Overview

When regulators drafted rules to implement the historic Dodd-Frank Act, they included a new requirement that homeowners make a 20 percent down-payment in order to be eligible for a lower-cost Qualified Residential Mortgage (QRM).  Congress had considered and explicitly rejected such a provision when they passed the law.  Opposition to the new rule was wide spread and included diverse organizations.  Our firm was hired to bringing them together with one voice, which would magnify the seriousness of the issue and create added momentum for changing the rule.

Our Work

In response, our firm helped to launch the Coalition for Sensible Housing Policy, a diverse coalition of 46 consumer organizations, civil rights groups, lenders, real estate professionals and insurers.  We worked with the Coalition to develop a detailed white paper analyzing the impact of the proposal on responsible borrowers and the nation’s fragile housing recovery.

Results

The paper was released at a Coalition press conference held with congressional supporters.  Our firm continues to work with the Coalition to advocate for a final rule that would encourage sound lending without an unnecessary high down-payment requirement.