Speakers at information Management Network's ABS East who tackled the housing market harped on two topics hampering the comeback of private-label RMBS issuance — in particular the lack of a clear definition of a qualified residential mortgage (QRM).

QRMs are exempted from credit risk-retention requirements. Regulators for now have included only high quality mortgages in the definition, potentially discouraging lending to non-prime credits. Panelists also complained about the unfair advantage that Fannie Mae and Freddie Mac still enjoy over the private-label RMBS market since lenders can take advantage of the cheaper execution offered by the GSEs.

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