Risk Retention Regs Boost Mega-Bank Market Share
ByPosted To: MND NewsWire
Debate continues over including a 20 percent down payment requirement in new regulations defining “Qualified Residential Mortgages” (QRMs) under the Dodd-Frank Wall Street Reform and Consumer Protection Act. A QRM would be exempted from the rule requiring lenders to retain a 5 percent interest in each mortgage it securitizes; a policy called ” risk retention. ” The Community Mortgage Banking Project (CMBP) released a report Thursday criticizing such a down payment requirement because, among other reasons, it would be good for mega banks. And how do we know the report asked; because Jamie Dimon told us so! Dimon, CEO of JP Morgan Bank was quoted in a recent report from Citigroup as saying that such a requirement could ultimately end up as a positive for the larger players such as JP Morgan and…(read more)