If you happen to be applying for a home loan whether it be for purchase or refinance purposes, and there is a trade line on your credit report that is in dispute…watch out. Your desired financing could get delayed or even denied all because of that dispute, even if the dispute is legitimate.
Fannie Mae and Freddie Mac, both purchasers of mortgages that meet their criteria, have a policy of kicking back mortgage applications where a disputed credit report trade line is found. It’s kicked back to the loan broker/direct lender for manual underwriting, per the LA Times article, due to the Fannie Mae and or Freddie Mac automated underwriting system flagging and kicking back the application due to the disputed credit issue.
Even though consumers, by law, are allowed to dispute items found in their credit bureau file, this policy could adversely affect people looking to refi, or purchase a home where Fannie Mae or Freddie Mac will be purchasing the mortgage on the secondary market.
Take a look at the LA Times article, and contact your loan officer to see if this could be a potential issue for you in your next real estate transaction. Looking for a Santa Clarita home, and want to discuss your home financing options? Contact The Renno Lending Team of Prospect Mortgage.
Call us @ (661) 964-1760 for immediate Santa Clarita Real Estate assistance!
Click here to search the entire Santa Clarita MLS system – UPDATED HOURLY
Tract Directory for Santa Clarita – Over 500 tracts to browse through!
Email It!
