Fifteen trade groups together sent a letter last week urging politicians to reconsider the comment period for the proposed rule implementing the Risk Retention and Qualified Residential Mortgage (QRM) provisions of the Dodd-Frank bill.
The comment period for the Risk Retention and provisions, currently open until June 10, should be extended until at least July 22, the group recommends to be consistent with comments on the qualified mortgage (QM) presumption/safe harbor under the Ability to Repay provisions.
“In reviewing the notice of proposed rulemaking (NPRM), it is clear that if finalized, it would have an enormous impact on the availability and costs of mortgage credit and the housing market for years to come,” the letter states. “A thorough response to the NPRM by affected entities will require significant data development, analysis and validation that cannot be reasonably completed by the June 10, 2011, comment deadline.”
The design and feedback for the rules should be consistent, the letter urges.
“To prevent undue regulatory burden, both the QM and QRM should be consistent; indeed, Dodd-Frank requires that the QRM not be broader than the QM,” the letter writes. “Accordingly, issues under both rules should be considered and addressed together by the public.”
The groups behind the letter include the American Bankers Association, the Mortgage Bankers Association, National Association of Home Builders, National Association of Realtors, National Council of La Raza and National NeighborWorks Association, among others.
View the letter.
Written by Elizabeth Ecker