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FROM: NAR Government Affairs
RE: QRM Update
DATE: 6 June 2011

As promised, NAR Government Affairs has been closely monitoring the implementation of Section 941 or the so-called “QRM Rule” that is part of the risk-retention provisions of the Dodd-Frank legislation passed last year. The “Qualified Residential Mortgage” has the potential to stop the fledgling housing recovery in its tracks if implemented in its current form. NAR has joined with a diverse network of groups who share our position that, as written, the QRM regulation would push millions of American families out of the home market. The regulation would require onerous down-payment requirements of up to twenty percent of the purchase price. NAR has asked for and received an extension of the comment period until August 1, 2011.

QRM Coalition
Since early 2011, NAR has worked to forge a broad based coalition designed to draw attention to the potential for an enormous disruption to the ability of credit worthy American families to find stable, consumer-friendly mortgages at affordable interest rates.

The coalition has presented a very straight forward message to federal regulators:

Regulators should go back to the drawing board on the proposed QRM rule
As written, QRM violates Congressional intent, makes homeownership more expensive for millions of responsible consumers and jeopardizes the fragile housing recovery
Down-payment requirement puts homeownership out of reach for first-time buyers, including many responsible low and moderate income borrowers.


NAR and Coalition Actions:

NAR in conjunction with its coalition partners gathered the support of 39 United States Senators who wrote to regulators expressing the Senatorial intent on QRM and opposing the imposition of a sizable down payment. 163 House Members signed a similar letter emphasizing the flaws in the QRM and opposing the imposition of a sizable down payment. The additional attention to the QRM issue has resulted in the extension of the comment period. This extension will give the Coalition time to complete a thorough review of the rule and prepare comprehensive comment letters. As the coalition reviews the rule, NAR may ask our state and local association partners for support of our position. We will continue to monitor developments and report them to you as necessary.