Disputes removed Issues

[Anonymous]

Hello board, I have a few concerns and issues that just occurred today that are stressing me out. I got a pre approval and my LO told me everything was good to go to look for a home and go into a contract. I got a contract going and everything goes well and smooth. We get a few conditions from my underwriter and I meet my side of the terms. Well one of the terms my LO and her LP were given was to remove 1 dispute account I had on my CR. It couldn't say indispute, well their credit people got to work and today my credit alerts go off and notify me of changes. Equifax drops from a 671 to 615. Trans drops from 641 to 575. Only thing that changed was a comment that said in dispute. I talked to my LP and LO and they told me they haven't heard from their credit person and till than we can't jump over our heads. I'm stressing because my closing date is Friday. I don't know why my scores would drop so far down. The issue is a 5000 dollar collection that mcm is claiming I owe but I have no clue on the mAtter. It is a collection they just bought in feb from bank of America and I never banked with them. They have all my info thou. I see this as a issue going back to UW. This is a Fannie Mae purchase too and I read some of comments about FHA and Fannie Mae. Is this workable still or am I going to lose my investment?

[Booner72]

So you passed underwriting except the disputes - now the disputes are gone as they directed you to do - now your scores are lower because the dispute comments are removed?

It is my understanding that if scores drop between first pull and final pull it does not matter as long as there is no new credit/new accounts/new collections etc.  I've asked about this repeatedly because my AAoA is about to take a nosedive when student loans drop off any minute.

Also I'm assuming you are using FAKO scores because SW wouldn't catch this in my experience on EQ.  Your scores might not be as bad as these alerts are saying they are.

What comments have you read about Fannie and FHA that you are concerned about?

[smackmaster2]

when you dispute an item, the effect is that for most items, that collection no longer hurts your score until they prove that you owe the money and that the collection is valid. Once they validate or the dispute comments are removed, your score goes back to where it was before the dispute.

[Anonymous]

Your score likely dropped because the accounts are currently "in dispute."  I believe accounts that are being disputed are not factored in your score, and that is where they drop came in.  Once the dispute is resolved, your score should return to its original number.  

I don't really understand the $5000 loan issue.  Is this a new item that showed up?  Or is this the account that had the "consumer disputes" comment?

[llecs]

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.

Are you sure MCM was the only TL you asked the CRAs to remove the dispute on? Were there others? Did anything change at all on your reports? Looking at your FICO report, does utilization appear in the pos/neg reasons? Does your math add up per util (very important!)?

Turning to FICO scores...are you sure your lender is pulling Beacon 5.0 which is the same EQ FICO as found on here? And are you sure they are pulling TU98, which is the same TU FICO as found on here?

Are you getting your scores from the same source as your credit alerts?

I'll explain further, but without wasting white space on this page, I'm working 3 theories (Booner hit on one) which coincide with the sets of questions. Answer them and I'll elaborate and throw in a way to get MCM off safely and quickly.

[Anonymous]

To answer you all.

MCM began to claim on my report on Feb/2011. Stating they were collecting for BoA, stating that i ower like 4.5k to them. I dont know anything about the account. Somehow they got all my information(Social,Address,Phone). Nonetheless. Anyhow.... When they first pulled my credit, a company called ONE SOURCE CREDIT did a pull and they told me i had a middle score of 645 or something and i was in good shape. I need to get clear to close from UW, but one of the conditions was to remove the disputes and rerun my credit to make sure they were gone and run me through the system again and thats all. 

I got these alerts yesterday regarding changes. All 3 bureaus removed the comment or dispute, This is what it used to state on experian:

Status: CLOSED

Payment Status: No Status

Balance: -

Comments: Account in dispute-reported by subscriber.

Now it says:

Potentially Negative Closed

Payment Statuseriously past due date / assigned to attorney, collection agency, or credit grantor's internal collection department

Balance: 5094

Comments: - 

Status: CLOSED

Equifax: Reads Negative

Comments: Collection Account
Balance: 5094

TU:

Only changes made were the comments. it no longer shows the: Account information disputed by consumer, meets FCRA requirements as it did before. It also read the balance with them and that stayed the same.

Those are the only changes made on my reports. I'm getting my soft pulls from Equifax.com ; Transunion.com(TRUECREDIT), Freecreditreport.com. I know that TU/FREECREDIT are Vantage/Plus Scores and those arent accurate compared to the hard pulls. But i know everytime they have pulled a hard pull, Equifax always has been accurate as what i have. 

My LO/LP have told me they were waiting for their Credit Departs to do the final pull and that they didnt have it yet and we couldnt jump ahead of ourselves. I noticed this morning this pull was made last night. So they should have answers for me today. They use a company called INTERLINCMORT/ONESOURCECO. I'm worried because i know Fannie Mae requires a final pull and i believe scores must be same as first pull. Not sure if this is true or not.  

[Anonymous]

Booner72:

There is no new credit/new accounts/new collections. Everything remains the same as it  was before from what i can review in my reports from all 3 bureaus. The only thing i can notice is that before there was no balance as it was in dispute for EQ and EXP, now they have a 5092 dollar amount. TU had it all this time. So not sure what happened.

[Booner72]

I don't think that's true that Fannie Mae requires the scores to be the same.  My loan is thru Academy Mortgage and they are under "Fannie Mae".  As I've indicated, ive talked to my LO a thousand times about this.  She says scores are often lower because of inquiries, etc.  They aren't looking at the score (well they are but they are looking at the report to see about what's on it).

Hopefully you find out today what is going on.  This is really stressful and you have my empathy.

[Booner72]

PS:  That was a pretty recent collection 2/2011, and if you made it this far I think you will be okay.  I always thought a person had to have 12 months of clean credit to get a loan.  You must be okay if you made it through automated underwriting and then for the most part, through the human underwriter (aside from the dispute).

[Anonymous]

Booner72:

Thanks, it is very stressful to see the score drop the way it did. MyFico TU score is actually a 598. From what i show. I don't know what will happen and i am so close to closing too. This is the reason i came and asked because i am so stressed about the drop. I still havent heard from my LO or LP. I hope to hear something soon.

Well, hopefully this isnt a issue. Thank you.