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Emerald
Cherry Bomb


Joined: 12 Aug 2009
Posts: 179
Location: California

Re: Fannie Mae DO and Disputed accounts on credit report
PostPosted: Sat Feb 04, 2012 5:42 pm Reply with quoteBack to top

Snets wrote:
maybe but what I'm looking for is where Fannie outlines this stuff so I can use it - I have found plenty on FHA but not on conventional.


This is what Freedom is hanging their hat on and yes, since 2009 it's almost impossible to fund something with a Dispute on the Credit Report. There was also a Fannie Mae letter which went out around this date stating the change in policy. I have been successful in having the clients contact the trade line and negotiating an agreement. Once the letter is received by the buyer you/they can forward this to the credit agencies and get a "resolved" place on the account or sometimes the dispute is removed completely since it is resolved. FPF/Stearns funds these once the issue is resolved.
Hope this helps some.

http://www.privacytimes.com/fannie-mae.html

Because Fannie did not respond by our deadline, Privacy Times reported last issue that it "appeared" that the mortgage giant had begun rejecting applicants whose credit reports showed the "disputed by consumer" notation.

After our story broke, and after Harney inquired about the practice, Fannie Mae Spokeswoman Amy Bonitatibus conceded that its key program, "Desktop Underwriter," had begun scanning credit reports for the term "dispute." But she said Fannie itself wasn't rejecting applications outright. Instead, it was kicking applications back to lenders and requiring them to determine if consumers' disputes were valid.
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Snets
Nitroglycerin


Joined: 12 Nov 2008
Posts: 875
Location: Palm Beach County

Re: Fannie Mae DO and Disputed accounts on credit report
PostPosted: Sat Feb 04, 2012 5:47 pm Reply with quoteBack to top

Emerald - my tradelines do say resolved - they say that's not good enough - it has to have all mention of dispute removed - I'm trying to find something in the Fannie Mae updates that says that if the conditions says "resolved" it's ok
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Snets
Nitroglycerin


Joined: 12 Nov 2008
Posts: 875
Location: Palm Beach County

Re: Fannie Mae DO and Disputed accounts on credit report
PostPosted: Sat Feb 04, 2012 5:51 pm Reply with quoteBack to top

I should add that I got an approve/eligible - they say if the word "dispute" appears - it must be a manual underwrite - even if it says "resolved dispute" and they don't do manual underwrties. They say this is a Fannie thing. It has to be completely removed. I pointed out that that would be the same thing as a collection that is paid - just becuase it's paid doesn't mean the verbiage will be delted from the credit report. The tradelines say they are required to keep it on there because of the FACT Act and because the line says resolved - it should be fine but not according to Freedom.
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Emerald
Cherry Bomb


Joined: 12 Aug 2009
Posts: 179
Location: California

Re: Fannie Mae DO and Disputed accounts on credit report
PostPosted: Sat Feb 04, 2012 5:58 pm Reply with quoteBack to top

Snets wrote:
I should add that I got an approve/eligible - they say if the word "dispute" appears - it must be a manual underwrite - even if it says "resolved dispute" and they don't do manual underwrties. They say this is a Fannie thing. It has to be completely removed. I pointed out that that would be the same thing as a collection that is paid - just becuase it's paid doesn't mean the verbiage will be delted from the credit report. The tradelines say they are required to keep it on there because of the FACT Act and because the line says resolved - it should be fine but not according to Freedom.


On the bottom of the article I posted it shows the Fannie Mae letter which stats if it's cleared then it's good. You might locate that letter and send to your underwriter. Otherwise I agree you may need to take it somewhere else if Freedom is not going to follow Fannie Guidelines.
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Snets
Nitroglycerin


Joined: 12 Nov 2008
Posts: 875
Location: Palm Beach County

Re: Fannie Mae DO and Disputed accounts on credit report
PostPosted: Sat Feb 04, 2012 6:14 pm Reply with quoteBack to top

you"re right - thank you very much - hopefully it will set them straight
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Emerald
Cherry Bomb


Joined: 12 Aug 2009
Posts: 179
Location: California

Re: Fannie Mae DO and Disputed accounts on credit report
PostPosted: Sat Feb 04, 2012 6:24 pm Reply with quoteBack to top

Snets wrote:
you"re right - thank you very much - hopefully it will set them straight


Your welcome. Good luck. It's hard enough getting loans funded without adding problems.
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Snets
Nitroglycerin


Joined: 12 Nov 2008
Posts: 875
Location: Palm Beach County

Re: Fannie Mae DO and Disputed accounts on credit report
PostPosted: Sat Feb 04, 2012 6:52 pm Reply with quoteBack to top

Well I just received a very informative email that basically says this - if the word dispute is on a credit report - then the contribution to the credit score from that particular account is in doubt and therefore the total credit scoring can no longer be relied upon - therefore if there is a zero balance, whether it says resolved or not - this will trigger a manual underwrite (which my conduit doesn't do) and kill the file. I want to point out that this conduit - Freedom - is a good source and doesn't look for ways to kill deals.
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Emerald
Cherry Bomb


Joined: 12 Aug 2009
Posts: 179
Location: California

Re: Fannie Mae DO and Disputed accounts on credit report
PostPosted: Sat Feb 04, 2012 7:05 pm Reply with quoteBack to top

Snets wrote:
Well I just received a very informative email that basically says this - if the word dispute is on a credit report - then the contribution to the credit score from that particular account is in doubt and therefore the total credit scoring can no longer be relied upon - therefore if there is a zero balance, whether it says resolved or not - this will trigger a manual underwrite (which my conduit doesn't do) and kill the file. I want to point out that this conduit - Freedom - is a good source and doesn't look for ways to kill deals.


That's what I was saying earlier. If the matter was truly resolved or zero balance then the dispute is usually removed by the credit bureaus once the letter from the lender has been sent. Just have the borrower ask the tradelines to settle the dispute and have them send a letter to the borrower to have the credit agencies update the listings.
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Snets
Nitroglycerin


Joined: 12 Nov 2008
Posts: 875
Location: Palm Beach County

Re: Fannie Mae DO and Disputed accounts on credit report
PostPosted: Sat Feb 04, 2012 7:08 pm Reply with quoteBack to top

Well we tried that and the two places BMW and Citi both indicated that the FACT Act required that they stay on there and they could not remove them. The fact that the borrower had disputed a notation had to remain as proof that they disagreed with something and that therefore removing it would be abrogating the rights of the consumer. (Even if the consumer requested it be removed)
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Featster
Flash in the pan


Joined: 28 Aug 2008
Posts: 60
Location: Little Dixie

Re: Fannie Mae DO and Disputed accounts on credit report
PostPosted: Sat Feb 04, 2012 7:18 pm Reply with quoteBack to top

Snets wrote:
Somehow I must have moved out of America. We are no longer allowed to question anything. I have a file - 50 % LTV - plenty of income and good credit but he has some disputed accounts. Three of them. One is his car loan - he is current, the account, he has 1 X30 on this but it was in 2010 - the dispute was that he wasn't late - it was marked resolved. He has another one at a credit card company - 0 X 30 and a zero balance, also marked resolved. Also a very small medical collection that he doesn't even remember disputing. Freedom is going to give me a turn down unless I can get the dispute language removed. The two I know to contact - refuse - say they have marked it resolved and that sould be sufficient and according to the FACT Act they are required to post it that way - why wouldn't the matter end when it says resolved on the credit report. They say it must be done as a manual underwrite and they don't do them. (It's a cash out and $417'r to boot) So disputing any account now removes you from using DO - and even if the matter is resolved and noted that way on the credit report - you are still excluded. Something's wrong with this.....


What are the scores? Got another investor to flip it to?

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