derogatory credit

Fannie Mae – Desktop Underwriter/Desktop Originator Release Notes DU Version 10.3 July 2019 Update – Dated May 21, 2019 – Effective July 20, 2019

Written by: Lloyd Rutherford, Staff Writer DU users this is an important update that will clarify some recent changes that you need to know and one that none of us expected to see! Rule Synopsis: Fannie Mae announces an update to their newest DU Version: DU Version 10.3. The changes announced in this release will [...]

2019-06-07T10:43:05-05:00June 10th, 2019|

USDA – Disputed Accounts: If there are disputed accounts showing up on the credit report, but all accounts are showed as paid and satisfied, what will USDA require?

Answer: Disputed accounts on an applicant’s credit report are not considered in the credit score. Manually underwritten loans. For manually underwritten loans, all disputed accounts with outstanding balances/payments must have a letter of explanation and documentation supporting the basis of the dispute. Those debts that have been excluded from the debt ratios must have evidence [...]

2019-02-21T16:33:04-05:00February 25th, 2019|

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 [...]

2018-08-23T16:16:42-05:00August 22nd, 2018|