The Divorce Lending Association (DLA) has adopted a Code of Ethics and Professional Responsibility ("Code") to establish the minimum standards of professional conduct for those entitled to use the CDLP® certification mark and titles like CDLP® and Certified Divorce Lending Professional. The use of these marks signifies to the public that the CDLP® designee is trustworthy for financial advice in divorce contexts. Adherence to the Code is mandatory for all CDLP® designees, and non-compliance can result in certification revocation.

Quick Links:

  • Rules and Policies
  • Practice Standards
  • Code of Ethics

Rules and Policies

Grounds for Disciplinary Investigation:

  1. Failure to follow the CDLP® Code of Ethics and Practice Standards.
  2. Conviction of state or federal law criminal violations, regardless of client involvement.
  3. Any other circumstances deemed appropriate by the DLA.

Forms of Discipline:

  • Dismissal: If the complaint is found unwarranted, the Ethics Committee chairman will dismiss it, and the matter remains confidential.
  • Private Censure Letter: A letter of censure is placed in the CDLP® designee’s file, remaining confidential.
  • Suspension
  • Revocation
  • Other appropriate disciplinary actions as determined by the DLA.

The DLA will determine disciplinary action on a case-by-case basis at its discretion.

Investigation Process:

  1. All complaints against a CDLP® designee must be submitted in writing to the DLA.
  2. The Ethics Committee chairman will request relevant information from the CDLP® designee within 30 days. Non-compliance may result in disciplinary action.
  3. The chairman evaluates the complaint and makes a disciplinary recommendation.
  4. The CDLP® designee can appeal the decision in writing within 20 days.
  5. The Steering Committee reviews the information and decides on the appropriate action. The decision is final and binding.

Reinstatement After Discipline:

  • Suspension: After the suspension period, a CDLP® designee must file an affidavit within 30 days confirming compliance with the suspension order.
  • Revocation: Permanent, with no opportunity for reinstatement.

Confidentiality of Proceedings:

  • Dismissals and private censures are handled confidentially.
  • The DLA will disclose information as required by law or necessary for regulatory compliance. Suspensions and revocations will be made public at the DLA's discretion.

Practice Standards

The Divorce Lending Professional Practice Standards establish professionalism expectations for Certified Divorce Lending Professionals (CDLP®). These standards guide practitioners involved in divorce mortgage planning services.

Certification Process:

  • Experience: Minimum three years of relevant experience, including residential mortgage origination, financial planning, or mediation. An active NMLS record and appropriate state licensing are required.
  • Education: Complete a comprehensive course of study approved by the DLA.
  • Examination: Pass a five-part educational curriculum and certification exam testing knowledge of mortgage and real property aspects of divorce.
  • Ethics: Adhere to the DLA Code of Ethics and Professional Responsibility. Disclose any investigations or legal proceedings related to professional or business conduct.

Ongoing Certification Requirements:

  • Maintain technical competence and fulfill ethical obligations.
  • Maintain active DLA membership and complete two hours of annual continuing education.
  • Disclose any public, civil, criminal, or disciplinary actions during the past two years as part of the renewal process.

Divorce Lending Professional Process

Service Scope: CDLP® practitioners should use the following process:

Step #1: Establish and Define the Relationship

  • Agree on the scope of services, fee arrangement, and compensation.
  • Disclose any limitations or conflicts of interest.
  • Determine client and practitioner responsibilities.

Step #2: Gather Client Data

  • Obtain sufficient quantitative and qualitative information relevant to the engagement.
  • Communicate any inability to obtain necessary information to the client.

Step #3: Complete Analysis/Assignment

  • Use unbiased judgment and sound economic/mortgage planning principles.

Step #4: Present and Deliver Work Product

  • Complete analyses and reports professionally and competently.

Step #5: Confirm Completion

  • Send written correspondence to clients confirming engagement completion.

Code of Ethics

The Code of Ethics and Professional Responsibility outlines the ethical standards adopted by the DLA and adhered to by every Certified Divorce Lending Professional.

Key Ethical Principles:

  • Integrity: Maintain honesty and avoid practices that dishonor the profession.
  • Competence: Acquire necessary knowledge and skills in divorce planning.
  • Objectivity: Remain intellectually honest and impartial.
  • Fairness: Make recommendations independently of mortgage origination relationships.
  • Confidentiality: Hold client information in strict confidence.
  • Professionalism: Interact with the highest levels of professionalism.
  • Scope: Specialize in mortgage financial issues of divorce.
  • Compliance: Adhere to all relevant laws and report any violations.
  • Unauthorized Practice of Law: Do not misrepresent the DLA certification as a license to practice law.
  • Support: Uphold the profession and the DLA.

Conclusion

A Certified Divorce Lending Professional (CDLP®) is a specialized mortgage professional with training and education to assist individuals through divorce with their mortgage and financial needs. The CDLP® designation signifies a deep understanding of the financial aspects of divorce, particularly in relation to real estate and mortgages. Effective communication and strategic negotiations are crucial for a successful divorce settlement, ensuring both parties' financial stability. Integrating divorce mortgage planning with a CDLP® into the settlement process leads to better outcomes for divorcing couples.

Involving a Certified Divorce Lending Professional (CDLP®) early in the divorce settlement process can set the stage for successful mortgage financing.