ICBA, groups urge agencies to delay QRM review

ICBA and other groups asked the banking agencies to delay their review of the Qualified Residential Mortgage credit risk retention rule until the Consumer Financial Protection Bureau completes its upcoming rulemaking on the Qualified Mortgage rule.

In a joint letter, the organizations noted that QM standards drive the risk-retention requirements in QRM, which can legally be “no broader than” the definition of QM.

The CFPB rulemaking to deal with the expiration of the QM "patch" scheduled to expire on Jan. 10, 2021, will directly affect which loans would require risk retention when placed into a securitization. Therefore, the interagency review should follow the CFPB rulemaking.