ABA supports the mortgage risk retention rule that federal regulators re-proposed in August. The re-proposal aligned the qualified residential mortgage, or QRM, standard with the CFPB’s Qualified Mortgage rule. The revised rule reduces the risk of default and delinquency, provides clarity and consistency for mortgage professionals and ensures creditworthy homebuyers have access to safe mortgage financing, ABA said.
“A QRM standard that mirrors the CFPB’s QM rule is a big step forward in strengthening the housing market,” said ABA President and CEO Frank Keating.
ABA’s comment letter was accompanied by a white paper from the 50-member-plus Coalition for Sensible Housing Policy—of which ABA is a member—making the case that QRM should correspond to QM.
Read ABA’s letter.
Read the coalition white paper on QRM.