Credit Basics Flashcards


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created 6 days ago by jvallette1
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1

Inaccurate Debt

If the debt on the credit report doesn't match documentation in the file,

  • verify the actual payment
  • resubmit AUS with actual payment
  • Confirm that the new debt will not be used towards MRI
2

Forclosure, Short Sale, Deed in Lieu

FHA requires the passage of 3 years from the case assignment

3

Bankruptcy

FHA requires the passage of 2 years since the discharge date from the CASE ASSIGNMENT DATE

4

Collection Accounts

Dispute and not disputed

SEE CHARTS

5

Manual UNDERWRITING

WE DO NOT DO THESE

6

Disputed Derogatory Accounts refer to

  • disputed charge offs
  • disputed collections
  • disputed accounts
  • With late payments in the last 24 months
7

Alerts

All alerts must be cleared or addressed. The most common alert is an "address alert" which is cleared using a signed and dated letter of explanation by the borrower

8

Inquires

Inquires within 90 days of the credit report need to be explained

9

Public Records BANKRUPTCY and Judgements

"dismissed" status means the borrower filed for bankruptcy but was NOT approved

10

Decision Score

Lowest mid score of all borrowers

11

Community Property States

AZ, CA, ID, LA, NM, TX, WA, WI

A credit report is also required for the non purchasing spouse NPS

  • IF NPS does not have SSN we need name, dob, previous address (2 years)
12

Derogatory Accounts

  • collections
  • charge off accounts
  • late payment accounts
  • judgements
  • bankruptcy
  • foreclosure
  • other derogatory info
13

Judgements

against a borrower or NPS in a community property state must be paid in full or resolved

RESOLVED (means)

  • valid repayment agreement
  • Timely payments for 3 months
  • monthly payment included in DTI
14

Subordination Agreement

If the judgement shows as a lien on title, a subordination agreement is required

15

A VOM is required

when the MORTGAGE is NOT on the Credit report

16

NOT CONSIDERED DEBT

  • medical collections
  • federal, State local taxes, if not delinquent and no payments are required
  • Automatic deductions from Savings when not associated w/another type of obligation
  • FICA and other retirement 401K
  • Collateralized loans secured by depositoty accounts
  • Utilities
  • Community Cost
  • Union Dues
  • Insurance, other than property Insurance
  • Open Accounts with Zero Balances
  • Voluntary deductions when not associated w another type of obligation