Underwriting must follow (GUS) Guaranteed Underwriting System Automated Findings to determine if a collection account must be paid. Typically GUS will require the following: If the credit report show a cumulative balance of $2,000 or more for collection accounts: The debt(s) must be paid in full prior to or at closing, or Payment arrangements must be made with the creditor and the monthly payment included in the DTI, or A monthly payment of 5% of the outstanding balances of each collection must be included in the borrower’s DTI. While all collections required by GUS must be paid, RHS grants the lender/underwriter the authority to require any collection (whether GUS recommended or not) to be paid prior to or at close. Joel Lobb (NMLS#57916) Senior Loan Officer American Mortgage Solutions, Inc. 10602 Timberwood Circle Suite 3 Louisville, KY 40223 Company ID #1364 | MB73346 Text/call 502-905-3708 ...
