Accounts in Dispute

If you have anything to do with the mortgage lending world then you know the pain that Accounts in Dispute have become. The reason for this is that on the 1st round or initial dispute on an account the FICO model will bypass the negative factors in that account.

After the initial dispute is over the account may still have the account disputed narrative however the negatives are again factored in, it appears that HUD finally has caught on and is going to give consumers a break.  Here are the new changes by HUD

With the recent changes by HUD regarding disputed accounts our investors are now adhering to those changes.  Therefore, an exception is no longer necessary on those FHA loans with disputed accounts as long as one of the following parameters is met:

• The disputed account must have a zero balance
• The disputed account is marked as “paid in full” or “resolved”
• The disputed account is both:
  • Less than $500 AND
  • More than 24 months old

There is more to this with manual underwrite requirements however if you have any questions regarding this the strategies used to combat this Account in Dispute issue please contact our staff at Credit Solution Group, chosen the Best Credit Repair Service.