How to Dispute Credit Report Errors While in the Mortgage Process

By
Mortgage and Lending with NMLS #216987, IL Lic. 031.0006220, WI Licensed. APMC NMLS #175656 IL Lic 031.0006220/WI
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 How to Dispute Credit Report Errors
While in the Mortgage Process



     Veterans of the Mortgage Industry can remember a time when clients suffering errors or inaccuracies within their Credit Report, were typically advised to "dispute"  those errors ...  

    But because of recent changes that have taken place in the Mortgage Industry's Automated Underwriting Systems (commonly referred to as AUS), the advice given to current morhttp://genemundtchicagolandmortgage.blogspot.com/2014/04/just-like-your-underwear-credit-needs.htmltgage clients may be quite different from that of the past.  
 
 
     Today's advice ... and the suggestion as to the timing and direction of recourse, will be based on a variety of information related on the Report, including:
 
 
  • When the errors, inaccuracies, or reported items showing on the Credit Report took place
  • The Nature of the items involved (Late Payments, Judgments, Liens, etc.)
  • What financing actions the client is presently contemplating



    First let me say, it IS important to correct errors and inaccuracies found on your Credit Report.  But I can't stress this enough ... the timing in which you pursue it is very important too.

    I know that sounds contrary to what would seem "common sense".  But currently, with the implementation of the new Automated Underwriting systems mentioned above, a "disputed" account(s) showing on your Credit Report can mean the difference between your Mortgage Application being approved or denied.  

     Disputed accounts are often viewed as a negative factor ... and can be seen as a reason to deny your loan ... or at minimum, make your disputed accounts a "condition of approval".  That would mean that those accounts in question become "undisputed". Resolution would need to be found prior to Underwriters allowing Approval of your loan or your Closing.  That could cause major problems and hold-ups to your entire transaction.


     So what should you do if your Credit Report comes back showing errors or inaccuracies?  First, talk to your Mortgage LenderIn the Chicago area, that's me.  Gain timely insight and advice as to how to best address the issue at hand and how to proceed.   

https://1609956119.secure-loancenter.com/FreeConsult.aspx     But typically, I'll suggest that you provide written evidence and proof via documentation to the 3 Credit Bureaus that will support and prove your claims.  The addresses and contact info for the 3 major Credit Bureaus are:  

     Equifax
     P.O. Box 740241 
     Atlanta, GA   30374
     1.800.685.1111
     www.equifax.com   

     TransUnion
     P.O. Box 2000 
     Chester, PA   19022
     1.800.888.4213 
     www.transunion.com

     Experian
     P.O. Box 2002 
     Allen, TX    75013
     1.888.397.3742 
     www.experian.com    



     Remember:  Do not register an official "dispute" with the Credit Bureaus!  Don't use that terminology within the written note or evidence you provide.  Provide  only the data, documentation, and info needed to correct the errors, re-rate the account, or simply delete the account(s) in question.


     It's important to know that there is typically no easy or quick path to correcting errors on a Credit Report.  And it's unbelievably stressful to face them when trying to buy a home you love. 



     Which is why I always suggest running and checking your Credit Reportat minimum, once a year.  That advice is especially important when considering a home purchase or refinance in the near future.  Should issues need addressing, you've then allowed yourself enough time to do so without the stress of Contract constraints looming.



     How to Dispute Credit Report Errors While in the Mortgage Process ... Follow the guidance provided by your Mortgage Lender to achieve the quickest and best results.  You'll then be capable of moving ahead with a home purchase fully confident in reaching a successful outcome ...

http://www.genemundt.com/ContactUs.aspx


     *  Hoping to Buy, Construct, or Refinance a home in the Chicago area?  Contact Me.  I'll put my 36 years of mortgage experience and expertise hard to work on your behalf.
     I can be easily found at:

Direct:  815.524.2280

Cell or Text:  708.921.6331 

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Gene Mundt

 Mortgage Originator  -  NMLS #216987    

                                 IL Lic. #031.0006220  -  WI License #216987                                                                                                    

NMLS #175656

 

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Re-Blogged 1 time:

Re-Blogged By Re-Blogged At
  1. Tammie White, Broker 05/10/2014 02:46 PM
Topic:
Lending / Financial
Location:
Illinois Will County Joliet
Groups:
Mortgages
Chicago Area Real Estate BUZZ!
1st Time Buyers
Consumer Mortgage Tips
Bananatude
Tags:
credit report
mortgages
underwriting
disputes
credit bureaus
correcting credit reports
errors on credit reports

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Show All Comments
Rainmaker
1,434,758
Yolanda Cordova-Gilbert
Richmond, TX

Gene,

 Great advice, you are right all of this is contra what one would think is logical. I hope all is well in your world.

May 07, 2014 09:00 AM #1
Ambassador
3,914,429
George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert

Gene excellent advice, this is becoming more of an issue than it use to be.

May 07, 2014 09:35 AM #2
Rainmaker
1,250,578
Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi
NMLS #216987, IL Lic. 031.0006220, WI Licensed. APMC NMLS #175656 - New Lenox, IL
708.921.6331 - 40+ yrs experience

Yolanda:  Thank you ... and in today's real estate and financing world?  Contrary rules ...

George:  You and I both know ... some clients cannot withstand one extra condition or "hit" to their process.  Disputes can knock them right out of buying ...

Gene

May 07, 2014 10:25 AM #3
Rainmaker
3,249,716
Lou Ludwig
Ludwig & Associates - Boca Raton, FL
Designations Earned CRB, CRS, CIPS, GRI, SRES, TRC

Gene

Thanks for sharing your insight on a disputed credit report.

Good luck and success.

Lou Ludwig

May 08, 2014 07:38 AM #4
Rainmaker
1,250,578
Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi
NMLS #216987, IL Lic. 031.0006220, WI Licensed. APMC NMLS #175656 - New Lenox, IL
708.921.6331 - 40+ yrs experience

Appreciate you stopping by and commenting, Lou ...

Gene

May 08, 2014 08:51 AM #5
Rainer
40,425
Mike Rankin
ClearPath Mortgage Solutions, Inc. NMLS #1394615 - Albany, NY
Mortgage Consultant

Gene - thanks for offering your tips! That's exactly why I refer to this as the "Credit Score Game". You have to know not only what to do, but when to do it. Have a great weekend!

May 09, 2014 09:57 AM #6
Rainmaker
1,250,578
Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi
NMLS #216987, IL Lic. 031.0006220, WI Licensed. APMC NMLS #175656 - New Lenox, IL
708.921.6331 - 40+ yrs experience

Definitely true, Mike.  And exactly why we Lenders are needed.  We help not only with the path taken ... but that timing you speak of ...

Gene

May 09, 2014 10:06 AM #7
Rainer
261,252
Dinah Stallworth-Lewis
Priority Real Estate LLC - 318.332.8281 - Natchitoches, LA
NATCHITOCHES, LA HOMES FOR SALE

Gene,

Great info!   Your suggestion to make the disputed items on the credit report and condition of approval is awesome.  This tidbit of info is beneficial in closing home loan transactions.  Great blog.

May 10, 2014 03:08 AM #8
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Rainmaker
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Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi

708.921.6331 - 40+ yrs experience
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