FANNIE MAE MORTGAGE APPL & OLD DISPUTES ON 0 BALANCE ACCts - HELP Closing 9/15 Loan delayed

[dab54321]

I find this Board to be invaluable in managing my financial decisions. However, I am concerned regarding my recent mortgage application for a conventional loan (apparently Fannie Mae). In spring 2011, I filed 3 disputes on accounts. Two disputes were on retail accounts and I requested the bureaus recalculate my balances. I was told to dispute the balance to have the recalculation done. Neither account was ever late and I requested the recalculation to show the either zero or almost zero balance. (I was at that time preparing for a prior mortgage. The third was a dispute on a zero balance account with Verizon that was paid in full in 2008.  Verizon reported it as paid after assigned to collection and my dispute was that it was paid in full before collection.

I have attempted to clarify if these disputes for zero balance accounts, each over 3 years since dispute was filed and resolved, require that I have to send letters that I no longer dispute whatever I disputed. One lender insisted that I do so. That lowered my credit scores from 729, 720 and 720 to 722, 702, and 695. The lowered score resulted in the lender now demanding additional payment for the PMI because my mid score is less than 720. 

As a note, I have never had a late payment on any account reported on any Bureau since the Verizon in 2008 which was 60 days late. The lender made other conditions like paying off and closing credit card accts, most with zero balances for months. I saw a further brief drop in scores today on my FICO and alert said balance decreased. I paid off my only existing credit card balance at lender's insistence.  Account was current, never late.

Any information on the "requirement" lender claimed regarding dispute removal is greatly appreciated. Also how I can restore credit quickly from card closures, dispute removals and lowered balances?

Thank you

[DallasLoanGuy]

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@dab54321 wrote:

I find this Board to be invaluable in managing my financial decisions. However, I am concerned regarding my recent mortgage application for a conventional loan (apparently Fannie Mae). In spring 2011, I filed 3 disputes on accounts. Two disputes were on retail accounts and I requested the bureaus recalculate my balances. I was told to dispute the balance to have the recalculation done. Neither account was ever late and I requested the recalculation to show the either zero or almost zero balance. (I was at that time preparing for a prior mortgage. The third was a dispute on a zero balance account with Verizon that was paid in full in 2008.  Verizon reported it as paid after assigned to collection and my dispute was that it was paid in full before collection.

I have attempted to clarify if these disputes for zero balance accounts, each over 3 years since dispute was filed and resolved, require that I have to send letters that I no longer dispute whatever I disputed. One lender insisted that I do so. That lowered my credit scores from 729, 720 and 720 to 722, 702, and 695. The lowered score resulted in the lender now demanding additional payment for the PMI because my mid score is less than 720. 

As a note, I have never had a late payment on any account reported on any Bureau since the Verizon in 2008 which was 60 days late. The lender made other conditions like paying off and closing credit card accts, most with zero balances for months. I saw a further brief drop in scores today on my FICO and alert said balance decreased. I paid off my only existing credit card balance at lender's insistence.  Account was current, never late.

Any information on the "requirement" lender claimed regarding dispute removal is greatly appreciated. Also how I can restore credit quickly from card closures, dispute removals and lowered balances?

Thank you

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disputes need to be removed. we dont know if it is in dispute or there are just comments from old dispute.

NEVER seen somene have to close a credit card for a loan unless they needed to pay it off to qualify. scratching my head

[dab54321]

I think New American Funding is a less than reputable company. I had kept open several credit card accounts with zero balances and no activity except the annual service charge ($10,000) to Capital One for years. It seemed to keep a stable debt to available credit percentage. The mortgage

company insisted I close a total of 7 credit cards. One was my Sears, $15000 available credit. 

I found Fannie Mae regulations, 8/14 that reference accounts with disputes that have liabilities. If the accounts have zero balances and have had zero balance for years, they don't fall into the guideline of a liability. I submitted the generic letter removing the disputes since I was told I had to.  I initiated each dispute so hopefully they will remain off the reports.

Out of curiosity, is there an organization that oversees less than reputable mortgage companies?

Thanks.

Terry

[ShanetheMortgageMan]

http://www.consumerfinance.gov (CFPB) is who accepts complaints regarding mortgage companies (lenders, brokers, etc.).  The CFPB then contacts the mortgage company to make sure they address the complaint, so you'll likely get a response from the lender within a week or two.

If you are appling for Fannie Mae financing, after credit is checked, it is run through automated underwriting (Fannie Mae's is called Desktop Underwriter, or DU for short).  DU will flag any accounts in dispute that need to be removed.  That is most likely where they got the list of accounts in dispute that needed to be removed from dispute.