QRM to align with QM under rule reproposal, but narrow QRM still under consideration

Regulators would harmonize two important Dodd-Frank mortgage definitions under a rule reproposal advanced by the Federal Deposit Insurance Corp. The reproposed risk retention rule would base the qualified residential mortgage definition on the Consumer Financial Protection Bureau’s qualified mortgage framework. However, the reproposal also seeks comment on whether regulators should narrow the QRM definition by imposing loan-to-value ratio and other standards that do not appear in the QM rule. Read on for the details.