REALTORS® urged policymakers to prioritize strong underwriting standards over high down payment requirements that would put homeownership out of reach for otherwise creditworthy buyers. Rather than adopt a complex Qualified Residential Mortgage rule, NAR believes the agencies should follow the strong standards set by the Consumer Financial Protection Bureau for the related Qualified Mortgage Rule.
Thomas warned against other proposals that would restrict lending, such as lowering loan limits and putting private capital in a 10 percent first-loss position, which could inhibit private investors from participating in the secondary mortgage market, especially during periods of economic distress.
“Our goal is to help Congress, and our industry, design a secondary mortgage market model that will serve America’s best interests today and into the future, and ensure a strong housing market and economic recovery,” said Thomas.
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