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.
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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."