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Personal Finances / Buying or Selling a Home
|Subject: Re: We have accepted an offer on our home||Date: 7/3/2013 1:26 PM|
|Author: CCinOC||Number: 125717 of 126961|
vkg, this ought to make you feel better as in "it could be worse." Here's a loan challenge I've been working on for two weeks. (Of course, from your vantage point, it looks like nothing's happening on the file.)
After our story broke, and after [syndicated financial columnist Kenneth] 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.
'Punting' To Creditors
"Fannie Mae's eligibility requirements do not prohibit the delivery of a loan to Fannie Mae where the borrower has disputed information on their credit report. In order to protect borrowers from adverse impacts resulting from inaccurate reporting data, our policy requires the lender to determine and document whether or not the disputed information is accurate and underwrite the borrower's credit accordingly," Bonitatibus said. [...]
Fannie actually adopted the policy late last year . But it appears that Fannie's only mention of it came in the October 16, 2008 "Release Notes" for Desktop Underwriter Version 7.1, under the section "Miscellaneous," in which it told lenders:
"The following Verification message will be issued on DU Version 7.1 loan casefiles to remind lenders of this requirement: DU identified the following tradeline(s) as disputed by the borrower and did not include the tradeline(s) in the credit risk assessment. The lender must verify the accuracy of the tradeline(s) by determining if it belongs to the borrower and by confirming the accuracy of the payment history. If the tradeline does not belong to the borrower, or the reported payment history is inaccurate, no further action is necessary. If the tradeline does belong to the borrower and the reported payment history is accurate, it must be taken into consideration in the credit risk assessment. To ensure it is considered, the lender may obtain a new credit report with the tradeline no longer reported as disputed and resubmit the loan casefile to DU, or the lender may manually underwrite the loan."
It would all be humorous if it weren't so pathetic.
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