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.