Decisions such as the definitions for qualified mortgage and qualified residential mortgage are being made in isolation that will have unintended consequences when they are rolled out, such as limiting competition between private mortgage insurers and the Federal Housing Administration, an executive with Genworth Mortgage Insurance told attendees at the Mortgage Bankers Association’s National Secondary Market Conference in New York.

James Bennison, senior vice president of strategy and capital markets, said the proposed QM definition would exclude FHA premiums from the points and fees calculations, but not the comparable private mortgage insurance premiums.

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