If the borrower has $1,000 or more collectively in disputed derogatory credit accounts, the Mortgagee (lender) must include a monthly payment in the expense analysis.
The following items are excluded from the expense analysis:
- disputed medical accounts; and
- disputed derogatory credit resulting from identity theft, credit card theft or unauthorized use.
- disputed accounts with zero balance
- disputed accounts with late payments aged 24 months or greater
- disputed accounts that are current and paid as agreed
For additional information see Mortgagee Letter 2016-10 and the attached revised HECM Financial Assessment and Property Charge Guide, Section 3.87 and 3.88 at