11. How does the Dodd-Frank incentivize banks to only offer mortgages which they believe will not default?
- Of the mortgages that a bank initiates, at least 5% must be Qualifying Residential Mortgages (QRMs).
- A bank must sell at least 5% of the Qualifying Residential Mortgages (QRMs) that it initiates.
- A bank must hold at least 5% of the Qualifying Residential Mortgages (QRMs) that it initiates.
- With the exception of Qualifying Residential Mortgages (QRMs), a bank must hold 5% of the mortgages that it initiates.