As the one year anniversary of the Qualified Mortgage (QM) loan guidelines approaches, the time is right to reflect upon the impact and the uncertainty of QM vs. non-QM loans. We have spent the past year working with QM loans and developing smart solutions beyond QM to serve more borrowers. The non-QM terminology lends itself to the perception that a loan and/or borrower is somehow inferior to one who is “qualified.” As a result, there is skepticism, uncertainty and fear associated with “non-QM,” which is misguided.
Today is the day for ATR/QM and every lender’s head has been swimming with acronyms, ratios and percentages to get their people ready. To simplify matters (if that’s possible), the primary issues at hand are broken into three distinct categories: