A Creditworthy Institution is a Mortgagee with a credit background for the seven-year period preceding the FHA Mortgagee approval application or the lifespan of the institution if less than seven years that:
- reflects no delinquent accounts or collections and no legal actions; or
- reflects legal actions that have been adequately resolved, and/or delinquent accounts or collections that have been adequately resolved or that have an acceptable explanation.
- reflects no delinquent accounts or collections, and reflects no legal actions that would impair the individual’s credit, such as a foreclosure action, judgment, lien, or bankruptcy; or
- reflects legal actions that have been adequately resolved, and/or delinquent accounts or collections that have been adequately resolved or that have an acceptable explanation.
- A commercial credit report not more than 90 days old with its application and a written explanation for all negative items disclosed on the credit report.
- A personal credit report for each of its Principal Owners and Corporate Officers with its application. The personal credit report must be a Residential Mortgage Credit Report (RMCR) or a Tri-Merged Credit Report (TRMCR) not more than 90 days old. A written explanation must be provided from the relevant Principal Owner or Corporate Officer for any negative item disclosed on the credit report.