golo wrote:
Thank you for your contribution.Can you explain some more about the roll back the proposed dispute accounts rule? We would greatly appreciate it.
old rule:
If the credit report reveals that the borrower is
disputing any credit accounts or public records,
the mortgage application must be referred to a
DE underwriter for review.
proposed rule:
If the Automated Underwriting System using the TOTAL
Mortgage Scorecard rates the mortgage loan application as an
Accept, the mortgage application will no longer be referred to a
DE underwriter for review due to disputed accounts, as long as
these accounts meet both of the following conditions:
The total outstanding balance of all disputed credit
accounts or collections are less than $1,000,and
Disputed credit accounts or collections are aged two
years from date of last activity as indicated on the most
recent credit report.
they rescinded the proposed rule.
not it is back to underwriter discretion.
my internal guidelines say that the disputes have to be 'resolved'
many banks are the same.
best advice? => get all of the disputes resolved before you get your credit pulled. <= this gives us a valid credit score.
also.... the bureaus might leave a 'statement' on the account saying that you dispute the acccount. this doesnt mean that the account is actually in dispute.... it means that you dont agree and are saying so with a statement.
bad news about that: underwriter cannot tell if it is an ongoing dispute or a statement.... so you will have to get the statemeent removed as well.
best practice with regards to disputes: contact each bureau and have them remove ALL DISPUTES and STATEMENTS OF DISPUTES from the reports.
did that make sense?
* While I try to visit the forum often, please feel free to contact me directly with a link to your post if I fail to answer a follow up question.
* Lending across the entire 'Great State of Texas' since 2004
Starting Score: 603 myfico EQ,648 myfico TU april 2012
