The Consumer Financial Protection Bureau garnered a positive reaction after the release of the "qualified mortgage" rule, which governs mortgage underwriting. The industry is optimistic that the still-pending securitization rule may also turn out better than expected.

"The CFPB earlier this month used a broader definition for QM than previously feared, affording more loans legal protection under the CFPB's ability-to-repay standards. The bureau established a clear safe harbor for prime loans meeting QM criteria," writes American Banker's Rachel Witkowski.

That positive development has intensified attention on an ongoing, related effort by other regulators to define so-called "Qualified Residential Mortgages", or loans exempt from pending securitization restrictions. Industry observers hope the related securitization rule will similarly expand the pool of loans exempt from credit risk retention.

"The fact that QM is much broader and more sound and good for lending would lead me to think, or at least hope, that it is taken into consideration when [regulators are] looking at QRM," said David Coleman, managing director at KPMG Advisory.

Under the Dodd-Frank Act, lenders must hold 5% of the credit risk for mortgages they securitize. The reform law states six financial regulators, not including the CFPB, will define QRM.

For the full piece see "CFPB Mortgage Rule Signals Relief for Securitizers" (may require subscription).