After coming to grips with the dimensions of two critically important and related mortgage rules, federal regulators have decided that one should be finalized before the other: the qualified mortgage (QM) test.As result, the Consumer Financial Protection Bureau (CFPB) will go first and finalize the QM rule, ultimately determining which loans are safe enough for consumers while shielding lenders from litigation provided they adhere to predetermined underwriting standards.

Next, a group of six regulators will tackle the qualified residential mortgage (QRM) rule. The QRM will determine which securitized mortgages should be exempt from a 5% risk retention requirement.

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