In planning for review of the qualified mortgage (QM) and qualified residential mortgage (QRM) regulations, the agencies responsible for the regulations have not included elements important for conducting retrospective reviews necessary to better understand the effects of these regulations and identify unintended consequences, according to a study by the U.S. Government Accountability Office (GAO). Existing data lack important information for performing these reviews, such as loan performance and borrower debt to income. The CFPB proposed expanding Home Mortgage Disclosure Act (HMDA) data reporting requirements to extract the extra data, but enhanced data would not be available before 2017.
The GAO recommends that the CFPB, HUD and the six agencies responsible for the QRM regulations should complete plans to review these regulations including identifying specific metrics, baselines and analytical methods.
Read the GAO report.