QRM Articles and Information

Extension of Comment Period
FDIC
Due to the complexity of the rulemaking and to allow parties more time to

Potential Impacts of Provisions in the Dodd-Frank Act on Homebuyers and the Mortgage Market
Government Accountability Office
Risk retention could complement other securitization and mortgage reforms, such as those that promote greater transparency and enforcement of loan underwriting standards.

Qualified Residential Mortgage Regulations Threaten the Housing Market
The Heritage Foundation
This appears to be yet another example of overloaded regulators producing draft regulations without considering major issues and weighing their consequences.

Regulators vote for 20% down on QRM
HousingWire.com
"The QRM is the exception, not the rule, and as such, I believe should be narrowly drawn," Bair said. "Properly aligned economic incentives are the best check against lax underwriting."

What's wrong with the qualified residential mortgage?
HousingWire.com
It's the big lenders who don't and won't worry with QRMs and risk retention. With the lion's share of the market, growing considerably in recent years, they've already proven they can operate outside the boundaries QRM and risk retention seeks to establish. It's the community banks that will be shut further out of origination, without access to the secondary market.

Regulators to Set Rules on Mortgage Securities
New York Times
Major banks, hoping to revive the mortgage securitization market that crumbled when many securitizations proved to be anything but safe, had asked regulators to define almost any mortgage — except for the most extreme types no longer being written anyway — as a “qualified residential mortgage.”

Five Questions on the Qualified Residential Mortgage
Wall Street Journal
Risk retention is likely to raise costs for banks, and consequently, for borrowers—because banks must hold more capital in reserve.

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