The Coalition for Sensible Housing Policy
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Finalized QRM Rulemaking

The Coalition for Sensible Housing Policy

For Immediate Release                                                                                                                                         August 28, 2013

Contact:  Lindsay Gilbride –

Coalition for Sensible Housing Policy Lauds Revised QRM Regulations

Washington, D.C. – Today, the Coalition for Sensible Housing Policy lauded the release of a revised proposal by federal regulators to define the Qualified Residential Mortgage (QRM) rule. The QRM definition, now proposed to align with the recently finalized Qualified Mortgage (QM) rule, is part of the risk retention regulations required by the Dodd Frank Act, which Congress enacted in 2010.

The Coalition released the following statement:

“We are pleased to see that federal regulators have preserved a role for prudently underwritten, low down payment loans as part of the revised Qualified Residential Mortgage (QRM) rule. In synchronizing the definition of QRM with the Qualified Mortgage (QM) rule issued earlier in the year – and avoiding onerous down payment requirements – the revised rule will encourage safe and financially prudent mortgage lending, while also creating more opportunities for private capital to reestablish itself as part of a robust and competitive mortgage market.  Most importantly, it will help ensure creditworthy homebuyers have access to safe mortgage financing with lower risk of default.” 


“The debate over QRM all too often breaks down on the notion of the size of the down payment.  We seriously question the re-proposed rules alternative regarding a 30 percent down payment. The housing crisis was not caused by high LTV lending, but rather by lapses and shortcuts in solid underwriting and by the introduction of complex loan products that were too risky for most consumers.  As Martin Eakes from the Center for Responsible Lending has often made clear responsible low down payment loans are also a key to the recovery of our nation’s housing market and economy.” 

The risk-retention provisions within Dodd Frank require the issuers of mortgage-backed securities to retain a portion of the risk of potential loss on those assets. Recognizing that requiring risk retention would impose increased costs even on creditworthy borrowers, Congress specified that well-underwritten mortgages with consumer-friendly features– “Qualified Residential Mortgages” – should be exempt from the risk retention requirement and directed regulators to promulgate regulations to establish the exemption. The proposed rule now enters a 60-day public comment period, ending October 30, 2013.



The Coalition for Sensible Housing Policy is a diverse coalition of 50 consumer organizations, civil rights groups, lenders, and real estate professionals united in their opposition to high down payment requirements that could freeze credit-worthy Americans out of the housing market. For more information, including a full list of members, visit




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