Industry NewsMortgage

Major changes likely to ‘qualified residential mortgage’ proposal

Congress, interest groups form unlikely alliance to oppose plan

Do you hear us now? No hardwired mortgage down payment requirements for well-qualified homebuyers. Not 20 percent. Not 10 percent. Not 5 percent. That's what an unprecedented alliance of dozens of civil rights, real estate, labor, mortgage and consumer advocacy groups -- joined by substantial percentages of the membership of Congress -- have been shouting at six federal agencies, in a steadily rising pitch, for the past two weeks. Their objective: convince officials to change their minds about the controversial "QRM" (qualified residential mortgage) proposal that would mandate 20 percent down payments and strict debt-to-income rules. The U.S. Federal Reserve today announced an extension of the comment period for the proposal, also known as the "credit risk retention requirements," to Aug. 1, 2011. The original public comment deadlines was June 10, 2011. Though the regulatory agencies are prohibited by law from discussing the proposal while it is still op...