Mortgage Industry Backsliding: Risks and Responsibilities

The mortgage industry stands at a crossroads where diminishing regulatory oversight meets economic pressure, creating perfect conditions for a dangerous backslide in lending standards. Dan Sugg, Chief Mortgage Lending Officer with Michigan First Credit Union and a 31-year veteran of the industry, sounds a thoughtful alarm about the risks of regulatory cutbacks. Join him and Peter Benjamin, President of ACUMA on this thought provoking discussion surrounding the changes impacting the credit union mortgage industry, and what the future could look like if you don’t stay vigilant.

Particularly concerning is the vulnerability of first-time homebuyers being approved at maximum debt-to-income ratios. Sugg shares a striking example: “We had members pre-approved in the morning that were denied in the afternoon based on their rate moving.” This illustrates how precariously some borrowers are being qualified, with little buffer against economic changes.

As we navigate these changing times, staying engaged with industry associations, maintaining ethical standards regardless of the regulatory environment, and prioritizing sustainable homeownership over short-term profits will ensure we uphold what Sugg calls “the gold standard of home finance” worldwide. Tune in now to the conversation about protecting the foundation of American homeownership while ensuring fair access for qualified borrowers.