As part of the Dodd-Frank Wall Street Reform and Consumer Protection Act, seven federal agencies are jointly defining a Qualified Residential Mortgage (QRM). Such mortgage loans will be exempt from the law's risk-retention requirements because they are considered to be of "good" credit quality and thus, less likely to default. The potential impact of creating this new category of loans has taken center stage recently, with some reports indicating that the change will negatively affect the U.S. residential mortgage market and sustainable homeownership. There is some disagreement, however, as others claim that QRMs represent positive change--necessary to lead the country's housing market into recovery.
