Qualified Residential Mortgage (QRM) Archive

Why QRM is Such a Big Win for Real Estate

Much of what NAR does in Washington is defensive: it works with Congress to prevent curbs to the mortgage interest deduction or to prevent elimination of federal backing of conforming mortgage loans. The qualified residential mortgage (QRM) rule that...
November 3, 2014

QRM: Regulators Agree with NAR But Deal Not Done

Federal banking regulators have re-proposed the qualified residential mortgage (QRM) rule, which requires lenders to hold back 5 percent of the loan amount on securitized home mortgage loans unless they originate the loans based on “safe” guidelines, which are...
September 11, 2013

Investors Fed Bad Info During Boom

Researchers from Columbia University and the University of Chicago have done mortgage investors a big favor by teasing out two examples of how investors were fed bad information on the safety of so-called private-label subprime mortgages during the housing...
February 15, 2013

QM, QRM to Lock in Tight Loan Standards

Home mortgage originations will shrink by up to 20 percent and the economy as a whole clipped by 1.1 percent over the next three years if federal regulators proceed with their proposed qualified mortgage (QM) and qualified residential mortgage...

Action on Loan Standards Needed More than on Rates

The Federal Reserve hopes to drive down already low interest rates and reboot the sluggish economic recovery by buying up some $40 billion in mortgage-backed securities a month. But there’s a reason to wonder if a different kind of...
September 17, 2012

QM, QRM, Basel III: Mortgages for the Wealthy

Capital and mortgage financing rules being drafted in Washington and elsewhere raise the possibility that the United States will become increasingly split between affluent home owners and less affluent renters, because lenders will be constrained to stay within tight...

Lenders: Staffing, Appraisals Hold Back Loans

Insufficient staff to process loan applications and to get timely and accurate appraisals are two of the reasons lenders say are impeding their ability to originate and purchase more home loans, results from the Federal Reserve’s most recent quarterly...

Will Regulators Make the QRM Mistake All Over Again?

It’s the QM rule’s turn in the spotlight, and so far a federal proposal raises concerns If you’re applying for a loan, what determines whether or not you can repay that loan? That’s what a federal regulator is trying...

Independent Analysis: 60% of ‘Good’ Loans Wouldn’t Qualify Under QRM

The Center for Responsible Lending (CRL) and a research institute of the University of North Carolina just released the results of an exacting study on how borrowers would fare under different QRM scenarios and they don’t look good. Let’s...
January 31, 2012

QM: QRM’s Quieter Cousin

By Robert Freedman, Senior Editor, REALTOR® Magazine For the past several months it’s been all QRM all the time, but now there’s QM. As many real estate professionals are familiar with by now, thanks in part to an NAR...
August 17, 2011