Demand for QRM Review Could Come from Fed Nominee
By Bonnie Sinnock
A call for review of the pending qualified residential mortgage rule could be among Fed chair nominee Janet Yellen’s future actions given her concern with risks tied to mortgages with higher loan-to-value ratios, according to a Federal Financial Analytics Inc. report. “Ms. Yellen takes pride in her tough stand on mortgage rules while head of the Federal Reserve Bank of San Francisco and may well demand a review of the pending QRM based on her fears that higher-LTV loans pose greater risk,” Karen Shaw Petrou, managing partner of FFA, said in the report. But whether she can do more about it depends on how quickly the complicated proposal moves, a Federal Financial Analytics report suggests. “She may not have the opportunity to intervene in this arena if the overall rule is finalized by yearend as some within its inter-agency process have hoped,” the report said.