WASHINGTON–CUNA has sent a letter to Treasury Secretary Janet Yellen related to the CFPB’s recent proposed delay of the mandatory compliance date for the General QM Final Rule until Oct. 1, 2022.
According to CUNA, the change conflicts with policy changes issued by Fannie Mae and Freddie Mac this month that would require implementation of the rule by July 1, 2021.
CUNA said the January amendments to the Preferred Stock Purchase Agreement (PSPA) between Treasury and the Federal Housing Finance Agency (FHFA) as conservator of Fannie Mae/Freddie Mac require credit unions selling mortgages to Fannie and Freddie to implement the new General QM standards.
CUNA said it is urging Treasury to amend the PSPA Amendments to align the deadline for implementation by Sellers with any mandatory compliance deadline set by the Bureau to avoid these consequences.
‘Necessary Corrections’
“The Enterprises’ policy changes and the PSPA Amendments eliminate any benefits to credit unions resulting from the delay and regulatory flexibility offered by the Bureau’s proposal,” CUNA wrote. “It forces credit unions to implement the General QM Final Rule before it is required by the CFPB and knowing that the Bureau is likely to propose further changes. This represents a tremendous waste in resources and time for American’s credit unions and offers no benefit to the Enterprises.”
CUNA said it is urging Treasury to further amend the PSPA Amendments to clarify that the provisions of Subsection 5.15 must be implemented on or prior to the mandatory compliance deadline for the QM Final Rule.
“This will allow for a floating deadline in parallel to both the mandatory compliance date for the new General QM definition and the sunset of the GSE Patch, creating efficiency and simplicity for credit unions and ensuring the smooth operation of the housing finance market,” CUNA said.