Would we default on our home modification loan if we rented the house out?

Here is the long story short. My wife and I are divorcing. The house, which she owned before we met, has always been under her name and we never changed that. She intends to move back to her family and I am staying in the house with my kids and intend to make the monthly mortgage payment. However, we got some news from our insurance agent that concerns us. he said that since I am not on the title I would be considered a renter. I am ok with that. BUT…they would also need to let Bank of America know that the house went from a home owners policy to a rental insurance policy. Our biggest concern is that my wife went through the home loan modification process last year and got our monthly mortgage payment reduced. If we go to them to let them know what is happening is it possible they might say she is defaulting on the loan by using it as a rental property. Clearly I am going to be a “renter” by name but I suspect BoA really won’t care as long as the mortgage and insurance is paid. So my question is…how likely will it be that BoA has an issue once they receive notice from our insurance company about the change into a rental property insurance policy?

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