Under the Dodd-Frank financial reform legislation, banking regulators were asked to define a "qualified residential mortgage" (QRM) that would make that loan exempt from certain risk retention rules also adopted under Dodd-Frank. The panel was also asked if this QRM definition should include a minimum down payment. Among the respondents, most said the QRM should include a minimum down payment requirement."Contrary to concerns expressed by certain policymakers, only a small minority of our expert panelists believe that including a minimum down payment requirement in QRM would pose a threat to the housing recovery. The vast majority of respondents – 81 percent – believe that establishing a minimum down payment is a good idea and would ultimately foster a healthier housing market," said Pulsenomics founder, Terry Loebs. "This consensus is consistent with the spirit of the provisional QRM rule drafted by financial regulators, although only about one-third of our panel favors a minimum down payment standard of 20 percent or more."
Bubble Fears Emerge As Experts Predict Home Value Appreciation Will Remain Above 5 Percent This Year
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