SOURCE: Realogy Corporation

Realogy Corporation

July 25, 2011 05:00 ET

Realogy Files Comments With Regulators Regarding Dodd-Frank Mortgage Rules, Recommends Enhanced Disclosures

PARSIPPANY, NJ--(Marketwire - Jul 25, 2011) - Realogy Corporation, a leading global provider of real estate and relocation services, today announced the Company filed comments with the six regulatory agencies responsible for drafting the rules regarding Qualified Residential Mortgage, or QRM, under the Dodd-Frank Act.

Dodd-Frank provides that a lender must retain 5% of any loan not otherwise exempt under the to-be-determined definition of a Qualified Residential Mortgage. The QRM definition proposed by the regulatory agencies would effectively require home buyers seeking mortgage financing to make a down payment of at least 20% of the purchase price. Realogy notes in its comments, among other things, that, although it agrees with other groups who have commented publicly that this proposed QRM definition is unnecessarily narrow, regulators should rethink the Dodd-Frank retention requirement entirely and consider a fundamentally different approach that Realogy refers to as the "Enhanced Disclosure Approach." A full description of the Enhanced Disclosure Approach can be found in its public filing.

"We believe the current QRM definition that includes a down-payment requirement of 20% would create unduly tight credit standards and place homeownership out of reach for millions of potential buyers," said Richard A. Smith, president and CEO, Realogy Corporation. "This was not the intent of Congress when the Dodd-Frank Act was passed, and we remain hopeful that the regulators will make a course correction, wisely choosing not to damage an already fragile housing market."

For further details on the real estate industry's view of the impact of this QRM issue, read NAR's Regulatory Issue Brief.

Realogy Corporation, a global provider of real estate and relocation services, has a diversified business model that includes real estate franchising, brokerage, relocation and title services. Realogy's world-renowned brands and business units include Better Homes and Gardens® Real Estate, CENTURY 21®, Coldwell Banker®, Coldwell Banker Commercial®, The Corcoran Group®, ERA®, Sotheby's International Realty®, NRT LLC, Cartus and Title Resource Group. Collectively, Realogy's franchise systems have approximately 14,600 offices and 260,400 sales associates doing business in 100 countries and territories around the world. Headquartered in Parsippany, NJ, Realogy is owned by affiliates of Apollo Management, L.P., a subsidiary of Apollo Global Management, LLC, a leading global alternative asset manager. Information about Realogy, including corporate background and press releases, is available through the company's website at www.realogy.com.

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