The Treasury and the Federal Housing Finance Agency (FHFA) on Tuesday announced the suspension of several parts of the 2021 Preferred Share Purchase Agreements (PSPA). CUNA brought the concerns of credit unions to the attention from FHFA Acting Director Sandra Thompson to several of the provisions suspended in a letter and in meetings with Thompson and his staff.
The FHFA will consult with the Treasury on the scope of the review and any recommended revisions to the requirements of the FESP.
The suspended provisions that worry CUNA include the 7% cap on investment loans and loans to second homes.
“This cap puts credit unions on the sidelines, resulting in more consumers getting loans from predatory lenders or at higher costs than necessary … This would ensure that these consumers can get the loans. loans they need securely and at a great rate, ”reads CUNA’s July 1 letter to Thompson.
CUNA added that the cap could further increase the cost of financing affordable rental housing and unnecessarily increase the cost of credit and housing for consumers.