FHA Rescinds Select Credit Guides Effective June 15, 2012, with mortgage letter 2012-10

Mortgagee Letter 2012-10 rescinds guidelines regarding disputed accounts and collection accounts that were announced February 28, 2012, via Mortgagee Letter 2012-03.

Here are the 2 things YOU NEED TO KNOW about these changes:

1. Effective now, the FHA guides revert back to the previous guides regarding disputed accounts and collection accounts, meaning the DE underwriter has to make the decision whether disputed accounts and collection accounts must be paid as a condition of loan approval.

2. The following changes from ML 2012-03 will still be effective July 1, 2012:

• A P&L and balance sheet are required for self-employed borrowers if 3 months have passed since the last tax return filing.

• A spouse, brother, stepbrother, sister, stepsister, aunt, and uncle are included in the definition of family.

Click here to review Mortgagee Letter 2012-03, dated February 28, 2012.

Click here to read Mortgagee Letter 2012-10 in its entirety.

If you would like to apply for a Mortgage Loan, you can APPLY ONLINE HERE, you can call John Thomas at 302-703-0727.

John R. Thomas – NMLS 38783

Certified Mortgage Planner – Primary Residential Mortgage, Inc.

302-703-0727 DE Office / 610-906-3109 PA Office / 410-412-3319 MD Office

248 E Chestnut Hill Rd, Newark, DE 19713