QRM stands for "Qualified Retail Mortgage." A Qualified Retail Mortgage is a mortgage originated and held by a qualified banking institution. This type of mortgage is insured by the federal government, which guarantees that the holder will repay the loan even if the borrower defaults.
To qualify for this type of mortgage, the borrower must have a good credit history and a down payment of 20%. The interest rate on a Qualified Retail Mortgage is typically lower than the interest rate on a conventional mortgage.