DIVORCE
ISSUE 26, February 2025
REAL ESTATE & MORTGAGE JOURNAL
WWW.DIVORCELENDINGASSOCIATION.COM
Divorce brings complex financial and real
estate challenges, but with the right
knowledge and guidance, homeowners can
make informed decisions that support their
long-term stability.
The Mediation Process and Dispute
Resolution
Understanding the Six Steps from a Divorce Real
Estate and Mortgage Perspective
Clarifying the Garn-St. Germain Act
Protections and Opportunities for Divorcing
Homeowners
Spousal identity theft in divorce is common
and serious.
Protecting Against Spousal Identity Theft in Divorce
with CDLP® Expertise
04
05
13
UNLOCKING PROTECTIONS
FOR DIVORCING
HOMEOWNERS
TABLE OF
PRESIDENT’S LETTER
THE MEDIATION
PROCESS AND DISPUTE
RESOLUTION
08
CONTENTS
PROTECTING AGAINST
SPOUSAL IDENTITY THEFT IN
DIVORCE
TRANSFORM DIVORCE SETTLEMENTS
WITH PRINCIPLED NEGOTIATION AND
REAL ESTATE MEDIATION SPECIALISTS
15
The Value of Working with a Certified Divorce Lending
Professional (CDLP®)
A CDLP® brings the financial knowledge and expertise of a solid
understanding of the connection between Divorce, Family Law,
Financial and Tax Planning, and mortgage planning strategies
related to real property and divorce.
A CDLP® is trained to recognize potential legal and tax
implications of mortgage planning in divorce situations.
A CDLP® is skilled in specific mortgage guidelines as they pertain
to divorcing homeowners.
A CDLP® can identify concerns with support structures that may
conflict with mortgage planning opportunities.
A CDLP® works directly with the professional divorce team to help
implement a strategic divorce settlement agreement, ensuring the
best opportunities to secure mortgage financing after the decree.
A CDLP® can recommend financing strategies that help
divorcing clients identify mortgage planning opportunities for
maintaining the current marital home while helping to ensure the
ability to achieve future financing for the vacating spouse.
A CDLP® does not give legal or tax advice.
Divorce Real Estate &
Mortgage Journal
Published by:
www.DivorceLendingAssociation.com
This 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.
Copyright by
Divorce Lending Association, LLC
All rights reserved. No part of this
publication may be reproduced or
transmitted in any form or by any means,
electronic or mechanical, including
photocopying, recording, or by any
information storage or retrieval system
without the written permission from the
copyright holder.
The DLA is a national organization dedicated to bridging the gap
between the legal, financial, and emotional aspects of divorce and
the real estate and mortgage process, ensuring that divorcing
individuals have the knowledge, resources, and support they need to
secure their financial well-being and make confident decisions about
their housing needs.
What is the Divorce
Lending Association?
03 DIVORCE REAL ESTATE & MORTGAGE JOURNAL
LETTER
PRESIDENT’S
Dear Colleagues,
Divorce is one of the most significant transitions a person can experience, and with it comes a host
of complex financial and real estate challenges. For divorcing homeowners, navigating these
complexities can feel overwhelming. The decisions made during this time can have lasting impacts
on financial stability, homeownership opportunities, and overall well-being.
However, with the right knowledge and guidance, divorcing homeowners can make informed
decisions that protect their financial future. Understanding mortgage planning, real estate
ownership structures, and equity distribution are crucial in ensuring a fair and sustainable outcome.
Unfortunately, many homeowners face these decisions without the expertise needed to fully evaluate
their options.
As professionals in the divorce space, we have a unique opportunity—and responsibility—to
provide strategic solutions tailored to the needs of divorcing clients. Whether it’s structuring an
equity buyout, determining loan qualification post-divorce, or ensuring mortgage sustainability, our
role extends far beyond traditional financing. By bridging the gap between real estate, mortgage
lending, and divorce financial planning, we empower our clients to move forward with confidence
and security.
At the Divorce Lending Association, we are committed to equipping professionals with the tools
and education necessary to navigate these complex scenarios. Our mission is to provide
comprehensive resources, training, and support so that we can collectively redefine the role of
divorce mortgage planning.
Together, we can make a meaningful impact—ensuring that divorcing homeowners receive the
guidance they need to achieve financial clarity and long-term stability.
PRESIDENT & FOUNDER
04 DIVORCE REAL ESTATE & MORTGAGE JOURNAL
Divorcing homeowners face a variety of challenges when dividing real property, particularly
when one spouse wishes to retain the marital home. Understanding the legal protections offered
under the Garn-St.
Germain Depository Institutions Act of 1982, the concept of a Legal Simple Transfer
Assumption, and the role of becoming a successor in interest is crucial in these situations. These
provisions, combined with recent amendments by the Consumer Financial Protection Bureau
(CFPB), provide important safeguards and rights to divorcing spouses who need to assume or
manage existing mortgages. A Certified Divorce Lending Professional (CDLP®) can guide
divorcing homeowners through these often complex processes, helping them make informed
decisions about mortgage obligations and access to information. This article will clarify the key
protections and benefits under the Garn-St. Germain Act, the role of a successor in interest, and
how a CDLP® can assist.
Understanding the Garn-St. Germain Act and the Simple Transfer Assumption
The Garn-St. Germain Act protects homeowners from a lender's ability to enforce a due-on-sale
clause in certain situations. Normally, a due-on-sale clause allows a lender to demand full
repayment of a mortgage when ownership of the property changes. However, under Section
341(d) of the Act, specific transfers of ownership are exempt from triggering this clause,
including when a property is transferred between spouses or as part of a divorce settlement.
This means that if one spouse is awarded the marital home in a divorce, they can assume
ownership without the risk of the lender demanding immediate repayment of the mortgage.
This process is called a Legal Simple Transfer Assumption. However, it's important to note that
this type of assumption does not release or change the legal obligation of the original
borrower(s). The original parties on the mortgage remain liable unless a formal qualifying
assumption or refinance is completed.
UNLOCKING PROTECTIONS FOR
DIVORCING HOMEOWNERS
HOW THE GARN-ST. GERMAIN ACT AND SUCCESSOR RIGHTS
SAFEGUARD YOUR MORTGAGE
WRITTEN BY JODY BRUNS, PRESIDENT DIVORCE LENDING ASSOCIATION
05 DIVORCE REAL ESTATE & MORTGAGE JOURNAL
In addition to the ownership transfer protections under the Garn-St.
Germain Act, the CFPB’s amendments to the Real Estate Settlement
Procedures
Act (RESPA) have strengthened the rights of those who become successors
in interest. A successor in interest is someone who gains ownership of a
property through a divorce, death, or other qualifying transfer.
Becoming a recognized successor in interest is crucial for divorcing spouses
who need to manage an existing mortgage. Once recognized by the lender, a
successor in interest gains access to key mortgage information, including:
Loan balance and payment history
Current interest rates and terms
Options for payment modification or assumption
This access is essential for understanding the financial obligations tied to the
property and making informed decisions about the future of the home.
Without this status, a spouse who has assumed ownership may struggle to
obtain mortgage statements or negotiate with the lender.
06
DIVORCE REAL ESTATE & MORTGAGE JOURNAL
BECOMING A SUCCESSOR IN INTEREST AND MORTGAGE
ACCESS TO INFORMATION
How the CFPB Amendment Helps Divorcing Homeowners
Prior to the CFPB's changes, successors in interest often faced
significant obstacles when trying to access mortgage information.
Lenders were not always required to recognize these individuals or share loan
details, creating frustration and delays.
The CFPB amendments now require servicers to verify and formally recognize successors in
interest, ensuring they can:
Receive mortgage account information
Discuss potental loan modifications
Address payment and servicing concerns
Loan balance and payment history
Current interest rates and terms
Options for payment modification or
assumption
"Divorce
may divide a
home, but it
doesn’t have
to break
your future.
Make
informed
decisions
today for a
stronger
tomorrow."
A Certified Divorce Lending Professional plays a critical role in guiding divorcing homeowners
through complex real estate and mortgage issues. Their expertise helps ensure that both parties
understand their rights, obligations, and opportunities. Specifically, a CDLP® can:
Explain Legal Protections: Clarify the provisions of the Garn-St. Germain Act and how
they apply to ownership transfers.
Assist with Successor in Interest Recognition: Help homeowners submit the proper
documentation to lenders to gain access to mortgage information.
Explore Mortgage Solutions: Identify options for refinancing, equity buyouts, or loan
modifications based on underwriting guidelines.
Reduce Financial Risk: Provide strategies to prevent ongoing liability for both parties,
ensuring that financial responsibilities are clearly defined and manageable.
How a CDLP® Supports Divorcing Homeowners
"A house is just bricks and beams, but your
future is built on the choices you make today.
Navigate your divorce with strategy, not
emotion."
How The CFPB Amendment Helps Divorcing Homeowners
Prior to the CFPB's changes, successors in interest often faced significant obstacles when trying
to access mortgage information.
Lenders were not always required to recognize these individuals or share loan details, creating
frustration and delays.
The CFPB amendments now require servicers to verify and formally recognize successors in
interest, ensuring they can:
Receive mortgage account information
Discuss potential loan modifications
Address payment and servicing concerns
By ensuring access to mortgage details, the CFPB has empowered divorcing homeowners to
take greater control over their financial stability. A CDLP® can help homeowners navigate the
process of becoming a successor in interest, ensuring all necessary documentation—such as
divorce decrees and property transfer agreements—is submitted correctly to the lender.
07 DIVORCE REAL ESTATE & MORTGAGE JOURNAL
A Certified Divorce Lending Professional plays a critical role in guiding divorcing homeowners
through complex real estate and mortgage issues. Their expertise helps ensure that both parties
understand their rights, obligations, and opportunities. Specifically, a CDLP® can:
Explain Legal Protections: Clarify the provisions of the Garn-St. Germain Act and how
they apply to ownership transfers.
Assist with Successor in Interest Recognition: Help homeowners submit the proper
documentation to lenders to gain access to mortgage information.
Explore Mortgage Solutions: Identify options for refinancing, equity buyouts, or loan
modifications based on underwriting guidelines.
Reduce Financial Risk: Provide strategies to prevent ongoing liability for both parties,
ensuring that financial responsibilities are clearly defined and manageable.
08 DIVORCE REAL ESTATE & MORTGAGE JOURNAL
Many divorcing homeowners prefer a Legal Simple Transfer Assumption because it allows for a
smoother transition of ownership without the need to refinance the mortgage. However, this
option has limitations, including the fact that the original borrower(s) remain legally liable for
the debt. In contrast, a refinance or formal qualifying assumption can remove one party from
the mortgage, fully transferring financial responsibility to the remaining spouse. While
refinancing offers this benefit, it may also come with challenges such as:
Meeting current income and credit requirements
Higher interest rates due to market changes
Additional closing costs
Benefits of a Legal Simple Transfer Assumption vs. Refinance
How a CDLP® Supports Divorcing Homeowners
Learn the six key steps of the divorce mediation process, focusing on real estate and mortgage
solutions. Discover how Certified Divorce Lending Professionals (CDLPs) and Real Estate
Mediation Specialists (REM-S) support fair and informed property division, ensuring financial
stability post-divorce.
Divorce often involves highly emotional and complex decisions about real estate and financial
assets. For many couples, the marital home is the most significant asset, both financially and
emotionally. Mediation offers a collaborative and structured process to help divorcing spouses
resolve these issues without the stress, cost, and delays of litigation. When Certified Divorce
Lending Professionals (CDLPs) and Real Estate Mediation Specialists (REM-S) are involved,
they bring expertise to ensure both parties make informed decisions about property division and
financing.
Here are the six key steps in the mediation process, explained through real-world scenarios and
strategies related to divorce real estate and mortgage planning.
The Mediation Process and
Dispute Resolution
Understanding the Six Steps from a Divorce Real Estate and Mortgage Perspective
Finding Common Ground: Navigating Divorce Real Estate and Mortgage Decisions
Through Mediation
"Divorce isn’t just about dividing assets; it’s about rebuilding your life.
Your home may be at the center of difficult decisions, but remember,
it’s not just a property—it’s a foundation for your future. Approach
each step with clarity, strategy, and a long-term vision. Whether you
choose to stay, sell, or restructure, make decisions that support your
financial stability and emotional well-being. A house can be replaced,
but your peace of mind and security are invaluable. Focus on what
truly matters and build a future that feels like home again."
~ Jody Bruns
09 DIVORCE REAL ESTATE & MORTGAGE JOURNAL
1. Planning
Before mediation begins, the mediator helps all parties agree on logistics, including when and
where to meet and who should participate. In divorces involving real estate, key participants
might include the divorcing spouses, their attorneys, and experts such as a CDLP® or REM-S.
Consider this scenario:
A couple owns a marital home valued at $600,000 with $200,000 in equity. One spouse wants to
keep the home for stability and continuity for their children. During the planning phase, the
CDLP® gathers necessary documents, including mortgage statements, property appraisals, and
income verification, to prepare for discussions on refinancing options and equity division.
The planning phase ensures that all parties are equipped with the data needed to facilitate
productive negotiations.
2. Mediator’s Introduction
At the start of the mediation session, the mediator introduces the participants, explains the
process, and sets ground rules. This phase is critical for establishing trust and cooperation. In
divorce real estate mediation, the mediator might outline the specific goals for property
division, such as determining who will keep the home, how the mortgage will be managed, or
whether the property should be sold. A REM-S professional may explain their role in assisting
with property valuations, negotiations, and creative settlement options. The introduction phase
helps frame the process with clear objectives and promotes open communication.
3. Opening Remarks
Each spouse presents their perspective on the dispute without interruption. This is often a
highly emotional moment, especially when real estate is involved .For example, one spouse
might express concerns about losing the marital home, while the other may worry about being
financially overburdened by future mortgage obligations. A CDLP® or REM-S can offer
impartial guidance, reminding both parties of the practical implications of their options, such
as: The financial requirements for refinancing the home. The tax consequences of selling versus
retaining the property. Realistic timelines for completing transactions. These insights help both
parties separate emotional concerns from financial realities, allowing for more informed
discussions.
10 DIVORCE REAL ESTATE & MORTGAGE JOURNAL