Converting a CFD to Traditional Note / Mortgage

[Chris Seveney]

Ok note fans- here is one for you that I am curious to hear the response as I have received conflicting information from two MLO’s who many of us know and/or use:

Converting a CFD originated pre-Dodd Frank to a traditional note and mortgage and giving the borrower the deed to the property.

Do they need to be requalified and go through ability to repay if payment is not increasing?

I have been told yes and no.