Mortgage planner
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A mortgage planner is a mortgage professional who provides a consultation to their client that is in alignment with their long and short term financial goals. The Mortgage Planner can also perform the duties of a loan officer, such as originating a home loan. Mortgage Planners have a philosophy to help their clients properly manage a mortgage, as it is most people's largest debt. Mortgage Planners can also assist in credit optimization, real estate portfolio planning, debt reduction, and for the more sophisticated client a mortgage planner may instruct and educate their clients on the benefits of arbitrage (borrowing at one rate and investing at another rate for profit) with the purpose of increasing safety, liquidity and rate of return.
There are several certification institutes through which Mortgage Planners may acquire designations such as the "Certified Mortgage Planning Specialist Institute" (www.cmpsinstitute.org), Strategic Equity's "Certified Mortgage Advisor" designation, and the "Certified Liability Advisor" designation. These are all private institutions that deliver a curriculum based on multiple advanced topics and instruction into many proven strategies that industry leaders have used in their mortgage planning practices.
Mortgage Planners hold a philosophy that the equity in residential real estate should be viewed as an important component in a homeowner's total portfolio of assets. Alan Greenspan[1], when chairman of the Federal Reserve Board, placed the value of unmortgaged American home equity to be around nine (9) trillion dollars which at the time was approximately 67% of the value of the average primary residence. He further stated: "...the vast majority of homeowners have built up substantial equity in their homes despite large mortgage-market-financed withdrawals of home equity in recent years."[2]
With such a large portion of total wealth concentrated into this area, a qualified Mortgage Planner may provide critical additional value to the homeowner. These specialists are more equipped to aid in the selection of appropriate liability financing designed to enhance the total wealth picture. Often, if a mortgage applicant seeks their loan from a loan officer instead of a mortgage planner they may not receive the same level of full service.
