Reverse Mortgage Originators Navigate Financial Planning Market

Reverse mortgage originators have long sought relationships with financial planners who can help as a referral source for working with potential borrowers.

Yet navigating the financial planning market can come with its share of quirks and inconsistencies, meaning originators are best served in doing some research into financial planners and their business before working to form these partnerships.

First, financial planners come with a lot of different “names.”


“A lot of people consider themselves financial advisors,” said Jud Lyman, marketing manager for Liberty Home Equity Solutions during a presentation during the National Reverse Mortgage Lenders Association this week.

From financial planner to estate planning professional and Certified Planning Professional, there are different labels as well as certified designations to consider. But originators looking to partner with financial planners should vet them first. 

“Everyone should be licensed by one of these two groups: FINRA or the SEC,” Lyman says.

Some designations require education and experience standards, such as the CFP designation requirement of at least three years of experience as well as college coursework in financial planning.

Acknowledging that not all financial planners are equally trained and experienced is one important consideration, Lyman says. Making contact is a second consideration as financial planners are often targeted for potential relationships and partnerships on working with retirees.

Rather than to focus on how the reverse mortgage originator can help the financial planner, it’s best to focus on how both parties can help the client, Lyman says.

By exploring how a reverse mortgage can save $800 in spending per month, for example, a rough calculation can show how a retiree’s assets can extend from lasting 12 years to lasting 30 years.

“You can focus on their clients, helping them do their job better, or giving them more assets to manage for their clients,” Lyman says. 

Written by Elizabeth Ecker

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  • Huh?? This kind of confusion shows how little comes from using an existing core of originators to penetrate the financial planning community. We would be better served if the financial planning community represented themselves in our conferences.

    Why does a CFP have to be licensed by either FINRA or the SEC, if the CFP is strictly a planner unless there is some kind of state law requirement (which some states have)? FINRA and SEC registration is more formality than meaningful designation. (Or do the lifetime careers of Bernie Madoff and ol’ Al Stanford stand for nothing nowadays?)

    What in the world is a CPP (Certified Planning Professional)?

    If this is what our industry understands about the financial planning community, we are years from being able to meet that potential demand. It seems we as an industry are moving backwards.

    What everyone needs to realize is that my neighbor who never finished sixth grade and my doctor are as equally qualified to declare themselves financial planners. Even so called RIAs have no real education requirements; in that regard they are just like CRMPs, although CRMPs have to show some kind of experience and oh yeah, take a few hours on ethics.

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