Tag: Disputed Accounts

USDA – Updates to Chapter 10 and Chapter 11

Written by: David Hail, Staff Writer USDA lenders, this is a massive update so heads up.  Our expert breaks down the “New”, “Clarifications” and “Reminders” announced by the agency. Rule Synopsis: The great news is that the revisions to Chapter 10 “Credit Analysis” and Chapter 11 “Ratio Analysis” USDA Rural Development announced were coming in […]

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Guidelines on Disputed Accounts

Question: My client has multiple disputes on paid and closed accounts.  Do the guidelines require me to have these disputes removed?  MC Disputed Accounts Chart – All Agency Guidance  – NEW MTP™ A Consumer’s Checklist to Verify Information on Their Credit Report Answer: It is always best to run any conforming loan through DU and/or […]

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USDA – Major Revisions to Chapter 10 – Credit Analysis

Written by: David Hail, Staff Writer The revisions to technical handbook HB-1-3555 Chapter 10, Credit Analysis, are significant and require your full attention if you are originating these types of loans. Rule Synopsis: On December 19, 2019 USDA Rural Development announced upcoming revisions to technical handbook HB-1-3555 Chapter 10, Credit Analysis. They provided an advance […]

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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 […]

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Fannie Mae & Freddie Mac – Disputed Accounts – How do Fannie & Freddie handle multiple disputed accounts?

Answer: Freddie only addresses disputed tradelines when you are manually underwriting the loan – which would lead me to conclude that if the loan is accepted through LPA (not a caution), then LPA has accepted the credit the way it is.  Similarly, DU may allow the same outcome (see highlighted text below).  If you are […]

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