By aligning the Qualified Residential Mortgage (QRM) standard with the CFPB’s Qualified Mortgage standard, financial regulators helped preserve access to mortgage credit, ABA President and CEO Frank Keating said in a USA Today “Opposing View” editorial. He was responding to an editorial arguing for a tighter QRM rule, which he said would have “dissuaded many lenders from originating mortgages outside of those very tight boundaries, thus limiting credit -- with disproportionate harm to low-income and first-time homebuyers.”
Instead, Keating noted, regulators decided to use the QM standard for the risk retention rule. This will protect taxpayers -- as QMs are considered very safe and new rules require lenders of non-QMs to retain some of the default risk -- while maintaining broader access to credit.
Read the editorial.