As of April 1st 2012 HUD has announced in the Mortgagee Letter 2012-3 how it will be handling disputed accounts and public records.  In the past when loan application and got a approval with the FHA total scorecard with collections or public records it was up to the DE underwritter to determine if those items needed to be paid.  Now if the disputed items are less than $1000.00 or collections are aged over two years from the last activity as indicated on the latest credit report you are fine.  Now if the borrower has a individual or multiple disputed credit acoounts equal oto or greater than $1000.00 the accounts must be resolved.  If you have made payment arrangements you need to demonstrate atleast 3 months worth before you are able to close. 

Please do not hesitate to call me or e-mail me with any questions you may have when it comes to credit and how FHA views it.

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