How will QM change the mortgage market in 2014?

This is the sixth installment of’s Think Tank series which features in-depth…

Georgia (Jan 23, 2014)This is the sixth installment of’s Think Tank series which features in-depth questions and answers from the nation’s top real estate professors and professionals.


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Since new regulations will shape the mortgage market in 2014, we wanted to explore what the impact will be onmortgage rates, mortgage lenders and consumers in what is expected to be a more restrictive lending environment.  Specifically, the Consumer Financial Protection Bureau’s (CFPB) Qualified Mortgage Rule (QM) that took effect on Jan. 10, 2014, requires mortgage lenders to fully consider the consumer’s “ability to repay home loans before extending them credit.”

We asked professor Robert S. Sichel, J.D., L.L.M., professor of business law at Kennesaw State University, professor Kemberley Washington, CPA, professor of accounting at Dillard University, and Dr. Ken H. Johnson, Ph.D., faculty director at the Tibor and Shelia Hollo School of Real Estate how the CFPB’s QM rule will affect homeowners and borrowers in 2014. Will these new regulations ultimately protect the consumer?

Q: What do you think the impact of the new Qualified Mortgage (QM) rule, which takes effect in January 2014, will be on the lending business? Will this make it more difficult for borrowers to get a loan?
Robert S. Sichel, J.D., L.L.M., Attorney at Law
Professor of Business Law at Kennesaw State University

A: The new Qualified Mortgage (QM) rules should not have any substantial impact on the lending business other than adding another layer of paperwork to an already cumbersome process of closing a mortgage loan. The more stringent underwriting and documentation criteria outlined in the QM rules have already been implemented, for the most part. So overall, the QM rules may very well make it easier to obtain a mortgage loan because of the certainty lenders now have that a loan will be appropriate for the borrower. … 


A leader in innovative teaching and learning, Kennesaw State University offers undergraduate, graduate and doctoral degrees to its nearly 43,000 students. With 11 colleges on two metro Atlanta campuses, Kennesaw State is a member of the University System of Georgia. The university’s vibrant campus culture, diverse population, strong global ties and entrepreneurial spirit draw students from throughout the country and the world. Kennesaw State is a Carnegie-designated doctoral research institution (R2), placing it among an elite group of only 6 percent of U.S. colleges and universities with an R1 or R2 status. For more information, visit