Applying for mortgage - dispute remarks

[dccordell]

Sorry for another dispute remarks post, but I just need some clarity and to feel reassured if warranted.

Over 6 months ago, I disputed a couple accounts on my credit, and both now state: Account information disputed by consumer, meets FCRA requirements mortgage loan.

From what I am reading is that this means the dispute is no longer active and the account has been verified as accurate, and the remark is not affecting the credit score in any way. Is this true?

Will a mortgage lender have any issues with these remarks? Would it be advantageous for me to try to call the CRA and get them to remove these remarks? My mortgage score is just over 760, so in the best range, so I don't want to do anything to rock the boat this point.

[StartingOver10]

Remove the dispute remarks before you apply. Otherwise you will have to have them removed during the mortgage approval process and it could delay your closing.

[dccordell]

Thanks, SO. I've found DallasLoanGuy's blog about how to deal with them and will get right on that Monday morning. 

Since the disputes aren't active any more, they shouldn't be shielding any negative account info from my credit score, right? So if I get the dispute remarks removed, that shouldn't have any effect on my credit score, right?

[Anonymous]

I'm no expert, but as I understand it, the dispute remark should be removed by the CRA when the dispute is resolved. Now, in an ideal world the lender would see that remark and understand that the dispute is no longer active and is not affecting your credit score. But some lenders are sensitive to *any* dispute remark, active or closed, and want to see them gone. Lenders are not stupid (usually) and they know the dispute game and that people use the dispute system in an attempt to artifically elevate their scores before a loan app; it makes lenders skittish to see the word "dispute" no matter the context.  If that is what is happening in your case DO NOT DISPUTE the dispute remark; that just compounds the situation.

If your lender really, really wants the remarks gone a friendly call to the CRA might help. Emphatically explain that the dispute is NOT ACTIVE and you are NOT initiating a dispute about the issue; you simply want the remark removed from a previously resolved dispute on the tradeline. Some reps will just blow you off, but one of the beauties of the CRAs is that every time you call you get a different rep and a different answer. That's usually a bad thing, but in cases like this one of the answers may be the one you want.

To answer your direct question "Account information disputed by consumer, meets FCRA requirements" - yes, this means the dispute is closed/resolved, the info has been verified as accurate, and the dispute is no longer affecting your credit score.

Marlena.

[ezdriver]

Remove them, whether active or not, if you have any plans to apply for a mortgage. I had to remove them on tradelines that were discharged in my ch7 bankruptcy.

[Anonymous]

Active disputes need to be removed. Verified disputes that are closed but reporting as previously disputed do not need to be touch. Check with your LO for verification but I'm in the process right now and that's what I was told.

[StartingOver10]

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@Anonymous wrote:
Active disputes need to be removed. Verified disputes that are closed but reporting as previously disputed do not need to be touch. Check with your LO for verification but I'm in the process right now and that's what I was told.

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^^^This is lender specific. You are much better off removing prior to applying but by all means ask your LO first.

[dccordell]

Thanks for the good answers everybody! I will hopefully pick a lender tomorrow and will definitely ask them about how they handle dispute remarks.

Speaking of shopping around, is the best way to just apply at several lenders and compare the GFE's? I have applied at a regional bank, online at two credit unions, and at two of the lenders from Zillow. Honestly, one of the ones from Zillow is looking the best so far, but when business opens tomorrow, hopefully I'll be in touch with several more options.

[Anonymous]

I had the same issue when I applied for my mortgage, I had to have all the remarks removed. I called the CAs directly and had them removed within a week, you may need to send in a fax stating that you want all remarks removed. Since mine were not active disputes my score wasn't affected. Make sure to have your credit report when you call because they will ask you for account numbers. Good luck and let me know if you have any questions.

[dccordell]

Ok, I took everybody's advice and called all three CRA's to get the remarks deleted. It was mostly pain-free, surprisinly easy actually. I followed DallasLoanGuy's blog instructions to do it.

One thing I'll note: When calling Experian, she told me they don't have a "Executive Customer Service Team", but she did call it something else, some 5-letter acronym that I can't remember. I told her what I was trying to do and she knew where to transfer me.

Thanks all!