New Credit Report Changes Coming Soon for Kentucky Rural Housing Mortgage USDA Loans and Fico Scores for 2017
In an effort to make credit reports more accurate, all three credit reporting agencies of Equifax, Experian, and TransUnion will no longer provide information regarding civil judgments and tax liens on reports as of July 1, 2017. The impact to credit scores is anticipated to be minimal. There are no changes to the current reporting of foreclosure and bankruptcy data.
There will be no updates to HB-1-3555 and the following will continue to apply for Single Family Housing Guaranteed Loans:
- Lenders must secure a marketable first lien as required in 7 CFR Part 3555, 3555.204 and HB-1-3555 Chapter 16.
- USDA’s current policy regarding judgments and tax liens in 3555.151(i)(5) and HB-1-3555 Chapter 10: 10.10 and Attachment 10-B will apply.
- If a lender identifies a judgment or tax lien for a GUS “Accept” loan file, the manual entry of the debt on the “Assets and Liabilities” application page will not require the file to be downgraded. The GUS “Accept” recommendation remains valid and the lender must appropriately underwrite the loan file under the requirements of 7 CFR 3555 and HB-1-3555.
USDA will continue to monitor the performance of guaranteed loans to determine if any future policy changes may be necessary.
