Miami Home Loan staff has good news for both new purchases and if a home owner needs to refinance. We at Miami Home Loan are always on the lookout for anything that will help our buyers qualify easier. The new FHA new mortgagee letter, ML-12-10, rescinds the Collection and the Dispute policy that was set to go into effect on July 1, 2012. This means the dispute policy will revert back to the old dispute policy (i.e. disputes over $500 in the last 24 months are a downgrade, and underwriting can make individual decisions on these) These typically show up on your Desktop Underwriting Finding, and the collection policy will be at the discretion of the underwriter and the overall credit risk on the file. This gives a borrow time to either get these collections resolved, or, get them out of the collection and dispute categories of the report. This is good news as it will mean business as usual.
Judgments will have to be paid in full unless there are payment arrangements set up for 6 to 12 months, and that will be at the discretion of the underwriter.
We at Miami Home Loan hope these notes are helpful and encourage all buyers to get their pre-qualifications done as quickly as possible to identify any issues that might cause their loan to not qualify. We will help you get this done prior to the formal underwriting process, so, call us now at Miami Home Loan to make sure you can qualify for your new home!