With the qualified mortgage rule now available to the public, lawmakers in Washington D.C. are setting their sights on the qualified residential mortgage.

The QRM, which is outside the CFPB’s rulemaking purview, will determine the future landscape of the mortgage securitization market.

Sen. Johnny Isakson, R-Ga., a member of the Senate Finance Committee, released the following statement Thursday:

“I am pleased that the Consumer Financial Protection Bureau has made a decision regarding the Qualified Mortgage (QM) regulation.  Now, the focus should shift to the pending Qualified Residential Mortgage (QRM) rule in order to unlock new and existing home purchases and private mortgage lending and to help revitalize the U.S. housing economy.  Mortgage refinances currently dominate 70 percent of today’s housing market, because new buyers are staying on the sidelines with the uncertainty over mortgage finance.  Finalizing QM was an important step, and now QRM must follow.”

“The QRM rule was intended to strengthen underwriting standards and to eliminate risky loan products with a new high quality standard for mortgage securitization.  I hope federal regulators realize that a 5 percent down payment level — and not a 20 percent down payment requirement as currently proposed — along with private mortgage insurance and a clear framework for high quality underwriting  will best meet the needs of America’s middle class homebuyers.  As someone who sold houses for more than 30 years, I know that underwriting is the key to ensuring that we have good loans in this country and that impractical down payment requirements will keep responsible citizens from realizing the American dream of homeownership.  QRM is essential to help revitalize the U.S. housing economy, and will go a long way to benefit consumers, lenders and investors.”