The Motley Fool Discussion Boards

Previous Page

Personal Finances / Buying or Selling a Home

URL:  http://boards.fool.com/vkg-this-ought-to-make-you-feel-better-as-in-30761046.aspx

Subject:  Re: We have accepted an offer on our home Date:  7/3/2013  1:26 PM
Author:  CCinOC Number:  125717 of 128075

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.)

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

Pertinent portion:

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 [2007]. 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 lende