QRM are “Qualified Residential Mortgages” as defined in Dodd-Frank Act. They are special mortgages that are exempt from “skin-in-the-game” requirements, i.e. securitizers don’t have to retain risk of at least 5% when selling mortgage bonds backed by these “low risk” mortgages.

You can review below QRM specifications and their implications.
QRM And Its Implications

There is quite a bit of discussion going on in Capitol Hill and Wall Street, among others, on what are the implications of these specifications on market participants, borrowers, and government housing goals.

No matter how broadly or narrowly QRM is defined, I believe that the overall cost of mortgages will go up in future so we better be ready for the change.