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Lending Leaders Tackle QM Hurdles in Panel Discussion

When it comes to next year's regulatory obstacles, CEOs and senior executives from the mortgage industry's biggest players agree on one thing: Education will be key to keeping business going smoothly.

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In a panel at the ""2013 Realtors Conference and Expo"":http://www.realtor.org/convention.nsf/, high-level names from Quicken Loans, Wells Fargo Home Mortgage, JPMorgan Chase, and Bank of America discussed the qualified mortgage (QM) guidelines, which go into effect in January 2014. While the initial implementation of these rules is expected to restrict lending to some buyers in the short-term, panelists agreed that business should even out over time.

Because the QM rule lays out specific criteria for accepted loans, it's going to be more important than ever for lenders to retain significant documentation to back up their [COLUMN_BREAK]

underwriting decisions--something that professionals and consumers alike need to keep in mind, says Matt Vernon, home loan sales executive for BofA.

""It's important for Realtors to be educated about the new documentation requirements so they can work with buyers and meet lender expectations,"" Vernon said.

With a shortage of home inventory lifting competition in markets across the United States, one of the biggest concerns is the impact that more stringent standards will have on approval timelines. While timelines can vary depending on many factors, Vernon says the process is quicker and smoother when borrowers are educated about their lender's application requirements.

Bill Emerson, CEO of Quicken Loans, agreed: ""Our mission is to get someone approved. With clarity and transparency, buyers will know exactly what is needed of them. We want to do this in a manner that is as stress free as possible for consumers and Realtors.""

Despite the complications ahead, the leaders on the panel agreed that they expect a healthy improvement in the market next year, with purchase originations dominating the scene as interest rates rise and refinancing continues to trend downward.

""In spite of the economic crisis, Americans still want to be homeowners. That hasn't changed one bit,"" said Mike Heid, president of Wells Fargo Home Mortgage. ""Homeownership is at the heart of what we do and that is worth preserving.""

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