629 Score - after Rapid Rescore... now another issue..

[Anonymous]

We were all ready to take the next step in the loan process as my score came back 629, income great, 20% down (my own money - 106k)... and now another issue. I've been told that there are 8 accounts that have "dispute verbiage". These are accounts that I've been disuputing to try an clean up my credit. All are disputable and valid. I was trying to do myself a favor and get my score higher.. I was able to get some deleted. But now, the UW is telling me I need to get the Dispute Verbiage off my credit. I was able to do so quickly with EX, and next week I will start the other 2. But I'm nervous that this action or activity will drop my score -- I'm already on the edge with a 629. Anyone have experience with this.. am I over reacting with stress? 

[Anonymous]

I'm sorry to say that I think your worries are legitimate. Disputing an item on your credit report means it is no longer figured into your FICO score; if these items in dispute are added back in, and not deleted, your score could drop. That's exactly why the UW wants the dispute flags removed...so they can see your score considering everything on the report. What is the nature of your dispute so we can give advice on how to proceed?

[Walt_K]

You already posted this in your other thread.  Take a look over there.

Disputes affect score, but merely having dispute comments do not.  Take a look at your other thread for links with numbers to call and such.

[Anonymous]

The disputes are collection accounts (6) that were paid off years ago.. (some as far back as 2 years).. the others (1) are old accounts that were all in good standing that but just old.. I was told that if I got those off my file I could gain a few points. And lastly I had 2 accounts BofA and Citi that were not reporing the correct balances (too high) so I disputed those.

The last is a "late pay" that is disputed because I was not late at all.. this was a collection account that I paid in December of 2010 and they reported I late paid in Jan (have a faxed letter to prove it). The UW said that because the accounts are so old.. and were in good standing she didn't think that the score would lower. The only one that was a red flad was the recently reported late pay. 

My broker works with Brichwood that apprently uses a  Rapid Rescore service.. and said that I would have to jump on a con call with this company and simply state that "I am not disputing" and I can get these cleared up in about 3 days. But again, my concern is that they will have to pull credit again, and hopefully these acconts that would no longer be in dispute do not lowere the score. 

[MarineVietVet]

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@Anonymous wrote:
I'm sorry to say that I think your worries are legitimate. Disputing an item on your credit report means it is no longer figured into your FICO score; if these items in dispute are added back in, and not deleted, your score could drop. That's exactly why the UW wants the dispute flags removed...so they can see your score considering everything on the report. What is the nature of your dispute so we can give advice on how to proceed?

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Not all items are removed during a dispute. Unfortunately (or fortunately depending on how you look at it), portions of an OC account under dispute will not be scored by FICO. Among these are the balance, the CL, and the payment history. Other items like AAoA, scoring bucket, mix of credit, acct age, etc. including CAs and PRs, are not removed or impacted by a dispute.

[Anonymous]

Thanks for the detail, Marine. I didn't realize AAoA was still figured in. But in this poster's case, the late pays are currently not counting against the score, correct? What would you advise based on the follow-up detail provided by the OP?

[MarineVietVet]

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@Anonymous wrote:
Thanks for the detail, Marine. I didn't realize AAoA was still figured in. But in this poster's case, the late pays are currently not counting against the score, correct? What would you advise based on the follow-up detail provided by the OP?

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I tread very lightly on this board and don't comment very often because I'd rather remain silent than give incorrect information. So I will let the real mortgage gurus jump into this.

[Student_Loans_Kill]

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@MarineVietVet wrote:

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@Anonymous wrote:
I'm sorry to say that I think your worries are legitimate. Disputing an item on your credit report means it is no longer figured into your FICO score; if these items in dispute are added back in, and not deleted, your score could drop. That's exactly why the UW wants the dispute flags removed...so they can see your score considering everything on the report. What is the nature of your dispute so we can give advice on how to proceed?

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Not all items are removed during a dispute. Unfortunately (or fortunately depending on how you look at it), portions of an OC account under dispute will not be scored by FICO. Among these are the balance, the CL, and the payment history. Other items like AAoA, scoring bucket, mix of credit, acct age, etc. including CAs and PRs, are not removed or impacted by a dispute.

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I disputed 6 items yesterday got a score watch alert and a 664 to 631 score drop