(Christina) I am in the process of buying a house and we are closing in 3 weeks. My lender asked me to explain two negatives on my credit, one being an $88 medical bill from 2009 that I was unaware of. I did not realize this was for underwriting purposes only, so yesterday I called the collector to find out about the account, and paid it in full thinking it would help. My lender then told me this would “dramatically” impact my credit in a negative way. After reading about the “Fair Isaac” decision on no penalty for paying off a debt collection in full, I am doubting what my lender told me. With three weeks until closing, how quickly might this be reported to my credit, and what impact might it have on my closing? We have been approved for FHA and losing this house over paying an $88 debt will be crushing for us. Thank you. (more…)
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Archive for the ‘Mortgage Qualification’ Category
Can I Legally Stop Credit Card Debt from Destroying my Credit?
(Jocelyn from Florida) I am trying to buy a house but my credit cards have big balances. Can I legally stop credit card debt from destroying my credit? (more…)
Can a Lender Request My IRS 1040 Form?
(j from Pennsylvania) Can a lender request my irs 1040 form? (more…)
Hundreds Arrested in Mortgage Fraud Probe
Hundreds of mortgage professionals have been arrested within the past week, with most arrests occurring Wednesday, June 18. According to the FBI, there may be as many as 1,400 additional investigations, which could lead to many more arrests for fraud. (more…)
ARM Holders Should Refinance
Holders of adjustable rate mortgages (ARMs) that are facing a reset (dramatic increase) in their rates and monthly payments should consider refinancing with a fixed rate mortgage loan. Actions by the Fed to cut short-term interest rates should hold mortgage rates low for the next several months. (more…)
Does Credit Counseling Affect Credit?
I hear some people say that credit counseling is just like bankruptcy. Others say that you cannot get a loan if you are on a debt management plan. There is so much incorrect information being discussed, and regrettably, it is often by professional mortgage loan officers and bankers.
Let’s bury the hatchet on those old urban legends. Here is the truth, from Fair Isaac Corporation, the Federal Housing Administration (FHA) and the US Department of Housing and Urban Development. (more…)
Washington Mutual in Big Trouble
Washington Mutual was accused of pressuring home appraisers to provide inflated values. Now New York Attorney General Andrew Cuomo is expanding the investigation to include Fannie Mae and Freddie Mac, who purchased or guaranteed many of these loans.
According to Brian Faith of Fannie Mae, “if the examiner determines we own or guarantee mortgages with inflated appraisals, our guide states that the lender must buy back the loans that do not meet our standards and requirements.” This would open Washington Mutual to tremendous liabilities from homeowner defaults. (more…)
NY Attorney General: Subprime Loans Deliberately Inflated
New York Attorney General Andrew Cuomo accused a major real estate appraisal company of colluding with First American and Washington Mutual. The company eAppraiseIT may have been pressured to provide inflated home appraisals, a violation of federal law.
His accusations hint at a more widespread practice that would explain the widespread problems in the subprime mortgage industry. Indeed, it is unlikely that these companies are the only ones responsible for current problems plaguing the industry. (more…)
Opt Out to Increase Credit Score?
Tired of getting those pre-approved card offers? You may have found that you can opt out of these offers by calling 888-5-OPT-OUT. This works across all 3 main credit bureaus.
Some mortgage brokers say that this has another unintended affect. They claim that it can give you a couple of extra points on your credit score–points that could get you into a lower interest mortgage. (more…)
