FHA Rescinds its Credit Dispute Rule

The HousingWire reported at the end of last week that FHA has decided to rescind their highly controversial Credit Dispute Rule. This rule would have made getting a FHA loan much more difficult. The guideline would have required borrowers who wanted to qualify for a FHA-insured mortgage to pay off any credit dispute in their history of more than $1,000 or set up a documented payment plan on any unpaid collection accounts. This rule would have had a critical impact on the real estate market, greatly impacting first time home buyers and builders. This illustrates the tug-of-war struggle between protecting the insurance fund and keeping mortage credit available.

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