The changes will reflect nervousness onrnthe part of regulators about damaging the housing recovery andrnreflect lobbying from both lenders and consumer groups who maintainrnthe earlier proposals were too harsh and could prevent first-timernhome buyers and lower income borrowers from obtaining mortgages. </p

Members of Congress have also weighed in, maintaining that thernportion of the QRM raising downpayment levels to 20 percent fly inrnthe face of Congressional intent. The Wall Street Journal hasrnreported that one proposal would raise the minimum downpayment to 30rnpercent and the Reuters story seems to imply that this would be anrnattempt on the part of regulators to force banks to make non-QRMrnloans or stop lending. </p

Reuters quotes David Stevens,rnpresident and chief executive officer of the Mortgage BankersrnAssociation as stating, “The QRM rule as it was originallyrnproposed would have hampered private capital from coming back intornthe mortgage market and would have raised costs for the middle classrnand first time home buyers.” </p

None of the regulatory agencies would comment about the rumoredrnchanges, Reuters said. The rule-making process is expected to bernfinalized by the end of the year

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