The Coalition for Sensible Housing Policy
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WaPo Editorial Response

The Coalition for Sensible Housing Policy

For Immediate Release: September 6, 2013

Contact:  Lindsay Gilbride: lgilbride@clsdc.com

 

STATEMENT BY THE COALITION FOR SENSIBLE HOUSING POLICY IN RESPONSE TO THE SEPTEMBER 6, 2013 WASHINGTON POST EDITORIAL

A Dodd-Frank capitulation on mortgage down payments”

Washington, D.C. – Today, the Coalition for Sensible Housing Policy released the following statement in response to an editorial by the Washington Post regarding a revised proposal by federal regulators to define the Qualified Residential Mortgage (QRM) rule:

“The housing crisis was not caused by low down payment lending, but rather by lapses and shortcuts in solid underwriting and by the introduction of complex loan products that were too risky for most consumers.  The QM rule and re-proposed QRM rule adequately addresses these issues.

“In fact, QRM as re-proposed will do precisely what Dodd-Frank intended; help to avoid another meltdown in the mortgage-backed security market.  To suggest that the absence of a large down payment requirement in the rule fails to live up to Dodd-Frank or will lead to higher defaults is ill-informed.  While regulators have decided to base the QM and QRM definition on other, reliable indicators of mortgage default, down payments are and will continue to be required by lenders, investors, insurers and guarantors as part of their own underwriting requirements. 

“As a wide range of experts agree, the new rules will help ensure rigorous underwriting and affordable lending remains the norm.  To safeguard consumers, protect investors, and preserve continued access to affordable mortgage credit, regulators deliberately and thoughtfully aligned QRM and QM.  This is the best solution, and was the right decision by the federal regulators.”

 

 

The Coalition for Sensible Housing Policy is a diverse coalition of 50 consumer organizations, civil rights groups, lenders, and real estate professionals united in their opposition to high down payment requirements that could freeze credit-worthy Americans out of the housing market. For more information, including a full list of members, visit www.sensiblehousingpolicy.org.

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