New FHA Guidelines Regarding Disputed Accounts...

Good Morning!





FHA is finally giving us some relief on disputed accounts.



They have recently modified their underwriting guidelines regarding disputed accounts, and the automatic downgrade to a manual underwrite when disputes exist in a credit report.



Here is how the new guideline reads...



If the credit report reveals that the borrower is disputing any credit accounts, Manual Downgrade of a TOTAL Scorecard Approve/Accept recommendation is not required if:



1. The disputed account has a zero balance.



2. The disputed account is marked as "paid in full", or "resolved".



3. The disputed account is both less than $500, and more than 24 months old, based on the date of dispute.



This is really good news.



This means that a file doesn't have to be automatically downgraded to a manual underwrite if the conditions are right on the disputes.

Have a good week! ...and thanks for reading.


Brett