FDIC RELEASES QUALIFIED RESIDENTIAL MORTGAGE "QRM" PROPOSAL TODAY
The Federal Deposit Insurance Corporation, US Securities & Exchange Commission, Federal Reserve System, Federal Housing Finance Agency, and Department of Housing and Urban Development unveiled their new risk retention proposal today. The QRM proposal would mandate that banks maintain at least five (5%) percent of the risk of mortgage securities they package.
The proposed QRM rule is already controversial because of concerns the rule will further eliminate competition in the mortgage industry, drive up consumer costs, and slow housing sales even further. The controversy isn't expected to die either because of language in the proposal that prohibits real estate agents and brokers from donating or "Gifting" part of their commission to borrowers at the transaction. Under the proposal the real estate agents and/or brokers would need to adjust the sales price downward if they want to provide a "Gift" to a borrower for a transaction. The Gift language prohibition could trigger disclosure issues in connection with a loan. (See page 198 of 233) of QRM proposal.
Comments
QRM will lead to the destruction of the housing market. Why is NAR still fighting silly fights when they should be focused on this issue right now. Who gives a rats behind about the mortgage interest deduction when this is an end around NAR by the big banks. Wake up NAR please.
Posted by: Pony Express Community Bank | March 29, 2011 8:40 PM