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Underwriting and Liabilities in Dispute

When underwriting a loan through Fannie Mae, any liability that is "In Dispute" will stop the processing of your loan. Following are the steps that should be taken to remove the dispute comment from the consumer's credit report.

Note: Removing a dispute comment may result in a score change.

Creditor Disputed Liabilities

If the dispute comment on the liability was placed by the creditor, then only the creditor can remove it. A letter from the creditor on their letterhead stating that the account is no longer in dispute or that the dispute comment has been removed, should be obtained and then submitted through Rapid Update process.

Consumer Disputed Liabilities

If the consumer placed the dispute comment on the liability, the options for removal are described below for each repository:

Equifax:

  • The consumer should contact Equifax directly and advise them that they are no longer disputing the account.
  • Telephone Number - 800-203-7843
  • Website - www.equifax.com/fcra or www.annualcreditreport.com
  • Important Note: If the consumer formally "disputes" the dispute comment, it will automatically result in a reinvestigation by Equifax and could take up to 30 days to clear. While in reinvestigation there is nothing that can be done to remove the dispute comment.

OR the consumer can:

  • Submit a letter to Equifax stating that they are no longer disputing the account. This would be accepted documentation for a Rapid Update order. A copy of the letter should also be submitted to the creditor, so that the dispute comment is not put back on the file.

Experian:

The consumer can EITHER:

OR the consumer can:

  • Submit a letter to Experian stating that they are no longer disputing the account. This would be accepted documentation for a Rapid Update order. A copy of the letter should also be submitted to the creditor, so that the dispute comment is not put back on the file.

TransUnion:

The consumer can EITHER:

OR the consumer can:

  • Submit a letter to TransUnion stating that they are no longer disputing the account. This would be accepted documentation for a Rapid Update order. A copy of the letter should also be submitted to the creditor, so that the dispute comment is not put back on the file.



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