Government Punts on Meaningful Mortgage Standards

Wall Street Journal

June 26, 2014, By Daniel Gallagher

Until recently, the Securities and Exchange Commission had been the only party to interagency negotiations over mortgage-quality standards taking a principled stand to make those standards meaningful. We are disappointed that there may now be majority support on the SEC to surrender the definition of “qualified residential mortgage” (QRM) to the Consumer Financial Protection Bureau (“Softened Mortgage Rule Advances,” Money & Investing, June 11). This rule making marked one of the few opportunities offered to regulators in the Dodd-Frank Act to address the failed federal housing policy that caused the financial crisis, and regulators’ failure to seize it represents another victory for special interests.

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