Financial Planning Given Failing Grade in Patent Filing That Says Mortgage Originators & Real Estate Agents Could Have Wider Impact
Atlanta, Georgia --
Oct 11, 2005 --
For Immediate Release
A patent for the Mortgage Prepay Equivalent Yield (MPEY), a calculation that can drastically change the approach to financial planning and investment planning, was filed today by Leon Morris, RFC, CLU, ACS, ChFC, CME, RMP, FFSI, Executive Director of the Mortgage Institute for Financial Services Professionals (www.mifsp.org). By removing all subjectivity and guesswork from the decision of whether or not to prepay your mortgage, the MPEY changes how consumers save and invest their money. “The Mortgage Prepay Equivalent Yield is unique for each individual; anyone who has a mortgage can avoid unwittingly and unnecessarily putting hard earned dollars at risk, whether it’s one dollar or one million dollars,” says Mr. Morris. He believes that the MPEY should be used as a standard of suitability in financial planning and in recommending or selling financial products.
“I’m concerned that financial planners aren’t more aware of the impacts of their recommendations. The MPEY solves that problem. There are financial planners with extensive marketing programs promoting the idea of consumers borrowing home equity to purchase financial products, which not only increases the mountain of mortgage debt, but also puts the homeowner at greater risk. Some of these marketing programs even appear to have the support of the Financial Planning Association,” says Morris. “Americans have trillions of dollars in home equity, if this money is put at risk, it could have disastrous results.”
At present only MIFSP is licensed to teach this methodology although that’s expected to soon change. “Even though a mortgage is the largest expenditure for most people, financial planning programs don’t adequately cover mortgage planning,” says Morris.
He believes there are many indications that the financial planning industry shouldn’t be left to regulate itself. “It’s apparent that there’s a need for governmental regulation of the financial planning industry. Consumers are urged to seek the services of financial planners, but there’s no consistency in what the consumer gets or in what they should even expect to get.Life may be like a box of chocolates, but financial planning shouldn’t be,” says Morris. “There’s a need for action, prevention and intervention. None of us can afford to wait to see how this one turns out.” MIFSP is stepping up its efforts to bring this matter before the SEC, NASD, Federal Trade Commission, and Congress.
The MPEY is taught in all MIFSP designation programs, which are also offered to mortgage originators and real estate agents. “Consumers need to be able to rely on professionals for knowledgeable, ethical, objective advice,” says Morris. “It’s difficult for consumers to know who to trust and they need as many chances as possible of coming in contact with the best advisors. Unfortunately, looking for financial planning credentials isn’t always enough.”
About MIFSP:MIFSP offers the only educational program in Mortgage Based Financial PlanningTM.
