Increased costs due to TRID and other mortgage-process regulations have made an impact industry wide, but not-for-profit financial institutions may be among the hardest hit. Credit unions provide affordable financial services to 105 million members nationwide, making their fiscal health important to a substantial chunk of working Americans. But they are feeling the crunch of regulatory costs.
Since 2010, Credit Unions Have:
- Seen their regulatory costs increase by 39%.
- Spent $1.7 billion managing regulations.
- Lost $1.1 billion in revenue.
According to a recent survey of credit union CEOs by the Credit Union National Association, these losses are unavoidably passed on to credit union members. When asked what they would do if the above lost costs were returned, the CEOs’ top two answers were:
- Provide members lower rates on loans
- Provide members higher interest rates on deposits
So in effect, credit union members’ hard-earned money—which could have been invested in lower interest rates on loans and better rates of return on deposits—must be used to cover regulatory costs.
Reasons for these increased regulatory costs are, predictably:
- Approval times for mortgages and other loans take longer.
- One in four employees now deals with regulations.
- Wait times, paperwork and complexity have increased.
But there is a better way. A way for credit unions and other financial institutions to comply with regulations and get loans through your pipeline at an acceptable pace, without extra effort.