The mortgage insurance industry hopes that banking regulators recognize the value of their product when finalizing their ‘qualified residential mortgage’ (QRM) test — but so far their pleas have fallen on deaf years.

In Congressional testimony late this week Genworth senior vice president Kevin Schneider brought his case to Capitol Hill, arguing that if MI coverage is not recognized in the QRM, the Federal Housing Administration (FHA) will be overwhelmed with new business with taxpayers bearing “100% of the risk for all low-downpayment loans.”

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