Mortgage Based Financial Planning Leads to Development of Multi-Service Mortgage Practice and Ground-Breaking Mortgage Advisory Services

Market Wire, November, 2005

Mortgage Based Financial Planning™ combines the best practices of three distinct areas in financial services into an innovative financial specialty that's provided on a flat-fee or hourly fee-for-service basis. This specialty taught exclusively through the educational programs of the Mortgage Institute For Financial Services Professionals, Inc. (www.mifsp.org), expands the operations of mortgage originators, financial planners and real estate agents into a Multi-Service Mortgage Practice. "Being that housing expenses on average represent the single largest monthly household expense, showing consumers how to effectively manage this one aspect of their finances gives millions of consumers who have never sought the services of a financial planner a common everyday reason to seek the services of a mortgage practitioner knowledgeable about this planning specialty," says Leon Morris, RFC, CLU, ACS, ChFC, CME, RMP®, FFSI, Executive Director of MIFSP.

Mortgage Based Financial Planning(TM) prepares the mortgage practitioner to be the professional consumers look to for reliable expert advice in managing and re-evaluating their mortgage choices and in making home-financing decisions that keep pace with changes in their financial objectives or life circumstances. "How can any current or future homeowner feel confident when making their most important and long-term financial decision when a Google search of 'mortgage loan' results in over 12 million hits? How can a loan agent only trained to submit loans wherever they can get them closed for the biggest commission properly advise their clients? Obviously there is a huge gap. I believe this gap will be filled by well-trained mortgage planners," says Cindy Bartholow, RMP® of All California Mortgage, Inc.

"Unlike traditional financial planning, there's no general or historical disinterest or conflict of interest in relation to the mortgage. Mortgage Based Financial Planning begins and ends with an emphasis on the mortgage. It's offered independent of a mortgage transaction or any other financial product, and practitioners operating in the fiduciary capacity of Mortgagor Financial Representative(TM) are clearly identified in a written agreement that sets out what the consumer can expect from the engagement. This agreement provides full disclosure and consistency in the services consumers can expect when relying on a Residential Mortgage Planner® or Certified Mortgage Evaluator. These characteristics along with the application of uniform standards and a basis for consumers to judge the quality of a plan are important aspects of the way these practitioners do business," says Morris.

"It's more important than ever that consumers are shown how to make apples to apples comparisons and how to assess risk differentials as it relates to their mortgage decisions," says Morris. The Mortgage Portfolio Theory, the underpinning of Mortgage Based Financial Planning, quantifies the risk return relationship of the mortgage and builds upon the belief that mortgagors should be compensated for assuming risk, and that they should be more cognizant of the types of risks they're taking. Mortgage Based Financial Planning also establishes a multi-step documentation process that supports the suitability of a consumer's mortgage decisions.

"How the mortgage is handled impacts many other financial planning specialties including tax planning, retirement planning and investment planning, and many of life's financial goals center on home financing, e.g., how to obtain it, how to manage it, and how to retire it. While developing a comprehensive financial plan may seem like a daunting task for most people, Mortgage Based Financial Planning encourages the consumer to start with the basics."

About MIFSP: MIFSP offers the only educational program in Mortgage Based Financial Planning(TM).

Contact: Leon Morris www.mifsp.org Phone: (770) 852-7489