QRM definition still up in the air

What will the standards be for a qualified residential mortgage — a QRM? Those are the loans that Fannie and Freddie will be willing to back, so they’ll essentially be the best (aka least expensive) around.

The original suggestion required that a QRM include a 20 percent down payment, or else the lender would have to hold onto five percent. Naturally, we didn’t go for that at all, nor did a long list of other organizations.

So “rulemakers” (that is, federal regulators and their kin) opened the definition for public comment: What should define a QRM? And comments they got, by the bucketful. And although the comment period ended August 1, those rulemakers are still going through them — i.e., they haven’t made a decision.

It’s an issue we’re watching closely, believe you me. As are, apparently, lawmakers on Capitol Hill.

Click here to read Housing Wire’s story all about it.

Or click here to see all we’ve written about QRMs.

About Andrew Kantor

Andrew is VAR's editor and information manager, and -- lessee now -- a former reporter for the Roanoke Times, former technology columnist for USA Today, and a former magazine editor for a bunch of places. He hails from New York with stops in Connecticut, New Jersey, Cincinnati, Columbus, and Roanoke.
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