I will admit, I am not an expert on mortgages… Fortunately I *do* know where to find them, which is why I hope to bring you more of these types of interviews with real mortgage professionals who are both great at what they do and committed to making the industry a better place for consumers. To kick off this series, I interviewed James K Barath who tells us all about the designation of Certified Mortgage Planning Specialist, and what questions you should ask when selecting  a lending partner.

First of all, who are you and what do you do?
My name is James K Barath and I am a Certified Mortgage Planner who holds the prestigious designation of a Certified Mortgage Planning Specialist (CMPS®). Less than 5% of the entire industry maintains this designation. Additionally, I am a branch manager for a mortgage company d/b/a Benchmark Mortgage, which is a licensed Texas Mortgage Banker. Benchmark Mortgage was ranked 139 in Entrepreneur Magazine’s HOT 500 for 2007 of fastest growing private companies in America.

As with any licensed loan originator, my primary function is to facilitate a mortgage transaction on behalf of my clients. As a Certified Mortgage Planner, it is my fiduciary duty to educate the consumer on how to best manage their mortgage relative to their overall financial goals. This may encompass collaboration with other professional partners such as a financial planner, a public accountant and/or an estate planner. It is this holistic approach that distinguishes a Certified Mortgage Planner from other loan originators.

Are the headlines about the credit crunch from Wall Street to Capitol Hill to Main Street affecting consumers’ ability to get a mortgage?
To answer this question, we need to first understand the definition of a credit crunch. “A credit crunch (also known as a credit squeeze or credit crisis) is a sudden reduction in the general availability of loans (or credit), or a sudden increase in the cost of obtaining loans from banks,” according to Wikipedia.

Inherently by definition, the swift contraction of credit amongst primary lending institutions has shrunken the available money to lend. Consumers have less access not only to mortgages, but also revolving credit, auto loans and personal loans. The shortage of money is exacerbated by the fact that the “sudden increase in the cost of obtaining loans” has been both real and artificial. Real because the actual costs passed on to consumers is substantially higher now than in the past several years. I also label the “cost” as artificial based on the more stringent lending guidelines implemented by Fannie Mae, Freddie Mac, FHA along with non-agency lenders.

While some are optimistic about the outlook of the housing market, others say it may be another year or so before we actually hit rock bottom. What is your perspective on the future of the industry? How should it affect a home buyer’s decision when it comes to taking out a mortgage?
If you gaze into the future, there will always be a place for the housing industry. The ever changing population will demand it. All things being equal, functional obsolescence will require new homes to be built eventually.

Are we at the bottom? One can never be certain until after all the cards have been played. How do we play our cards when the rules are constantly changing? If you could answer that question, you could make billions in this market.

When speaking with consumers, home ownership has to be a personal decision that makes sense in their short & long-term plan. Low rates are not enough to sway homebuyers with an economy that is strained at every level. Educating homebuyers and homeowners on the proper leverage and financial
management of a mortgage is ultimately the best advice we can offer.

What does every homebuyer/homeowner need to ask during the mortgage process?
I am not referring to the old standby, what are your rates and fees?

The public has been misdirected by so-called professionals for years and it has manifested into an assumption that can be more costly than either the rate or fees. The assumption that I allude to is the fact that a consumer automatically believes the individual who answered the phone to be qualified. Think about it.

When was the last time you qualified your mortgage professional?
The largest financial transaction of your life is far too important to place into the hands of an individual who is not qualified to advise you properly. But how can you tell?

Here are 4 simple questions your lender absolutely must be able to answer correctly!

1. What are mortgage interest rates based on?
2. What is the next Economic Report or event that could cause interest rate movement?
3. When Bernanke and the FOMC “change rates,” what does this mean and what impact does this have on mortgage interest rates?
4. Do you have access to live, real time, mortgage bond quotes?

If they don’t know the answers…RUN…RUN…RUN! Consult with a qualified Certified Mortgage Planning Specialist (CMPS®). CLICK HERE to locate an active, licensed CMPS® designated professional in your area. You can also validate my CMPS® active status.

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Thanks so much James for taking the time to answer these questions! If you’d like to reach James directly, you can find him on Twitter, or through the Contact us page on his site. He’s also got a mortgage blog you can check out.