For more information, please contact me at (512) 261-1542 or steve@LoneStarLending.com.
By G. Steven Bray
It’s all too common that I review a borrower’s credit report and find an account labeled “in dispute.” Sometimes the borrower knows about it. Too often the dispute is old news the borrower no longer remembers. The borrower may have placed the dispute herself, or it may have arisen out an inquiry the borrower made to the creditor. Regardless of the source, disputed accounts can be a pain because lenders often require the borrower to un-dispute the account before she can close a mortgage. This can take significant time on the phone with the credit bureaus and/or creditors.
But Fannie Mae is easing this restriction just a bit. Starting this month, the borrower will only have to address accounts that have a delinquency (such as a late payment or collection) within the last two years. It will ignore all other disputed accounts. In addition, it will ignore all disputed medical accounts regardless of the age of any delinquency, but note that the credit bureau must have coded the account as a medical debt. An incorrectly coded medical collection still may cause you fits.
Sorry, the comment form is closed at this time.