The Mortgage Bankers Association (MBA) reacted quickly to the publication yesterday of proposed rules governing Qualified Residential Mortgages (QRMs), the mortgages which will be exempt from the risk retention requirement of the Dodd-Frank Act.
In a statement released by MBA yesterday afternoon, President and CEO John A. Courson said that it would take time for the Association to fully evaluate the complexity of the hundreds of pages of regulations, but its first reaction was a "profound concern" about its impact on residential mortgage financing and "the nation's economy today and for generations to come."
Courson cited the "rigid and highly prescriptive nature of the proposed rule," because such a narrow definition of the risk retention exemption would limit mortgage opportunities for qualified borrowers more than it would reduce the number of problems loans. If enacted as proposed, Courson said, it would also reduce any role for independent mortgage banks and community lenders which, despite long histories as safe lenders may lack the balance sheets or capital to hold loans or reserve against risk.
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Source: http://www.mortgagenewsdaily.com/03302011_risk_retention_mba.asp
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