NAACP Strongly Supports the Final Rules to Define a Qualified Residential Mortgage

Baltimore, MD — After thorough review, the NAACP issued a statement today in strong support of the new Qualified Residential Mortgage rule. The new rules, which require several federal agencies to define a Qualified Residential Mortgage (QRM) were mandated by the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010.  They are one of the key elements of the law intended to stop predatory lending while ensuring the availability of sustainable, affordable credit to qualified home buyers.

The final QRM rule is very similar to the “Qualified Mortgage” rule previously put out by the Consumer Financial Protection Bureau.   The final QRM rule also dropped the proposed, NAACP-opposed, down-payment requirements, thereby recognizing that responsible loan terms and diligent underwriting standards are the most important factors for a safe, sustainable housing market.

From Cornell William Brooks, NAACP President and CEO:

“We have reviewed the rule and we feel that it is an important first step in the struggle to help communities of color, specifically African Americans and Latinos, obtain sustainable, affordable mortgages. Together, the two rules address the largest abuses in mortgage lending during the lead up to the economic crisis and provide lower income borrowers and lenders alike with much needed consistency.”

From Hilary O. Shelton, Director of the NAACP Washington Bureau and Senior Vice President for Policy and Advocacy:

“We applaud the regulators for coming out with this strong rule, and we likewise thank and celebrate the groups and individuals, including bipartisan members of the U.S. Senate such as Senator Isakson (GA), Senator Landrieu (LA) and Senator Hagan (NC), who urged the regulators to come out with this solid step forward. Across our country, from Louisiana to Maine; from Florida to Oregon and all places in between, this rule will do much to guarantee sustainable, affordable homeownership.”