For those in the mortgage industry who have been hibernating for a while, QM means Qualified Mortgage. Lenders are scrambling to make sure they are totally compliant in preparation for the QM rules that go into effect tomorrow.
Do you remember the doomsdayers when Y2K was going to happen who were talking about all the computer systems were going to crash. OK, I have to admit, we prepared by setting up the best back up system that we could find and backed up everything Dec. 31st, 1999, just in case.
Lenders, banks and loan officers are going through the same kind of stuff. The lenders are sending out new guidelines, trainings and once they are out are revising every few minutes. Sure all this stuff is necessary and there are some of the same doomsdayers (is that a word?), no matter you get the idea. They are talking about lending will never be the same. If I followed this kind of thinking every time there are new guidelines or regulations, I would do something drastic. Forget it, not going to happen.
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Guess what, on the mortgage side we will make some adjustments. There are going to be some folks that may not qualify to get a mortgage, but with proper coaching it may just take a bit longer to get them qualified. They may have to pay off some additional debt or purchase a lesser expensive home.
The mortgage and real estate industry have some very resilient professional and remember one thing. Just like Y2K the sun will come up the next morning and we’ll all say the same thing about QM, what’s the big deal.
