Federal regulators have recently proposed a rule that would seek to define qualified residential mortgages under the Dodd-Frank Wall Street Reform and Consumer Protection Act. However, this movement is being met with opposition from the National Association of Realtors, who claim that, in doing so, the regulators will be preventing many from attaining homeownership.
"As the leading advocate for housing and home ownership, NAR firmly believes Congress intended to create a broad QRM exemption - strong evidence shows that responsible lending standards and ensuring a borrower's ability to repay have the greatest impact on reducing lender risk, and not high down payments," said NAR president Ron Phipps.
Furthermore, Phipps relayed that, because down payments have often been the largest obstacle for potential homebuyers, increasing the amount required up front will divert many buyers to the Federal Housing Administration. This, in turn, will then raise the costs for these potential borrowers when the interest rates and fees are raised. As a result, many previously eligible borrowers would then be priced out of the market.
With the housing market showing increased improvement in many aspects during the last several years, the last thing NAR wants is for the forward movement to be halted because of this stipulation.
Even with unemployment rates on the decline, many borrowers would still be affected by the proposed rule. For instance, 50,700 more jobs became available in Houston in February 2011, representing a 48 percent increase. However, with higher down payments required, these new workers still might not be able to afford Houston properties.  
Courtesy of 2M Realty News