How to Access Mortgage Information as a Non-Borrowing Spouse Post-Divorce

Challenges of Gaining Access to Mortgage Information Post-Divorce

If you were awarded the marital home in your divorce but aren't listed on the current mortgage, you might face challenges in obtaining the mortgage information necessary for refinancing. Here’s how to navigate these hurdles effectively.

Understanding Your Role as a Successor in Interest

In many cases, only one spouse is listed on the mortgage of the marital home. The mortgage is a separate legal contract from the divorce decree, and the court cannot modify this agreement. So, what happens if the spouse awarded the home is not on the mortgage and doesn't plan to refinance immediately? They become a "Successor in Interest."

Rights of a Successor in Interest Post-Divorce

Divorcing spouses who are awarded the marital home but are not on the existing mortgage face the challenge of obtaining current mortgage information. Two significant CFPB amendments to RESPA and TILA mortgage servicing rules, effective April 19, 2018, extend protections to successors in interest, including those awarded a home in a divorce. These protections include access to loan modifications, dispute rights, monthly statements, escrow accounts, and more.

New Rules for Successors in Interest

The updated rules expand the definitions under RESPA and TILA to include confirmed successors in interest. This includes transfers due to death, divorce, separation agreements, and transfers to a spouse or children. Once a servicer confirms the successor's identity and ownership interest, these individuals are entitled to the same protections as the original borrower.

Requesting Mortgage Information as a Successor in Interest

The CFPB created a specific "Request for Information" process under RESPA § 1024.36(i) for potential successors. If you submit a written request indicating that you may be a successor in interest and provide sufficient information to identify the loan, the servicer must respond with a list of required documents to confirm your identity and ownership interest. The servicer must acknowledge receipt within five business days and respond substantively within thirty business days.

How a Certified Divorce Lending Professional (CDLP®) Can Help

A Certified Divorce Lending Professional (CDLP®) provides invaluable support during the divorce settlement process. Their comprehensive understanding of family law, tax law, real estate, and mortgage financing distinguishes them from other mortgage professionals. Working with a CDLP® ensures that both spouses can secure new mortgage financing post-divorce.

Benefits of Working with a CDLP®

Expertise: CDLP® professionals bring deep knowledge and experience to the divorce team, ensuring that mortgage solutions are integrated with overall financial goals.
Holistic Approach: Divorce Mortgage Planning involves evaluating mortgage options in the context of financial objectives related to divorce.
Informed Decisions: CDLP® professionals help divorcing homeowners make informed decisions regarding home equity solutions and mortgage financing.

Contact a CDLP® Today

For assistance navigating mortgage financing during and after divorce, contact a CDLP®. Obtain a copy of the "Divorcing Your Mortgage Homeowner Workbook," a guide to credit, real estate, and mortgage financing post-divorce. This workbook will help you organize, prepare, and understand your mortgage financing options, whether refinancing the marital home or purchasing a new one.

About Divorce Mortgage Planning

Divorce Mortgage Planning is a comprehensive approach to evaluating mortgage options within the context of overall financial goals related to divorce. A CDLP® works directly with the divorce team to ensure that mortgage decisions align with long-term financial and investment goals, minimizing taxes and interest expenses while maximizing cash flow.

Conclusion

Involving a Certified Divorce Lending Professional (CDLP®) early in the divorce settlement process can help set the stage for successful mortgage financing in the future. Ensure a smoother transition and better financial outcomes post-divorce by incorporating expert mortgage planning into your divorce settlement.

This is for informational purposes only and not to provide 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.