Senator asks Regulators for Consistency between QM and QRM

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Posted To: MND NewsWire

A senator has asked federal banking regulators to simplify and align underwriting standards for so-called Qualified Residential Mortgages (QRM) with those for Qualified Mortgages (QM) which were released last week. In a letter to the heads of six federal agencies, Senator Bob Corker (R-TN), a member of the Senate Banking and Finance Committee, said that failure to synchronize the two standards could permanently regulate the private sector out of the housing finance business. Under the Dodd-Frank Wall Street Reform and Consumer Protection Act lenders are required to retain a 5 percent interest in loans they originate for sale; i.e. to keep " skin in the game ." Loans that are sold to Fannie Mae or Freddie Mac (the GSEs) and the Federal Housing Administration (FHA) are automatically exempted...(read more)

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Source: http://www.mortgagenewsdaily.com/01222013_qm_qrm.asp

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