Agricultural Economics Department


Date of this Version


Document Type



Cornhusker Economics, July 26, 2017,


Copyright 2017 University of Nebraska.


Credit availability affects the equilibrium quantity of housing. Lenders incorporated as cooperatives, such as agricultural credit associations (ACA) and credit unions, are aware of their role in offering rural residential real estate loans, facilitating entry into this housing market. In some instances there are few alternatives to cooperative financial institutions for access to mortgages in rural areas. At year -end 2016, credit unions were the only type of financial institution in approximately 275 nonmetropolitan counties nationwide. In some instances other types of financial organizations simply do not offer home finance products in nonmetro locations. Compounding these features of non-metropolitan real estate finance, the Dodd- Frank Act was passed in 2010. This bill, intended to facilitate transparency in financial transactions, imposes additional duties and obligations on loan originators that change the costs of providing mortgages. The costs of complying with these duties result in additional hiring and training expenses for lenders.