Certified Mortgage Planner - Origins of The Term

Origins of The Term

The terms certified mortgage planning and certified mortgage planner were first used by the NAMP (National Association of Mortgage Professionals). The term was coined to mark a clear distinction between the new approach to mortgage origination and the existing practices encompassed by mortgage brokering.

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.

Proponents of mortgage planning, such as NAMP, argue that mortgage brokers have no fiduciary obligation to the consumer and are essentially independent contractors. This is in contrast to other related occupations, such as real estate agents, where agency is more clearly defined.

While mortgage brokering license requirements do exist, they are maintained on a state level, and enforcement is often difficult. This factor, in conjunction with the rise in unconventional mortgage products between 1999 to 2006, has led to some brokers taking advantage of unsuspecting consumers.

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. While superficially simple, mortgages are very complex financial products that are difficult for some lay consumers to understand. 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.