Pennsylvania VA Mortgage Planner

Consumer advocates and banks have been particularly focused on QM and QRM because the rules are expected to have a dramatic impact on lending. By making loans that meet QM and QRM standards, lenders will receive legal protection and won’t have to keep a stake in securitized loans.

There’s been concern that if QM and QRM guidelines are too strict, many creditworthy borrowers would be unable to obtain a mortgage. Indeed, the prior QRM proposal’s 20% down-payment provision was dropped in Wednesday’s plan following criticism from industry groups and consumer advocates that too many good borrowers wouldn’t be able to get a loan.

According to the Center for Responsible Lending, a Durham, N.C.-based consumer advocacy group, it would take typical family more than two decades to save enough for a 10% down payment.

“Mandating down payment standards would make the housing market and overall economy worse instead of better,” according to a recent CRL note. “If mandated down payment standards went into effect — instead of letting the market determine appropriate down payment standards — then fewer families could become first-time home buyers.”