Mortgage Loans

[DallasLoanGuy]

http://portal.hud.gov/huddoc/12-10ml.pdf

In order to provide clarification of policies concerning Disputed Accounts and
Collection Accounts through future guidance, FHA is rescinding the new
guidance on the following topics in Mortgagee Letter (ML) 2012-3, which
was to become effective July 1, 2012:
Handling of Disputed Accounts, Public Records FHA Total User
Guide Chapter 2, and
Handbook 4155.1 4.C.2.e, Paying off Collections and Judgments.
All other guidance in ML 2012-3, which became effective April 1, 2012,
remains in effect.

[FairCredBen]

What does this mean? I am in the middle of buying a home...

[courtney091082]

Ok so that means they're cancelling what was to become July 1st, meaning you won't have to have collections paid that are over $1k?

[ShanetheMortgageMan]

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courtney091082 wrote:

Ok so that means they're cancelling what was to become July 1st, meaning you won't have to have collections paid that are over $1k?

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Correct.

[courtney091082]

Awesome!! That should help lots out to get a mortgage sooner 

[Megacab07]

It looks like it also changes the handling of disputed accounts.  What effect does it have on that?

[DallasLoanGuy]

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courtney091082 wrote:

Ok so that means they're cancelling what was to become July 1st, meaning you won't have to have collections paid that are over $1k?

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exactly.

also rolling back the proposed 'disputed accounts' rule.

[scmami]

This is great news, in case USDA falls through for me! Thanks for sharing !

[Itsrx1]

This is great news! I've been keeping a close eye on this, thanks for sharing

[co791]

Keep in mind that every lender has their own set of rules......FHA is only the insurer.  Depending on the lender you still may have to pay down those collections despite the change in FHA policy.