Criticisms Ĭritics of the mortgage planning approach counter this claim with the statement "sometimes people just want a mortgage and then to be left alone". To counter this, supporters of certified mortgage planning recommended that consumers work closely with financial planners and mortgage planners to create a plan of action that takes into account the larger market forces and their own long-term goals. They argue this strategy can lead to serious misallocations and miscalculations that heavily impact the long term financial picture of borrowers. Proponents of certified mortgage planning argue that consumers often only tap into home equity during times of personal financial crisis. They must also pursue and document ongoing training regarding the mortgage banking industry, the markets that impact home finance products, the role of interfacing with financial services professionals, and the methods, means, and ethics associated with advising consumers on home mortgages. Mortgage planners must have regional mortgage licensing, undergo structured training, and pass a battery of tests in order to be certified by private certified mortgage planning institutions. The deliverable of a certified mortgage planner is a "mortgage plan" designed to maximize home equity while wisely managing debt. Tasks of a certified mortgage planner Ĭertified mortgage planners work in concert with other finance professionals, including certified financial planners, to ensure that consumer home finance products are in alignment with market trends, both current and historic. Certified mortgage planners aim to educate consumers into the nuances of home loans, and assist them to find the most beneficial mortgage product and payment strategy. While superficially simple, mortgages are very complex financial products that are difficult for some lay consumers to understand.
To fulfill demand from some consumers for agency or advisory services, some mortgage professionals took an arguably different approach, and created the concept of certified mortgage planning. This factor, in conjunction with the rise in unconventional mortgage products between 19, has led to some brokers taking advantage of unsuspecting consumers.
#AIM MORTGAGE LICENSE#
While mortgage brokering license requirements do exist, they are maintained on a state level, and enforcement is often difficult. This is in contrast to other related occupations, such as financial advisors and real estate agents, where agency is more clearly defined. Proponents of mortgage planning, such as NAMP, argue that mortgage brokers have no fiduciary obligation to the consumer and are essentially independent contractors. The effort to create a certification process around the mortgage planning concept was stemmed from those within the mortgage industry desiring to combat the negative effects of the mortgage industry having been commoditized. The term Mortgage Planner was first coined by Tim Hester to mark a clear distinction between the new approach to mortgage origination and the existing practices encompassed by mortgage brokering. The terms certified mortgage planning and certified mortgage planner were first used by the NAMP ( National Association of Mortgage Professionals).
The term "certified mortgage planner" is an effort to validate through education and subsequent certification a mortgage originator that has had specific training for the purpose of incorporating the mortgage decision with a Borrowers short and long-term financial objectives. The term "mortgage planner" has been adopted as a generic niche term for mortgage originators who choose to assist borrowers on a more personal level by incorporating the mortgage decision with a borrowers short and long-term financial objectives.
#AIM MORTGAGE PROFESSIONAL#
In the United States certified mortgage planner is a designation for the purpose of establishing a new professional category in the mortgage sector: one that arose as a response to criticisms of the mortgage banking industry. JSTOR ( December 2006) ( Learn how and when to remove this template message).Unsourced material may be challenged and removed.įind sources: "Certified mortgage planner" – news Please help improve this article by adding citations to reliable sources. This article needs additional citations for verification.
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