Newsroom

October 21, 2014

QRM rule clears FDIC, slated for Fed today

FDIC yesterday became the first regulatory agency to approve the interagency rule defining "qualified residential mortgages" and setting a 5 percent risk retention requirement on securitizers of non-QRM loans.

The rule finalizes a revised proposal issued last year. At NAFCU's urging, it aligns the definition of QRM with the definition of "qualified mortgage" in CFPB's regulations. It also no longer would require that a mortgage to have a 20 percent down payment and 36 percent loan-to-value ratio in order to qualify as a QRM. This new final rule would not apply to credit unions directly, but credit unions – as participants in the mortgage market – will feel the market effects.

The QRM rule is slated for action by the Federal Reserve Board this afternoon. Other agencies in the rulemaking include the Federal Housing Finance Agency, Office of the Comptroller of the Currency, Securities and Exchange Commission and Department of Housing and Urban Development.

NAFCU will study the rule for its potential impact on members and continue to advocate for a reduced regulatory burden for credit unions.