As safe as the qualified mortgage space might appear to be, there have been a number of challenges to address and overcome for smaller institutions originating QM loans intended for sale in the secondary market, according to a representative of one such lender at the American Bankers Association’s 2014 regulatory compliance conference in New Orleans this week. Bruce Schultz, senior vice president and head of secondary mortgage operations for SpiritBank, a family-owned community bank in Tulsa, OK, told attendees he’s heard from several industry peers who have expressed the view that the secondary market ‘would be a slam-dunk’ for his institution under the QM rule because “‘you’ve got automated underwriting.’” Maybe not...