The Mortgage Bankers Association has argued before Congress that the proposed definition of qualified residential mortgages will wind up forcing more borrowers into using government-backed loans.
QRMs will be mortgages for which banks and other mortgage-backed security issuers will not have retain part of their risk on their books. As part of the proposal for a definition of those mortgages, federal regulators have suggested significantly higher down payments for QRM loans.
The National Association of Realtors has opposed the proposal on the grounds that it will limit home-ownership. The Mortgage Bankers Association opposes it on the grounds that it will dissuade private financing from the secondary mortgage market and lead to more Americans insuring their loans with the Federal Housing Administration.
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