Speakers at Information Management Network's ABS East who tackled the housing market harped on two topics in particular: the qualified residential mortgage (QRM) rule — which basically determines which private-label mortgages are subject to risk retention — and what they see as the unfair advantage that Fannie Mae and Freddie Mac  still enjoy over the private-label RMBS market.

“What we need is a level playing field in terms of regulation and economics between private label and the GSEs,” said Stephen Kudenholdt, the chair of the capital markets practice at SNR Denton. One suggestion he had for winding down the role of the GSEs was to raise the fees charged by these entities to guarantee new loans to “fair market value.”

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