WASHINGTON—Home lenders won a partial victory in new mortgage rules from the regulatory agencies.
The agencies agreed with lenders, including the CU trade associations, to modify their final rule so that the qualified residential mortgage (QRM) now requires investment banks to hold at least 5% of a loan's risk on their own books when securitizing loans unless the loans meet the definition of a QRM.
In making the change, the definition of QRM now is more in line with how the Consumer Financial Protection Bureau defines qualified mortgages (QM). Credit unions and other lenders had argued the previous rule would have significantly stymied mortgage lending.