Fed Proposing New Mortgage Regulation To Reduce Risks

A new regulatory proposal offered Wednesday is trying to ensure that the country’s housing-finance system is protected from another mortgage meltdown.

The plan from the Federal Reserve and five other regulators calls for lenders to keep a 5% stake in the credit risk for certain securitized loans that don’t meet “qualified residential mortgage” standards.

These QRM loans are designed to be particularly safe by making sure that borrowers can afford their mortgages. The idea behind the rule is to force lenders to have “skin in the game” when they make and securitize loans that don’t meet QRM standards.


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Mingze Wu

Mingze Wu

Currency Analyst at Market Pulse
Based in Singapore, Mingze Wu focuses on trading strategies and technical and fundamental analysis of major currency pairs. He has extensive trading experience across different asset classes and is well-versed in global market fundamentals. In addition to contributing articles to MarketPulseFX, Mingze centers on forex and macro-economic trends impacting the Asia Pacific region.
Mingze Wu