Regulators set to propose a revamped QRM rule
The qualified residential mortgage rule, which requires lenders to keep a stake in some of the mortgages they securitize, is getting a facelift.
Regulators are reportedly proposing an easier version of the rule Wednesday to ensure the regulation doesn't undermine the ability to lend safely to borrowers. Per Bloomberg:
The plan would require banks to retain a slice of mortgages when borrowers are spending more than 43% of their monthly income to repay their debt. The earlier proposal would have required banks to keep a stake in loans when borrowers were spending more than 36% of their income on all loan payments and in loans with down payments of less than 20%.