Open Letter to Fannie Mae

loan origination nightmare #9744

We are working to finalize conditions for a scheduled p/a closing date and the

underwriter at Direct Mortgage has added the little ditty that a tradeline that has a sub-titled DISPUTED ITEM wording underneath it, and has a $0 balance, 0 30’s, 0 60’s, 0 90’s on a 48 month history, and marked R1 must be changed so that the words DISPUTED ITEM do not show up.

We are supposedly a week from closing (I understand this is my fault for not keeping up with change #3988456 in the last 3 years), but I have been advised by Credit Plus credit bureau that this cannot be resolved by simply the consumer writing to XP, TU, or EF that this item is no longer in dispute.

Actually, I must get the Creditor to state on its letterhead that its not in dispute, which

(how will they know without the consumer telling them that the consumer no longer is disputing anything?)

So, now that I have the consumer’s signed statement that he is not disputing a $0 balance 0,0,0 late, I come to find out that the Creditor will only respond to the consumer by snail mail. Then, I get that (hopefully accurate) letter to the repositories and wait about 2 or 3 days for a QuickScore revision. $$$

Looks like about 2 to 3 weeks time delay. Extension time coming, HUD, please be patient. What?

Only a $375.00 extension fee? How generous. Does anybody give a (expletive deleted here) anymore?

Credit Plus tells me that this a  rather recent change and a rather frequent new event.

It all is from the wording of the Fannie Mae findings on a conventional loan with the following, and I quote from the findings:

“ If the tradeline does belong to borrower and the reported payment history is accurate, it must be taken into consideration in the credit risk assessment. To ensure it is considered, the lender may obtain a new credit report with the tradeline no longer reported as disputed and resubmit the loan casefile to DU, or the lender may manually underwrite the loan.”

Now, let me ask, how many underwriters are manually underwriting Fannie Mae conventional loans these days???

So, that means by default, that it must be changed to “ no longer reported as disputed”.

And, to get a collection agency or creditor to mark a potentially valid, accurate dispute of, say,  $210, with your plumber who ruined your new carpeting, as not disputed, then you must go make cozy with your plumber. (Or DON”T BUY THAT HOUSE!) Just give him the $210 and say it was all a big mistake, but could you please get that NO LONGER IN DISPUTE, I GOT HIS MONEY, THANK YOU FANNIE MAE!! letter out by _______?

I think Fannie Mae must have bought stock in collection agencies before they thought of this one.