Origination News reports a congressional hearing heard both sides of the aisle criticizing federal regulators for exempting Fannie Mae and Freddie Mac from the five percent risk retention policy on non-qualified residential mortgages (QRMs).  The Dodd-Frank Act (Dodd-Frank) exempts Federal Housing Administration (FHA) and Veterans Affairs (VA) loans, but not Fannie and Freddie.  They were also critical of the proposal requiring 20 percent down on single-family QRM loans.  Members of Congress and mortgage industry executives agree that down payments lower than 20 percent for qualified borrowers with no risk retention would be an improvement.  Meanwhile, private mortgage insurance (MI) companies are concerned that they will not be competitive with GSE’s MI.