The risk retention rules will also define how securitizers must meet the risk retention requirement for mortgages that are not QRMs, and the cost associated with this requirement may affect mortgage costs. I won’t comment today on the rulemakings that are still under way.
However, I believe that, as we layer on additional requirements, it is important to think about the implications of the rules that have already been finalized. So I would like to share my assessment of some potential implications of the QM rule.