CUNA writes to Treasury on CFPB QM/GSE policy conflict

April 22, 2021

The Consumer Financial Protection Bureau’s (CFPB) proposed delay of the mandatory compliance date of the General Qualified Mortgage (QM) final rule until October 1, 2022 conflicts with policy changes issued by Fannie Mae and Freddie Mac, which would require implementation of the rule by July 1, 2021. CUNA expressed concerns over the effects this will have on credit unions Thursday in a letter to Treasury Secretary Janet Yellen.

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.

“Implementing these standards despite the CFPB’s delay would be unnecessary, wasteful, and ultimately harmful for consumers as the implementation cost may also increase the cost of credit,” the letter reads. “CUNA urges 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.”

CUNA adds that these policy changes and the PSPA amendments eliminate any benefits to credit unions resulting from the delay and regulatory flexibility offered by the CFPB’s proposal.

“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,” the letter reads. “This represents a tremendous waste in resources and time for American’s credit unions and offers no benefit to the Enterprises.”