WASHINGTON, DC – January 13, 2011 – (RealEstateRama) — The American Bankers Association sent a letter today to the heads of the eight regulatory agencies involved in writing new rules on risk retention for mortgage loans as required by the Dodd/Frank Act. ABA supports a broad safe harbor, known as the Qualified Residential Mortgage or QRM, which would not be subject to risk retention requirements.ABA said imposing too broad a risk retention requirement is likely to cause lenders to leave the marketplace, reduce the amount of credit available to eligible borrowers, and harm the fragile economic recovery.
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