Managing The Change For Originators in the New World of QM

Much has been written about the impact of the Qualified Mortgage (QM) and Ability to Repay (ATR) rules from a legal and compliance perspective. Have you noticed whether the stress of this buzz, throughout your company and the industry, is causing originator sales paralysis? In a recent training class of highly experienced originators, a few with 40 years in the industry and many more with over 30 years, their perception of the QM and ATR regulation was like a circus. Originators are watching management directing an act riding in circles on unicycles, another act is walking a tightrope, others are swinging from the trapeze and still another act is trying to get the animals under control. Oh and don’t forget the clowns running around the perimeter. I’ll leave it up to you to determine which act is the attorney, the compliance staff, the underwriters, the trainings or the department managers.