The Dodd-Frank Act requires lenders that securitize mortgage loans to retain 5% of the credit risk unless the mortgage is a Qualified Residential Mortgage (QRM) or is otherwise exempt. Six federal regulators originally issued a proposed rule that narrowly defined a QRM to require a 20% down payment, stringent debt-to-income ratios, and rigid credit standards.

Late 2013, the rule was re-proposed to match the definition of a “QRM” with the definition of the Consumer Financial Protection Bureau's Qualified Mortgage rule, or “QM”. In addition to the main proposal, regulators introduced an unfavorable alternative that would require buyers to put 30 percent down to qualify for a QRM loan, a restrictive measure that dramatically favors the wealthy. NAR advocated for adoption of the preferred standard which is in line with the congressional intent of a QRM exemption that includes a wide variety of traditionally safe, well documented and properly underwritten products.

In October of 2014, regulator released the final rule, agreeing with NAR and matching the definition of QRM with QM. The rule took effect in late 2015.