As a divorce professional, you’ve seen firsthand the challenges that homeowners can face when they are trying to determine what to do with the marital home. Whether they choose to refinance or sell, a Certified Divorce Lending Professional (CDLP®) can help ensure that navigating the world of mortgage financing doesn’t add additional stress to this emotionally charged time. The Perspective of a Certified Divorce Lending Professional.
A CDLP® Has Specialized Training
To become a CDLP®, a mortgage professional must complete a rigorous training program covering topics such as the types of property in a marriage, dividing real estate in a divorce, transferring ownership of real property, and how the mortgage interest deduction is affected by divorce. There is a certification exam required to earn the initial credential, plus four hours of continuing education that is necessary each year to maintain certification.
The CDLP® training provided by the Divorce Lending Association is unmatched in the mortgage industry. While the typical mortgage professional may believe all they need to succeed in the divorce space is a basic understanding of mortgage guidelines, a CDLP® understands the intersection of the other moving parts and is committed to providing a higher level of service to the divorcing homeowner.
Each CDLP® brings their own special skill set to the table. However, you can be confident that these mortgage professionals are well-equipped to help everyone on the divorce team understand the complications that can arise involving income, asset division, and equity as it relates to mortgage financing—and help establish a realistic timeline for clients who are eager to resolve their living arrangements as soon as possible.
Adding a CDLP® to Your Divorce Team
On the professional divorce team, each professional has their own area of expertise. For example, each spouse has their own lawyer, financial and tax professionals help evaluate the long-term effects of the settlement agreement, divorce coaches share co-parenting and mental health strategies, and child specialists focus on avoiding unnecessary disruption to the children’s routines.
A CDLP® focuses on taking a broad look at each divorce case and how family law, financial and tax planning, real property, and mortgage planning may present potential challenges and opportunities related to home equity solutions and mortgage financing opportunities. They can assist those who wish to refinance as well as those who intend to sell their current home and purchase a different property.
A CDLP® Can Work With One or Both Spouses
A CDLP® is a financial neutral who can provide objective information to both spouses if desired. Depending on the couple’s specific circumstances, they may gather necessary documents, compile estimated budgets, analyze data, and run hypothetical scenarios that help determine the most reasonable course of action in regard to the mortgage.
In a marriage, it is common for one spouse to take the lead in managing the couple’s finances. In a divorce, it’s crucial that both parties understand their assets, cash flow, and obligations. A CDLP® can help demystify the mortgage lending process, so each spouse is capable of making a more informed decision regarding their overall mortgage and home equity solutions.
A Proactive Approach Is Always Best
Ideally, you want to get a CDLP® involved in the divorce process as quickly as possible. If you wait until the couple has already started mediation or arbitration, you risk undoing agreements that have taken hours to develop or structuring a settlement that will prevent one party from obtaining a mortgage altogether.
While a CDLP® does not provide tax or legal advice, they are able to take a holistic look at the divorce mortgage planning process and offer guidance on solutions that can help meet the divorcing homeowner’s short-term and long-term financial and investment goals. Adding a CDLP® to the team helps your client minimize taxes and interest expenses while maximizing their post-divorce cash flow.
Locate a CDLP®
If you’re ready to add a CDLP® to your professional divorce team, our locator tool can help you find a mortgage professional in your area. We have CDLP® certified mortgage professionals located throughout the United States.
