With the Aug. 1 deadline fast approaching for comments on Credit Risk Retention and the Qualified Residential Mortgage rules, Cliff Rossi, an executive in residence, tackles the topic with his latest policy briefing. The proposed QRM provisions oversimplify the risk tradeoffs among borrower, product and collateral attributes in such a manner that is likely to raise borrowing costs and prevent a large segment of well-qualified borrowers from obtaining a mortgage. Rossi’s solution: A simple QRM scorecard that could be developed and easily deployed to the industry that would meet the needs for transparency and allow for prudent risk-taking while permitting well-qualified borrowers to participate in housing at reasonable costs.
Read Rossi’s briefing (PDF)
Rossi has more than 25 years in the banking and regulatory industries, most recently at Citi Group where he headed risk for their domestic and global mortgage portfolio.
Contact: Clifford Rossi, executive-in-residence and finance teaching fellow
Email: crossi@rhsmith.umd.edu; Phone: 301-908-2536
| Related Link |
| August 1, 2011, American Banker "QRM Rule Should Recognize Life’s Full of Trade-Offs" - Cliff Rossi |
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