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Disputing accounts on your credit report and applying for a mortgage. Important news!!!

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DallasLoanGuy
Super Contributor

Disputing accounts on your credit report and applying for a mortgage. Important news!!!

Fannie Mae just tweaked their system and updated their policies.  
ACCOUNTS UNDER DISPUTE MUST BE RESOLVED(borrower must get with creditor to resolve) AND NEW CREDIT ORDERED BEFORE UNDERWRITING!!

 

If you are disputing things on your credit.... you are NOT ready to buy a home anyway. If you want to dispute a bunch of stuff that is inaccurate, then go ahead. Just know that you will need all of that resolved before applying for a loan.

If you have been pre-approved for a Fannie Mae backed loan with open disputes, then you are no longer pre-approved.

 

 

 This is not a lender guideline.... but, rather, a Fannie Mae guideline that ALL lenders will have to follow.

 

Retired Lender
Message 1 of 11
10 REPLIES 10
valley_man0505
Established Contributor

Re: Disputing accounts on your credit report and applying for a mortgage. Important news!!!

Ok Dallas--you officially have scared the crap out of me now.  My loan app is in underwriting right now and I am scheduled to close at the end of March.  To be honest, the whole loan process confuses me--how do I know if my pre-approval was for a Fannie Mae backed loan?  Does Fannie Mae back FHA loans?  Do they back ALL FHA loans?  I have no idea if this will affect me or not (I definitely plan to call my LO this morning to find out).

 

Also, what do you mean by "resolved".  Nearly everything on my reports is shown as disputed (and yes, I had a reason to dispute it all).  Many were deleted, but the one's that weren't were updated.  However, the updated ones still show as "under dispute" even though I did not dispute again after the updates.

 

 

ETA:  Also, could you post a link or something to this policy change?  I am sure my LO is going to ask me where I heard this if he has not already seen it.  As much as I love myFico and as knowledgeable as I know Dallas is, I don't feel right telling him that "some guy on an internet forum told me".

Message Edited by valley_man0505 on 02-23-2009 07:40 AM
Message 2 of 11
DallasLoanGuy
Super Contributor

Re: Disputing accounts on your credit report and applying for a mortgage. Important news!!!

Sorry Valley.... I don't mean to scare.... But people need to know this.

Lots of loan officers will get caught with this over the next few weeks..... I just want the people here to be aware in case they are in this situation.

 

How do you know? Ask your loan officer.

 

One of our loan officers had some wierd results from automated underwriting that they didn't understand and called Fannie.

I don't know whether their was an announcement or not.

 

I recently had a loan turned down by AU for disputed accounts.  

Retired Lender
Message 3 of 11
valley_man0505
Established Contributor

Re: Disputing accounts on your credit report and applying for a mortgage. Important news!!!

I am still waiting for my LO to return my call.  Here is a hypothetical situation: I was supposed to hear the final results from underwriting on Tuesday or Wednesday, so the underwriting process could already be completed if I am lucky.  If it was completed before this policy took effect, would I be safe?  Or would this issue come again before closing?

 

I have never really understood exactly what Fannie Mae was or what they did, so this whole thing has me really confused.

Message 4 of 11
rivernh
Contributor

Re: Disputing accounts on your credit report and applying for a mortgage. Important news!!!

ACK!, I have a 5 year old,  FIVE dollar paid charge in dispute (It was my ex husbands responsiblity not mine) AND am in approval process. It's FHA, but I have no idea if its Fannie mae or not.  And my loan officer is on vacation this week *sigh*   Last Friday, she let me know I had preliminary approval based on the appraisal which wan't backyet.

 

I have no idea whether to worry or not.

 

 

Message 5 of 11
DallasLoanGuy
Super Contributor

Re: Disputing accounts on your credit report and applying for a mortgage. Important news!!!

fha is not fannie mae

 

Retired Lender
Message 6 of 11
DallasLoanGuy
Super Contributor

Re: Disputing accounts on your credit report and applying for a mortgage. Important news!!!

it is possible that automated liked the rest of the file enough to ignore it.

but who knows.

 

Retired Lender
Message 7 of 11
valley_man0505
Established Contributor

Re: Disputing accounts on your credit report and applying for a mortgage. Important news!!!

Well, my LO thought I should be okay.  He said he thought the dispute thing has already been in effect for a couple months.  He said that at worst, they may ask for a letter of explanation.  He also said he was pretty sure he would have heard something back from the lender already if something wasn't going to work for some reason and that I should get my decision back from them today.

 

My account is an FHA--Dallas, you said FHA is not Fannie Mae backed.  Now I am really confused because my LO made it sound like my loans would be Fannie Mae backed.  Is there a difference between loans that are Fannie Mae backed and loans that could just potentially be transferred to Fannie Mae as part of a portfolio?  That sounds like the only tie between my loan and Fannie Mae--that the lender could someday transfer it to Fannie Mae.

 

I think I need to finda Mortgages For Dummies book Smiley Mad This process is SO confusing.

Message 8 of 11
happy0510
Established Contributor

Re: Disputing accounts on your credit report and applying for a mortgage. Important news!!!

Dallas,

 

Thanks for the heads up!

 

HappySmiley Happy


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Message 9 of 11
rivernh
Contributor

Re: Disputing accounts on your credit report and applying for a mortgage. Important news!!!

Good. I was worried for a moment.

Got my heart rate going@!

I'm in the waiting game right now...

Message 10 of 11
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