Posts Tagged ‘ Qualified Residential Mortgage ’

“New Consumer Protection Agency Faces Opposition,” NPR, July 21, 2011


This article (click here to download PDF) discusses the ongoing debate about the CFPB. The general objectives are reasonable but so is adequate congressional oversight and public transparency. It would be better to remove the CFPB from the Federal Reserve Board and place it within HUD or the FTC. The future of the MLDS/GFE rests upon the outcome of the pending regulations by the CFPB, as will the ultimate interpretations that likely affect broker compensation, QRMs, the 5% retention rule, etc. The truth of the matter is regulators were in place prior to the CFPB to prevent the crises in the mortgage industry and in the housing...

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QRM on the Hot Seat


News Commentary:”‘Qualified Residential Mortgage’ on the Hot Seat,” Mortgage News Daily, July 29, 2011. Per this article (click here to download PDF) the subject of QRMs and the 5% could prove to be a major issue for “hard money” mortgage brokers and hedge funds that are less than $1 billion in assets under management. It is not clear where the cutoff will be in volume threshold requiring the application of the 5% retention rule. Unless the threshold is at least $100 million or more, this could prove to be the demise of many small to moderate sized “hard money” mortgage brokers. The surviving industry will be left...

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