The American Bankers Association (ABA) is urging banking regulators to tailor the qualified residential mortgage (QRM) standard so that the majority of loans originated by depository institutions are exempt from risk retention.

"Our members believe strongly that imposing too broad a risk retention requirement — or imposing risk retention to achieve policy goals beyond improved underwriting — is likely to cause lenders to leave the marketplace and result in the constriction of credit to otherwise eligible borrowers," ABA says in a letter to the regulators.

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