So, you're thinking about buying a home. You haven't won the lottery, so you're going to use a mortgage. I hope you've been saving your pennies - 5 million of them. If regulators in Washington have their way, that's what it's going to take to buy an average-priced home in Austin.
Last summer, Congress passed a sweeping overhaul of the financial system called the Dodd-Frank bill. That bill created a new class of mortgage loans called "qualified residential mortgages" (QRMs). This class is important because the bill makes it harder for mortgage lenders to securitize any loan that is not a QRM, and securitization is the grease that makes the mortgage market work and keeps interest rates low.
The problem is the bill left it to regulators to define a QRM, and as regulators seem apt to do, they have made a mess of things. The proposed definition for QRM is a 20% down payment with other limiting restrictions. In Austin, to buy a $263,700 average-priced home, that means you would need $52,740 for the down payment.
Senators inserted the QRM language into Dodd-Frank in an effort to encourage less risky lending. But as with a lot of government meddling, the unintended consequences may be horrendous. Many industry pundits expect the QRM to become the new "conforming" mortgage, the loan product offering the lowest interest rates. Non-QRM loans are likely to have interest rates as much as 2% higher.
The real estate industry and consumer groups are united against this proposed definition. The Community Mortgage Banking Project released a report in March that analyzed 33 million home loans written between 2002 and 2008. The results showed higher down payments had a very small impact on mortgage defaults. Doubling the down payment from 5% to 10% only reduced the default rate by 0.2% to 0.3%, and increasing the down payment requirement to 20% would eliminate between 27% and 40% of potential homebuyers from eligibility for a loan.
Consumer groups point out that middle-class and minority borrowers would feel the greatest impact from the proposed definition. A recent study showed it would take the average consumer more than a decade to save the required 20% down payment in most parts of the country. Homebuyers unable to afford the minimum down payment would be considered high risk even if they have an otherwise stellar credit history.
The senators responsible for QRM recently wrote regulators advising them that they intentionally did NOT include a down payment requirement in the definition and they never intended the definition to be so strict. More than 160 House lawmakers also wrote to regulators stating that the "overly burdensome dictate could threaten a full-fledged economic recovery."
Regulators have responded to all this pressure by extending the comment period for the definition to Aug 1st. It is not clear whether regulators are having second thoughts, but at least this gives lawmakers, consumer group, industry representatives, and YOU more time to encourage them to develop a more reasonable definition.
If you have a mortgage question, please leave a comment below, and I'll address it in an upcoming column.
Fitness Rebrand
Popular fitness events group in Austin launches new social 'arm'
Austin's famously active population has been attending movement sessions and other community hangs by Swift Fit Events since 2020. But in 2026, the company is starting a new era under the banner of Swift Fit Social, a new "arm" of the company that's devoted to events that are more about community than "traditional fitness formats," according to a press release.
This isn't fully new for Swift Fit, which has previously hosted singles yoga, zero-proof parties, kids' activities, and more. However, many of its events are as straightforward as a weekly yoga class outside the food hall Fareground. The events projected for Swift Fit Social in 2026 are more like festivals: multi-faceted wellness events that might happen to include exercise as one piece, rather than the main activity.
Swift Fit Events' website now focuses on corporate partnerships and event rentals, while the Swift Fit Social page houses the community events calendar.
Upcoming Swift Fit Social events include:
- January 24, 2026: Glow & Grow: A New Year Kickoff. This event is all about resolutions and will show off a sort of expo including fitness samplers, experiences, mocktail bars, and more.
- February 15: Marathon Finish Line Experience. Runners and their crews can stretch together, "spectate in style," and hang out afterward for recovery perks from brands, plus other treats from food and beverage partners.
- Mid-May 2026: Bloom & Flow. This one combines yoga and other activities Austin yogis tend to love: tarot readings, henna, hammocks, drum circles, sound baths, and more.
- Mid-July 2026: Wellness Wonderland. Here's another expo-esque event with "the hottest new wellness experiences," live music, and a social lounge.
- Late September 2026: Wags & Wellness. Pets get pampered and compete in contests. Plus, dog owners get to meet each other — and people at this event might have more in common than the usual dog park attendees.
The press release announcing this new branding delineation also calls attention to Swift Fit Social's new CEO, Candace Kief, a long-distance runner who previously worked in an upper management role with Orangetheory Fitness along with some other fitness brands. Kief's drive to host events and "the clear appetite for more inclusive, culturally rooted experiences," according to the release, resulted in the brand shift.
“Swift Fit Social was born from watching what happens when people feel like they truly belong,” Kief says. “These events aren’t just about fitness—they’re about creating space for connection, joy, and shared energy. Whether you’re a seasoned athlete, a casual movement lover, or someone new to the city, there’s a place for you here.”
