Analysts Weigh in on Potential Impact of Proposed QRM Rule
The newly proposed Qualified Residential Mortgage rules were released August 28th to cheers from mortgage industry members and consumer advocates alike.
Although the concept of the QRM is complex, several industry analysts provided insight as to how the revisions might provide benefits or impediments to progress in the mortgage market.
- Keefe, Bruyette & Woods noted in a report that the revised QRM proposal should provide mortgage insurers, particularly, with a sense of relief.
- According to Fitch Ratings, syncing the QM and QRM proposals will lead to reduced costs and make the transition to the new rules easier for originators.
- Economist Paul Diggle, of Capital Economics, highlighted two areas of concern – the stricter 30 percent down payment inclusion and the inability of the QRM and QM to help reduce the presence of GSEs in the mortgage market.