FHA – Disputed vs. Derogatory – Does FHA exclude Charge Offs and Collections that are outside of 24 months OR just the late payments outside of 24 months?
Answer: This isn’t the first time I’ve had this question, and FHA really needs to change the wording in their guidelines because it is quite confusing! Reference: FHA Manual 4000.1 In the FHA Manual, they refer to accounts that are both DISPUTED and DEROGATORY. I think a better way to word this would be: All Disputed Charge Off Accounts [...]