Two new regulations, one already written by the Consumer Financial Protection Bureau and one pending from regulators including the Federal Reserve and the Federal Deposit Insurance Corp., will define the extent to which lenders and originators are protected from potential default. In January, the CFPB released its definition of a qualified mortgage, a loan that doesn't require lenders to independently verify a borrower's ability to repay it. The industry is waiting for regulators to release the definition of a qualified residential mortgage that would spell out which loans banks can sell without having to maintain any exposure to default risks.

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