The debate over what counts as a
"Qualified Residential Mortgage (QRM)" may be coming to an end in the near future. The Federal Deposit Insurance Corporation (FDIC) has scheduled a meeting of its Board of Directors for next
Tuesday to vote on the issue. A draft of the proposed rule will be made available to the public at that
QRMs are home loans that will
be exempt from the requirement that mortgage lenders retain a 5 percent share of each loan they originate that is packaged for securitization -
keeping so-called "skin in the game."
identified loans guaranteed or originated by FHA, VA, and USDA as qualified for
exemption but left other products, including loans written by Fannie and Freddie, up to federal regulators to determine.
Glen Corso, managing
director of the Community Mortgage Banking Project (CMBP), said the FDIC meeting announcement implies a substantial amount work on the QRM is complete and all
of the regulators have signed off on the proposal. Corso said it appears that the FDIC will move first on
the rule, and "we expect that the other agencies -- OCC, the Fed, HUD, SEC
and the FHFA -- will be approving the rule in the days following the FDIC's
action." Once the agencies sign off
the rule will be published in the Federal
Register and a period of public comment (typically 60 days) will begin.
MND has published much content on the topic...
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