Final QRM Rule Aligns With Credit Union Recommendations
Federal regulators have approved a final rule that will require investment banks to hold at least 5% of a mortgage loan’s risk on their books when securitizing loans unless the loan meets the definition of a qualified residential mortgage (QRM). In accordance with recommendations from the credit union industry and others, the definition of a QRM has been more closely aligned with the definition of a qualified mortgage (QM). The regulators further agreed to review the QRM standard in four years. [10/22/14]
