What is Mortgage Planning?


Mortgage Planning is the process of helping clients improve their lives by using the right mortgage strategies.

The right strategy for one client may be completely wrong for another client. That's why mortgage planning should be conducted with a certified professional who is trained in the five CMPS skill sets:

Mortgage & Real Estate Taxation - how and why to understand the tax implications of various mortgage strategies, and how to work as a team with CPAs, attorneys and financial advisors

Housing, Financial & Mortgage Markets - why interest rates fluctuate, and how to understand the housing, financial and mortgage markets

Cash Flow Planning - how to reduce debt, improve cash flow and identify mortgage planning opportunities around retirement planning, college funding, elder care, and other life events

Real Estate Investment Planning - how to help real estate investors compare options and evaluate the impact of various mortgage strategies on their rate of return

Ethics and Compliance - how to implement a pro-active approach to ethics and compliance during the pre-disclosure sales process

Why Is Mortgage Planning Important?

The mortgage is inherently a financial product. Therefore, the mortgage strategy used by a homeowner or homebuyer carries financial consequences that impact his/her life. Mortgage Planning with a CMPS-certified professional helps a homeowner or homebuyer answer the following questions:

  • Should I rent or buy a home?
  • How much of a downpayment should I use when purchasing a home?
  • Where should the money come from?
  • What are the alternatives?
  • How much should I budget for my monthly housing expenses?
  • What if I budget less or more?
  • How will my mortgage decision impact my financial ability to help my children pay for college?
  • How will my mortgage decision impact my financial ability to help take care of my elderly parents?
  • How will my mortgage decision impact my financial ability to retire within the budget and timeframe that works for me?
  • How will my mortgage decision impact my monthly cash flow situation?
  • How will my mortgage decision impact my financial ability to save money for the future?
  • How will my mortgage decision impact my financial ability to manage and reduce my debt in a timeframe that works for me?
  • Should I purchase real estate for investment purposes?
  • What mortgage strategy should I use when buying a vacation home or investment property?


How Relevant is CMPS in Today's Regulatory Environment?

Mortgage industry laws and regulations are written by members of Congress and government regulators. Most of these individuals have absolutely no formal training in financial planning concepts. With all due respect, entrusting Congress and the regulators to look out for a consumer's financial well being is a bit like getting financial advice from someone who doesn't even know how to balance a budget!

For example, regulations state that a mortgage lender must be licensed or registered with the Nationwide Mortgage Licensing System (NMLS). The regulators think it's extremely important for mortgage licensees to answer questions like, "What's the penalty for failing to give borrowers a privacy disclosure according to the Gramm-Leach-Bliley Act?"

Compare this with the CMPS certification that is more concerned with things that are more relevant to the consumer... such as whether a mortgage salesperson is taking into account how various mortgage options impact the borrower's life. The CMPS exam has questions like, "Annie is a 35-year old first-time homebuyer who is thinking of taking $10,000 out of her Roth IRA to use as a downpayment on her home. Which statement best describes the financial consequences of doing so?"

Top 10 Reasons Why a Loan Originator Should Get CMPS-Certified

  1. Confidence: The CMPS curriculum gives loan originators the confidence they need to be effective.  Licensing courses train loan originators on how to pass the licensing test.  The CMPS course trains loan originators on how to pass the real-life conversational tests that clients and strategic partners give them every day.
  2. Knowlege & Skills:  The CMPS curriculum equips loan originators with the skills they need to help borrowers:
    1. Compare loan options more effectively
    2. Consider housing and mortgage decisions in the context of their overall financial situation
    3. Make smarter choices when it comes to debt, cash flow and real estate investment
  3. Credentials: The CMPS Institute can be used as a third party to verify the credentials of a mortgage professional. CMPS certification is the public's assurance that an individual has met rigorous, peer-developed and reviewed standards endorsed by a national professional body.
  4. Validation: Employers welcome and respect certification because it signifies that a loan originator is serious about his/her profession. CMPS certification means that you've gone above and beyond minimum licensing requirements and are committed to excellence in the way you conduct business.
  5. Professionalism: Certification is a fundamental standard among major professions in this country. CMPS certification is important for internal professional recognition, external verification, and accountability.
  6. Continuing Education: CMPS certification and membership includes continuing education on all five CMPS-skill sets.  This keeps loan originators updated on mortgage planning trends and strategies.
  7. Weekly Coaching:  CMPS certification is practical to a loan originator's every-day dealings with borrowers, Realtors and financial advisors.  The weekly coaching included with CMPS membership gives loan originators an action plan that can be implemented in 30-minutes per day.
  8. Value to Strategic Partners:  CMPS training and coaching is heavily focused on helping loan originators create value for Realtors, financial advisors and other strategic partners.  Everyone talks about creating value, but CMPS gives loan originators a system and resources to do so.
  9. Differentiation: There are over 500,000 loan originators who are licensed or registered in the US today.  CMPS gives loan originators a way to stand apart and differentiate themselves in the market.
  10. Marketing System:  CMPS certification and membership includes marketing articles, videos, PowerPoints and a listing on the HomeQB public search engine.  This saves loan originators time and helps them to educate borrowers and referral partners on the value of mortgage planning.


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Questions? We'd love to help.