WEREP Discusses The New Qualified Residential Mortgage [QM]

WEREP Discusses The New Qualified Residential Mortgage [QM]

The Panel was comprised of the following lenders:

Dave Powers, Prospect Mortgage
Brent Bruce, Network Funding
Richard Hegg, South Pacific Financial
Brian Weide, Bristol Financial Group

Qualified Residential Mortgages [QRM] Panel Discussion:

Q1. What’s the overall impact on lenders?

A1. Dave Powers, Prospect Mortgage, “All lenders are in the same boat.”

Q2. Does everyone need to follow the rules?

A2. Brent Bruce, Network Funding, “Yes, everyone needs to follow the rules. ATR: Ability To Repay must be followed.

What’s different is following the QM guideline. If you fit in the QM box you have less liability as a lender.

Q3. Does this affect jumbo loans?

A3. Richard Hegg, South Pacific Financial, “Yes, it will affect jumbos. There are going to be niche markets though.”

Q4. Should I be concerned with files in escrow?

Dave Powers, Prospect Mortgage, “Yes and No. Always be concerned, but no reason to be concerned with QM. Look at the file and review the file. Chances are it won’t be affected if you have DU approval. Do be engaged with our lender though.

Q5. Does this affect a buyer’s buying power?

A5. Brian Weide, Bristol Financial Group, “Simply, No.”

Q6. Is this good or bad for the industry?

Brent Bruce, Network Funding, “The government should stay out of your business. We do need more oversight, but now the government is making underwriting rules. You have a national underwriter. Though the ATR is a beneficial thing, but markets should control themselves.

Richard Hegg, South Pacific Financial, “Government has always been involved. We got carried away and now we’re easing the other way back.”

Q7. Can one bank offer QM and another not?

A7. Richard Hegg, South Pacific Financial, “Yes”.

Q:8  What is the industry doing in this area [Rancho Cucamonga/ Upland] with the loan limits cutting people out of the market?

A8. Dave Powers, Prospect Mortgage, “Down payment assistance programs is the simple answer. More people are taking advantage of them.”

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From Left to Right: Scott Kueny, Brian Weide, Dave Powers, Richard Hegg, Brent Bruce, Ryan Orr

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