How do we handle disputed accounts
Updated: 11/09/2018
Article #: 149
Per underwriting at HNB they follow FNMA:
- If the borrower is not responsible for the disputed accounts, the lender must obtain supporting documentation and may deliver the loan as a DU loan. No further action is necessary regarding the disputed tradelines.
- If the borrower is responsible for the disputed account, the lender must investigate the information, including determining the aspect of the tradeline that is being disputed. If the borrower is able to provide documentation to disprove any adverse information (such as canceled checks), the lender may deliver the loan as a DU loan.
- If the borrower is responsible for the disputed account and the account and tradeline information is accurate and complete, the loan is not eligible for delivery as a DU loan. The lender may manually underwrite the loan if the transaction is eligible for manual underwriting.
The monthly payments for the disputed tradelines must be included in the debt-to-income ratio if the accounts belong to the borrower.
Original Question:
Doesn't Huntington require disputes be removed? Our borrower has 3 disputes. Two have no balance. But one has a large balance of $10K. Borrower has actually tried to pay it off and was told he could not.
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