Lenders are lobbying lawmakers to slash in half the proposed down payment threshold for risk retention, according to MF Global researchers. Researchers said regulators are considering a qualified residential mortgage (QRM) standard that would require banks to retain risk on loans for which 20% of the property price is put down; banks are said to be asking that the down payment for holding risk be reduced to 10%. Researchers believe the 20% down payment will be eventually adopted but expressed concern that fewer borrowers may be able to meet that standard or other tougher qualifications to obtain a mortgage.

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