Removing Barriers Blog

CFPB Finalizes the General QM Delay
Posted April 28, 2021 by CUNA Advocacy

The CFPB has finalized its proposal to delay the mandatory compliance date of the General Qualified Mortgage(QM) final rule – moving the deadline from July 1, 2021 until October 1, 2022. The delay becomes operative on June 30, 2021. In the final rule, the Bureau recognized that the practical significance of the delay is ultimately questionable due to the Preferred Stock Purchase Agreement (PSPA) issued by Treasury in January and the subsequent policies issued by Fannie Mae and Freddie Mac earlier this month. The PSPA and policies require sellers of loans to Fannie and Freddie to implement the General QM final rule by July 1, 2021 and currently makes no accommodations for delay. On April 22, CUNA wrote to Treasury highlighting this conflict and asking that Treasury resolve it by amending the PSPA to accommodate the delay. CUNA will continue to bring these concerns to Treasury so that credit unions and their members can enjoy the flexibilities offered by the Bureau’s finalized delay.