Pam Marron Home Lending

Delete Credit Disputes

September 19, 2017 by · Leave a Comment 

How the Consumer can take “Dispute” off of their credit themselves for free

  1. Email customer credit report. Follow steps 3 and 4 to locate all repositories with dispute.
  2. Go to credit report. On account where dispute shows up, click on link (XP/TU/EF) (under PAID) to see individual 3 repositories.

  1. Below is what 3 individual repositories look like under Original Tradelines for creditor above. There can be up to 3 disputes noted, or 1 for each repository. Check each under Remarks for the word Dispute, Disputed or Disputes. Whatever Bureau the Dispute is noted for may need be deleted from credit report.

Important Note: Experian and Equifax below show Dispute in remark. TransUnion does not. Borrower only needs to request Dispute be deleted from Experian and Equifax.

disputes 2

  1. Call the Creditor (Vanderblt Mortgage, ph# listed on credit report). Tell them you no longer want to dispute validity of the debt & to remove the comment. Tell them you are in the process of a mortgage and clarify that this will be done in 72 hours.
  2. Ask that the dispute be deleted and request a letter from the creditor to confirm.
  3. Consumer calls each bureau back after 72 hours and confirm the disputed verbiage from contacted bureaus have been removed. Then, your housing counselor, loan originator or lender can re-pull a new tri-merged credit report.
    1. EFX#800-203-7843
    2. XPN#800-493-1058
    3. TU#800-916-8800

Through your HCA or lender that credit report received from, re-pull credit 48 hours after dispute removal requested.

How A Lender can Delete Dispute Through Rapid Rescore

Below is a generic dispute removal request letter if your credit bureau must do a Rapid Rescore. There is a cost for this.

Provide the letter shown below noting each account that dispute shows up on credit report for and the account#. Even if the dispute is noted under 1 to 3 of the repositories (EF/TU/XP), only list the account once with the account # on this letter. (Experian and Equifax only in example above.) Loan Officer/Processor must sign. Loan officer must pay for if file in process.

DATE

Equifax                       Transunion                  Experian                     Credit Reporting Agency name and address go here

PO Box 740256          PO Box 2000              PO Box 2002             100 Main Street

Atlanta, GA  30374    Chester, PA                 Allen, TX  75013        Anywhere, USA zipcode

RE:      TRADELINE AND ACCOUNT #

To Whom It May Concern:

I/We are writing to request the term “account information disputed by consumer” and/or “consumer disputes this account information” be removed from my/our account(s)/credit report(s).  I/We had previously disputed erroneous information that was reporting, but the above creditor(s) has since corrected this information, therefore, I/we no longer dispute the information being reported.  I/We have requested that each creditor update this with the bureaus.

I/We are requesting that it be removed as soon as possible, as I/we are no longer disputing this account or its status.

Sincerely,

BORROWER SIGNS NAME HERE

CONSUMER                                                              CONSUMER

CONSUMER ADDRESS                                           CONSUMER ADDRESS

SS#                                                                              SS#

In accordance with the Fair Credit Reporting Act (Section 611), CIC Credit will submit the above signed letter to all three repositories on behalf of the consumer. In order for dispute verbiage to be removed from the report thru the Rapid Rescore ™ process, this letter must be signed and dated by all consumers and Loan Officer/Processor.Please be aware, the removal of dispute verbiage through the rescore process in no way guarantees the creditor will not report the dispute to the repositories on their regular data download at their next reporting interval. The consumer must also contact each creditor to have them also remove the dispute and comments from the reporting data. CIC Credit will not be held liable for the creditor reporting the dispute after the rescore had been completed.LOAN OFFICER OR PROCESSOR SIGNES HERE AND DATES____________________________________________________ __________________Loan Officer/ Processor Acknowledgment                                       Date

 

ForeclosureCreditFix.com now open to check if foreclosure code on past short sale or modification

September 18, 2017 by · Leave a Comment 

ForeclosureCreditFix.com now open to check if foreclosure code on past short sale or modification

By Pamela Marron | September 2017 | for National Mortgage Professional Magazine

Though the consumer pays for this service upfront, loan originators can provide a credit towards the cost at the closing of a new mortgage. Loan originators who agree to provide this credit will be promoted on the Foreclosure Credit Fix Network map at http://foreclosurecreditfix.com/network along with lenders, realtors and credit reporting agencies who want to assist these clients.

 What do nearly 3 million past short-sellers and over 5 million homeowners who have had a modification have in common? All of them may be affected by a foreclosure code that continues to be applied to mortgage credit of a past short sale or modification and results in a new conventional mortgage denial.

 HUD approved counseling agencies have launched an effort to check for a foreclosure code on mortgage credit of past short sellers and those who have had a modification and get it corrected before the consumer attempts to get a new mortgage. Though this service is for the affected consumer, it is also the resource for loan originators, lenders, realtors and credit reporting agencies to send clients to for help. Thanks to the National Foundation for Credit Counseling (NFCC.org) and member HUD approved counseling agency Navicore Solutions, affected consumers can get this problem checked out and resolved before they purchase a home again. Clients can call 1-866-702-4557 or email housing@navicoresolutions.org. When the problem is corrected and these clients are “mortgage ready”, they can be referred to loan originators, lenders and realtors.

The foreclosure code issue affects past short sellers and those with a modification who apply for a new conventional mortgage. There are three reasons why this problem is not being caught and dealt with by lenders ahead of a purchase:

  1. affected consumers have met the four-year wait timeframe required after a short sale or the two-year wait timeframe required after a modification.
  2. The foreclosure code is not visible on a tri-merged credit report.
  3. because of the 2 previous reasons, there is no urgency of lenders to run these loans through the Fannie Mae and Freddie Mac automated underwriting systems upfront.

The problem is often found during a live contract when the loan is run through both the Fannie Mae and Freddie Mac automated underwriting systems. When it is found, the consumer has four options:

  1. Re-run the loan through the Fannie Mae Desktop underwriting system using Fannie Mae’s workaround. (Freddie Mac does not have a workaround.)
  2. Change the loan to an FHA mortgage which allows for a manual underwrite.
  3. Change the loan to a portfolio conventional mortgage which is usually a higher interest rate with greater costs and more down payment required.
  4. lose the contract.

The solution can be a two-step process. The first step determines if the foreclosure code exists and could include utilizing the Fannie Mae workaround. The second step is to make sure that a more recent “date reported” of the affected account does not exist. If the automated system reads that the short sale or modification occurred within the minimum wait timeframe, this can be a reason for a denial. The “date reported” problem often occurs when a “dispute” is put on the affected account. Because the account is re-opened, the more recent “date reported” is recorded and cannot be changed.

Other pre-purchase housing and credit counseling is also available from HUD approved counselors about buying a home, renting, default, foreclosure avoidance, credit issues and reverse mortgages. Some services are free and others are on a sliding scale basis. To find counselors in your area, go to HUD Approved Housing Counseling Agencies at https://www.hud.gov/offices/hsg/sfh/hcc/hcs.cfm, click on your state and check under Counseling Services and for agencies in your area.

For more in-depth credit counseling and debt management (NOT to be confused with credit repair), go to the National Foundation for Credit Counseling (NFCC.org) agency locator at https://www.nfcc.org/locator/. All member agencies have HUD approved housing counselors with additional specialized training to deal with credit issues.

As we turn the corner on the housing crisis, lingering problems still need our attention. Thinking of those who were affected by Hurricane Harvey, the mortgage and real estate industries have an opportunity to form new, strong alliances with housing counseling agencies for specialized services that we are not equipped or trained to deal with.

Stay tuned.