I was approved for an FHA loan in May 2017 for a new build. I was scheduled to close next Wednesday. My LO called me yesterday and told me underwriting can not issue an approval because my current mortgage company (OCWEN) removed my account from all 3 credit bureaus. I did a loan modification with OCWEN in 2013. I hade a late payment after the modification. According to FHA regulations if a buyer has a modification and the lender is no longer reporting to the credit bureaus, the supplements can not show any lates since the modification. My LO said this would be of no concern if OCWEN was still reporting. I've tried contacting OCWEN several times and each time they tell me they have reported it correctly to the credit bureaus. I've reached out to each credit bureau who still says they do not have that mortgage account listed. Any advice at this point?
Well if your lender can't do a manual underwrite using zero credit scores you may want to check and see if they can get your non-traditional credit lines added to your credit report/profile in order to generate scores. Generally speaking, this is where they take your utility bill(s) and proof of payment and get the last 12 months' added to your profile in order to generate a qualifying score--assuming you've got proof and can accurately source the funds used for payment.
(Unfortunately for many folks who need to resort to this we often simply can't see the money coming from a bank statement each and every single month for the last 12 months which is required, but at least you'll know that this is what you need to do)
The only other thing is to get a credit card or secured card opened two months ago (even though that's not realistic), but if you do this NOW then you'll likely have something reporting in another couple months' once there's sufficient data history being reported.
Good Luck and keep us posted!