Credit Card Center Advertiser Disclosure†
06-19-2012 06:59 AM
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.
This has always been the case.
If the lender require collections to be paid..... Find another lender.
You can ALWAYS ask up front BEFORE application if that bank requires collections to be paid. <= If they waffle at all on the topic, find another lender and apply with them. ;-)
06-19-2012 12:34 PM
Per FHA previous guidelines...
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.
From there it would be up to the underwriter. To my understand they request that you remove the comment unless it is more than 2 years old.
06-21-2012 06:30 PM
Thank you for your contribution.Can you explain some more about the roll back the proposed dispute accounts rule? We would greatly appreciate it.
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.
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they rescinded the proposed rule.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?
06-22-2012 05:57 AM
Thanks for taking the time to write the detailed explanation.
I'm assuming the "new rule" was causing make deals to fall apart, and for that reason they decided to cancel it
07-06-2012 01:25 PM
I have 2 old car repossessions that are 3-5 years old. I have been current on all bills paid in the past 2 years a long with the car note. EX: 628, EQ;609, and TR: 621. Do you know if you can get a loan with these showing as having a balance?
07-06-2012 02:48 PM
Forums posts are not provided or commissioned by FICO. Forums posts have not been reviewed, approved or otherwise endorsed by FICO. It is not FICO's responsibility to ensure all posts and/or questions are answered.† Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
* For complete information, see the terms and conditions on the credit card issuer’s website. Once you click apply for this card, you will be directed to the issuer’s website where you may review the terms and conditions of the card before applying. While myFICO always strives to present the most accurate information, we show a summary to help you choose a product, not the full legal terms - and before applying you should understand the full terms of products as stated by the issuer itself.
IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more
FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.