MBS- FNMA 4.5 price: 102-01 closed.

10-yr Treasury Yield: 3.36% closed.

So here’s another one for you:

One of Fannie Mae’s new rules is that it will not purchase a loan file from a lender if it has a tradeline (credit account) that is “in dispute”.  So, even if it’s been years since the dispute— and the creditor in question never bothered to report any updates to the three credit bureaus, such as that it’s no longer in dispute— the credit report must be cleared of this before a lender who intends to sell the file to Fannie Mae will fund the loan. 

Sounds like it shouldn’t be so challenging, right?  To clear something from a credit report you just need a written confirmation from the creditor expressing what should be cleared up and then you must send this confirmation to the three bureaus.  In general it should take a month or so to get it cleared.  If a rush is needed, most credit reporting companies offer an expedited option to get this done in a few days.  BUT… to get the darn letter from the creditor they may take weeks depending upon who the creditor is. 

My suggestion to you borrowers is to get involved in these situations.  You have far more clout than anyone else in dealing with your creditor.  Your loan officer and processor can bark all they want to a creditor and it may not mean a hill of beans to a bank or mortgage servicing company who may claim they have to “research” the situation before issuing the letter.  If you as a borrower have either exhausted attempts to resolve a dispute or have no dispute with what is reported, it shouldn’t take days (let alone weeks) for that creditor to issue a written confirmation that there is no longer any dispute on the account. 

If you find disputes on your credit report, contact the creditor right away and make the effort to obtain written confirmation.  Get it off of the three credit bureaus records: Equifax, Trans Union, and Experian.  You’ll be glad you did because it won’t come up on any more credit reports ONLY if you remove it from all three bureaus.