and other home value estimates. The Consumer Financial Protection Bureau (CFPB) announced Friday the adoption of a new rule intended to improve consumer access to appraisal reports. In addition, the CFPB (in partnership with five other federal regulatory agencies) issued a rule establishing specific appraisal requirements for higher-priced mortgage loans and properties flipped within six months of purchase.