It is with tremendous excitement and some trepidation that I have made the decision to end my affiliation with the Divorce Lending Association as a CDLP, so you will no longer see the certification in my bios. I will, however, still be providing real estate advice for divorcing couples and I will be retaining my mortgage license. I want to make clear that this move is by no means a reflection on the Divorce Lending Association as it is definitely the premier organization to train divorce lending professionals, which is the root of my decision.
I have always seen The Divorce Housing Pro as a means for divorcing couples and their professionals to get in information, advice and counsel that they need in a way that does not tie the service to the transaction. The Divorce Lending Association understandably prohibits this approach to client service as they are lending professionals and not in the business of advisory services. My model will no longer be based solely in execution of the loan process and more rooted in matching guidance and solutions to the client’s situation and needs as opposed to transactional.
This does not equate to a decrease in the value of the advice and clients engaging with The Divorce Housing Pro will still get the necessary, essential advice to make the right decisions about what to do with their marital real estate. What will change is the nature of the relationship to our clients and how we see optimizing their post divorce housing plans and decisions.
In a traditional model, compensation is based wholly upon the transaction which can, in my opinion, create a conflict. Because a lender is only paid on the loan, their service is structured to that end or they end up working for free. The pre-divorce effort amounts to a lot of hours, more than the loan process actually. Advice and counsel provided during this time is essentially done gratis with hopes of recouping at a later point when the deal happens. If there is no transaction, the lender ended up working for free. This means that divorcing couples who cannot or choose to not refinance or undertake a new property purchase will drop in the prioritization for that lender. After all, the lender needs to feed his or her family which means working on deals with clients who have transactions that will close. Even ones who can or will do a transaction, but have a protracted divorce may see the advice that they get wane as the outlook for a deal becomes less likely or they have devoted too much freed time already.
Decoupling the advice from the transaction means that the client is getting the best advice possible. There is no incentive or motivation for any particular outcome. Additionally, this opens the door for much closer collaboration between you divorce housing pro and other team members helping you with your divorce. With the change that can include the lender of your choice who can take the ball and run with it when and of a transaction makes sense.
This is especially valuable with the greater prevalence of limited scope representation as well as pro se where divorcing couples are quarterbacking their own process. Since the home is exceptionally important and usually the most valuable asset, resolving correctly is important and the advice needs to be truly impartial to either party or solution. Our new structure accomplishes just that.
This is not only for divorcing couples hiring us directly, but we are equipped to provide information directly to attorneys and other professionals who can contract with us directly in support of their clients. This keeps the appropriate person in the drivers seat but with the best housing information possible. Kind of like going from old headlights to new superbright LED headlights. It is worth the upgrade to identify obstacles in your path.
If you would like to better understand The Divorce Housing Pro and our offerings, please schedule a time.