The proposed alignment of the qualified residential mortgage (QRM) rule with existing mortgage risk retention standards will ease the underwriting and securitization of prime borrower loans but are the rules too lenient on borrowers?

Fitch Ratings said in a report today that it expects that the alignment of QRM with qualified mortgage (QM) rules would help to ease the transition to the new rules for originators, as well as reduce the cost impact. Securitization issuers are exempt from the 5% credit risk retention rule on loans that are considered QRM.  

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