• QRM-Related Documents

    © 2012, Brandon Cornett, all rights reserved

    This page serves as a repository for official documents relating to the qualified residential mortgage, or QRM. Please note that some of the documents may be superseded by more recent versions, and therefore less accurate than the current versions. We make every effort to keep these page updated as new documentation becomes available. Documents are listed in reverse-chronological order (most recent first), based on their original publication date.

    PDFABA Backgrounder: Mortgage Reform into 2013
    The American Bankers Association (ABA) released this document in September 2012, along with an accompanying press release. As its name implies, this document gives a high-level overview of the various mortgage-reform measures, including the qualified residential mortgage. It also includes links to many additional resources. Well worth a read.
    Document created: September 2012

    PDFNotice of Reopening of Comment Period (Ability to Pay Rules for QM Loans)
    QM and QRM rules overlap, but they are technically two different things. The concept of the qualified mortgage, or QM, is built around the borrower's ability to repay the loan. The question is, how best do we measure the ability to repay? The Consumer Financial Protection Bureau (CFPB) is seeking public comment on this very thing, until July 9, 2012. This document contains all of the details.
    Document created: May 2012

    PDFBalancing Risk and Access: Underwriting Standards and the QRM
    This report was jointly prepared by the Center for Responsible Lending and the Center for Community Capital at UNC. It offers an in-depth look at the QRM (in its current, loosely defined state) and how it might impact the housing market. At a minimum, you'll benefit from reading the introduction and background portions of this document. They provide an excellent summary of the history and purposes of this forthcoming legislation. It's well worth a read.
    Document created: January 2012

    PDFFederal Register: Proposed QM / QRM Rules
    In this document, the proposed mortgage rules are officially added to the Federal Register. The QRM is first mentioned (outside of footnotes) on page 56 of this document, where it states that lenders will have "a total exemption from the risk retention requirements for securitizers of certain securitization transactions, such as an ABS issuance collateralized exclusively by 'qualified residential mortgage'..."
    Document created: April 29, 2011

    PDFMortgage Market Note 11-02: Qualified Residential Mortgages
    This document was released by the Federal Housing Finance Agency (FHFA) in April 2011. It explains how multiple agencies are working together to create a standard definition and criteria for the qualified residential mortgage. It also includes some key data on the default and delinquency trends for mortgage loans that meet the parameters being proposed for QRM. This is a key document that offers some insight into the thought process used when creating the QRM requirements.
    Document created: April 11, 2011

    PDFNotice of Proposed Rulemaking - Credit Risk Retention
    This document is mostly a formality, though it does give some historical insight into the creation of the risk-retention rules (from which the QRM requirement was born). It is a federal document that announces the forthcoming rules regarding risk retention on mortgage loans.
    Document created: March 2011

    PDFSummary of Mortgage Related Provisions of the Dodd-Frank Act
    This document was created and distributed by the Mortgage Bankers Association (MBA) in August 2010. Though it's a bit dated, it gives a good summary of the Dodd-Frank Act as it pertains to the creation of the qualified mortgage, or QM.
    Document created: August 6, 2010

QRM at a Glance