Fannie Mae, which as most of you know operates in the secondary mortgage market, apparently has recently instituted some new guidelines concerning disputed items on a person's credit report. Fannie Mae will no longer issue a preapproval for mortgage applications when the applicant's credit report shows a disputed item. In order to receive a preapproval the credit report must be free of any disputed items plus meet all of the other normal Fannie Mae criteria. The disputed items must be removed from dispute or totally removed before Fannie Mae will even consider the application for preapproval.  It is not known if this new guideline will affect Freddie Mac preapprovals or is just a temporary guideline on the part of Fannie Mac. This is a major detriment to an already beleaguered mortgage market.

If you are in the market for a new home please make sure that there are no items on your credit report that are under dispute. Also please remember to NEVER dispute an item on your credit report via the internet. When you dispute an item on-line under the law you relinquish some very basic credit rights.

Please remember that today your credit report has an impact on almost an unbelievable part of your life. Review it often. Also please remember that the credit score numbers the credit bureaus show you are not the same ones a mortgage banker or auto dealer sees. They can all be different.

If you have any questions please send me an email.

Thanks and have a great day.

Ron