Study Finds QRMs to Force 60 Percent of Creditworthy Borrowers Into High-Cost Loans

The Center for Responsible Lending (CRL) has announced the release of its latest study, "Balancing Risk and Access: Underwriting Standards for Qualified Residential Mortgages." Findings of the report show that government-mandated downpayment rules as established by the qualified residential mortgage (QRM) initiative, could push 60 percent of creditworthy borrowers into high-cost loans or out of the market altogether. The QRM proposal defines a high-quality mortgage as one with at least a 20 percent downpayment, or possibly 10 percent.Click to continue