FHA is aware that the national credit reporting agencies (CRAs) have, as of July 1, 2017, and in accordance with the National Consumer Assistance Plan, stopped reporting certain forms of consumer debt that the CRAs regard as insufficiently verifiable.
FHA policy has not changed as a result of this decision by the CRAs. Specifically, FHA has not imposed any additional documentation requirements. Mortgagees may continue to rely upon the evaluation of the credit risk assessment made by TOTAL Scorecard, and should continue to use CRA credit reports in accordance with current guidance. To the extent, however, that a mortgagee is aware of any material debt absent from a CRA credit report, that mortgagee should adhere to FHA’s credit underwriting requirements re: reconciling discrepancies between credit reports and other available data in the mortgage application.
FHA is reviewing its current policy to evaluate the need for any changes, including any technical updates or clarifying language.
HQ Policy Determination