WASHINGTON (MarketWatch) — As the Federal Reserve plans to announce rules Wednesday on securitization and mortgage exemptions, there are conflicting views on how this will affect the housing market.

The announcement will come from six federal regulators who were in charge of creating what is called the risk retention/qualified residential exemption rules, which are required under the financial reform law known as Dodd-Frank.

A report by Keefe, Bruyette and Woods released Thursday expected the regulation to be similar to the Consumer Financial Protection Bureau’s qualified mortgage rule. Like the qualified mortgage rule, the analysts at Keefe, Bruyette & Woods do not expect the final qualified residential exemption rule to require a high down payment.

The QM rule under the CFPB’s jursidction was created to ensure loans were being made to credit worthy borrowers and required verification of consumer’s credit history. That rule went into effect in January.

But some are concerned about the new regulation. John Councilman, president of the Association of Mortgage Professionals, stated he is particularly concerned about risk retention hurting the housing market.

“If we have any risk retention percent, it will have a huge dampening effect,” he said, adding that profit margins are already thin and it is difficult to know where the risk retention would come from.

“If you are expected to have 5%(risk retention) before you can market, you have a serious problem,” Councilman said.

Councilman said he hoped the regulation could be delayed at least until the economy recovered.

“I don’t think you can prepare for it,” he said. “It takes so much money to participate. We don’t where it would come out.”

But David Stevens, CEO of the Mortgage Bankers Association and a former assistant housing secretary to the Federal Housing Finance Administration, said he does not think it will have much of an effect on the housing market since the rule will likely equal the QM rule.

“We showed them was you didn’t need to establish down payment barrier in QRM because QM already guaranteed no bad loans would be going into securitization,” Stevens said regarding discussions around the regulation.

Joseph Pigg, senior counsel for the American Bankers Association, said if the QRM rule equaled QM there would not be much of a change.

“To the degree QM is enforced and everyone is learning to function within it, I think it would have relatively minimal impact,” Pigg said, adding the market is still getting used to the QM rule. “We’re still in an adjustment period where lenders are getting comfortable. We are still in a transition period.”