One of the most common questions we get is, "What will it cost my client to consult with a Certified Divorce Lending Professional?" The simple answer, it won't cost them anything when a CDLP® is involved during the divorce process and there is a reason for that.
Certified Divorce Lending Professionals (CDLP®) are mortgage professionals who have completed a very comprehensive certification program with ongoing continuing education and development in divorce mortgage planning. Their ability to expand their vision of the normal scope of the traditional mortgage professional is a great differentiator from those without training who have limited tunnel vision of client to application.
Divorce Mortgage Planning is the ability to put into play the desired outcome by pairing the needs and options available while incorporating the necessary details and clarity into an executable settlement agreement to obtain closure and peace of mind successfully.
Working directly with the divorce team, a CDLP® incorporates divorce mortgage planning into the overall process with a unique and solid understanding of the intersection of family law, financial and tax planning, real property, and mortgage planning.
What a CDLP® can do for you that traditional lenders can’t:
- Identify conflicting objectives between the proposed divorce settlement agreement and mortgage guidelines and requirements.
- Identify strategic solutions for creating desired outcomes using legal and tax codes working directly with the professional divorce team.
- Bring value not chaos with an educational approach and background training in divorce mortgage planning to provide a different perspective and a better solution.
The Value of Working with a Certified Divorce Lending Professional
While a typical mortgage professional simply helps you complete paperwork and ensures your application is processed in a timely fashion, a CDLP® brings the financial knowledge and expertise of a solid understanding of the connection between Divorce, Family Law, IRS Tax Rules and mortgage financing strategies as they all relate to real property and divorce.
- A CDLP® is skilled in specific mortgage guidelines as they pertain to divorcing clients.
- A CDLP® is able to identify potential concerns with support structures that may conflict with mortgage financing opportunities.
- A CDLP® is able to help divorcing clients identify mortgage financing opportunities for maintaining the marital home while helping to ensure the ability to achieve future financing for vacating spouse.
- A CDLP® maintains a commitment to remaining educated and up to date in the ever changing industry guidelines and tax rules as they pertain to divorce situations.
- A CDLP® can help demystify the mortgage planning process by answering questions such as:
- How can I keep the house?
- What do I need to do if I want to refinance the house?
- Can I refinance if I am receiving child support and have no income? What about if I’m self-employed or only work part-time?
So, if a CDLP® does all that, why won't it cost my client for consulting with them during the divorce process?
The Federal Trade Commission (FTC), the nation’s consumer protection agency, enforces the Equal Credit Opportunity Act (ECOA), which prohibits credit discrimination on the basis of race, color, religion, national origin, sex, marital status, age, or because you get public assistance.
The law provides protections when you deal with any organizations or people who regularly extend credit, including banks, small loan and finance companies, retail and department stores, credit card companies, and credit unions. Everyone who participates in the decision to grant credit or in setting the terms of that credit, must comply with ECOA.
RESPA Section 8(a) and Regulation X, 12 CFR § 1024. 14(b) prohibit giving or accepting a fee, kickback, or thing of value pursuant to an agreement or understanding (oral or otherwise), for referrals of business incident to or part of a settlement service involving a federally related mortgage loan.
Types of Lending Discrimination:
- “Overt evidence of discrimination,” when a lender blatantly discriminates on a prohibited basis;
- Evidence of “disparate treatment,” when a lender treats applicants differently based on one of the prohibited factors.
- Charging a fee could be considered Disparate Treatment under ECOA as marital status is a protected class.
How does a CDLP® get paid?
A Certified Divorce Lending Professional is a licensed mortgage loan originator and is paid directly by their employing company or broker when they successfully close a loan. It is the goal of the CDLP® to earn the trust of the divorcing client by providing strategic solutions and tactics during the divorce process that will enable them to successfully retain the marital home or be in a stronger position to purchase a new home ~ ultimately working with the CDLP® to complete their mortgage transaction with them.
Trust matters and working with a knowledgable divorce mortgage planner can make all the difference in the end.
How are you implementing divorce mortgage planning into your case management?
Involving a Certified Divorce Lending Professional (CDLP®) early in the divorce settlement process can help the divorcing homeowners set the stage for successful mortgage financing in the future.
This is for informational purposes only and not for the purpose of providing legal or tax advice. You should contact an attorney or tax professional to obtain legal and tax advice. Interest rates and fees are estimates provided for informational purposes only and are subject to market changes. This is not a commitment to lend. Rates change daily – call for current quotations. The information contained in this newsletter has been prepared by, or purchased from, an independent third party and is distributed for consumer education purposes.
Copyright 2023 Divorce Lending Association. No portion of this post may be reproduced without the written consent of the Divorce Lending Association.