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New FHA rules and Accounts in Dispute

Regular Contributor

New FHA rules and Accounts in Dispute

With the new FHA rules starting June 1st do we need to worry about getting Account in Dispute remarks removed now?

 

We plan to apply in July and have a few accounts with something like Account Disputed/Account Verified/Customer Disagrees on our reports.

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Message 1 of 19
18 REPLIES
New Contributor

Re: New FHA rules and Accounts in Dispute

Just a technicality, but the new FHA rules regarding collections are actuallyscheduled to go into effect July 1, not June 1. Still, given the fact that you aren't applying until July, you will be affected nonetheless.

 

Before applying for any kind of mortgage, it's best to have all disputes resolved, one way or the other. I haven't heard of a single lender who will make a Yes/No decision with accounts in dispute, as your actual score can vary greatly based on these items being "temporarily" removed from the scoring calculation.

 

Best of luck to you!

Message 2 of 19
Regular Contributor

Re: New FHA rules and Accounts in Dispute

After reading the new rule I dont get it. It says only items in dispute over $1,000 in total will need to be handled.

 

I am reading as if you have items which are showing 0 balance but might have a dispute comment then they dont care.

Penfed Visa 10k | Penfed PLOC 25k | Citi Hhonors 10k | Total Rewards Visa $25k | Alliant Visa $15k | Barclays Arrival + $13k | Barclays AAdvantage $5k | Barclays Apple $2.2k | CapOne QS WMC $26.5k | CapOne QS $5k | CapOne Plat $5k | Discover 8.5k | Allegacy Visa $6k | DCU Visa $7.5k | Best Buy Visa $11k | Lowes Store Card $30k | Walmart Store Card $10k | Amazon Store Card $25k
Message 3 of 19
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New Contributor

Re: New FHA rules and Accounts in Dispute

Yes, I believe that is correct. They are totalling the balances for all collections. If the total is more than $1,000, you have to pay them off, or make on-time payments for at least three months.

Message 4 of 19
Regular Contributor

Re: New FHA rules and Accounts in Dispute

So I am confused...

 

I have 3 accounts which have comments like Account in dispute-reported by subscriber, however every one of these accounts also shows a 0 balance, closed or IIB. 

 

So do I need to get these comments removed before applying?

Penfed Visa 10k | Penfed PLOC 25k | Citi Hhonors 10k | Total Rewards Visa $25k | Alliant Visa $15k | Barclays Arrival + $13k | Barclays AAdvantage $5k | Barclays Apple $2.2k | CapOne QS WMC $26.5k | CapOne QS $5k | CapOne Plat $5k | Discover 8.5k | Allegacy Visa $6k | DCU Visa $7.5k | Best Buy Visa $11k | Lowes Store Card $30k | Walmart Store Card $10k | Amazon Store Card $25k
Message 5 of 19
New Contributor

Re: New FHA rules and Accounts in Dispute

Probably not, but as is always said here, best to ask your lender.

Message 6 of 19
Valued Contributor

Re: New FHA rules and Accounts in Dispute


Klesko wrote:

So I am confused...

 

I have 3 accounts which have comments like Account in dispute-reported by subscriber, however every one of these accounts also shows a 0 balance, closed or IIB. 

 

So do I need to get these comments removed before applying?


I have three collection accounts listed with dispute remarks, but the disputes are closed and the accounts are paid at 0. My LO indicated this would not be an issue..

 

We'll find out in a week Smiley Wink

 

-scott

Starting FICO Score: 10/10: TU 498 | EQ: 502 Current FICO Score(lender pull): 09/14: TU: 784 | EQ: 752 | EX: 784
Collections Removed: Hunter Warfield, CBE Group, Merchants Credit Guide, EOS-CCA, Enhanced Recovery, Portfolio Recovery, UCB, American Collection Company, Medical Business Bureau, Jefferson Capital, Credit Portfolio Associates, FCO, LVNV, Convergent, Armor Systems
Other Negative Entries Removed:Plains Commerce CO, HSBC CO, 2008 Judgment Santander Reposession


Positive Accounts:10/10: 0 | 07/12: 6 | Mortgage Closed 5/12, Macy's AMEX $13900, Citi/Home Depot $8500, Capital One Cash Rewards $3500, BOA $7500 Total Utilization: 3%. AAoA: 2yr, 9mth. INQS: 1 TU, 1 EQ, 3 EX
Message 7 of 19
Valued Contributor

Re: New FHA rules and Accounts in Dispute

Just an FYI, my lender is already using this process.... and i had to sit on the phone for a good 2 hours yesterday getting this taken care of.....

 

I followed Shanes process which can be found here!

 

http://ficoforums.myfico.com/t5/Mortgage-Loans/Best-Way-to-Remove-quot-Account-In-Dispute-quot-for-M...

My credit journey has completed. I am currently sitting at 800+ across the board.

I started my journey here years ago, and thanks to MyFico, it really is possible.
Message 8 of 19
Regular Contributor

Re: New FHA rules and Accounts in Dispute

BadCredBen

 

Where the items you had flagged as in dispute showing a balance?

Penfed Visa 10k | Penfed PLOC 25k | Citi Hhonors 10k | Total Rewards Visa $25k | Alliant Visa $15k | Barclays Arrival + $13k | Barclays AAdvantage $5k | Barclays Apple $2.2k | CapOne QS WMC $26.5k | CapOne QS $5k | CapOne Plat $5k | Discover 8.5k | Allegacy Visa $6k | DCU Visa $7.5k | Best Buy Visa $11k | Lowes Store Card $30k | Walmart Store Card $10k | Amazon Store Card $25k
Message 9 of 19
Valued Contributor

Re: New FHA rules and Accounts in Dispute

nope, none had a balance, and none were actually in dispute, there were simply comments.... all you have to is call the CRA and simply tell them you want all comments removed and to close all disputes. usually it takes 24-48 hours, mine updated in 3 hours Smiley Happy

My credit journey has completed. I am currently sitting at 800+ across the board.

I started my journey here years ago, and thanks to MyFico, it really is possible.
Message 10 of 19