Just when you think you have all the bases covered in applying for your mortgage loan, Fannie Mae and Freddie Mac have added another stumbling block into the application process. Seems some unscrupulous individuals figured out that by disputing an account claim and having a notation added to your credit report removed that tradeline from being taken
into credit scoring consideration and thus was left out of the automated loan approval process.

Now, just exactly how they were getting these disputed tradelines on credit reports past the lenders underwriting process that is supposed to occur on all automatically approved DU or LP files, were not sure. Typically, if there is any question about a tradeline, an underwriter will request more information and require documentation to verify the veracity of the disputed account. But hey, in this day and age, we guess anything is possible.

Tags: credit reports, mortgages