NEWARK, N.J., June 20, 2012 /PRNewswire/ -- On Friday, June 15th, the FHA rescinded their controversial FHA Mortgage eLetter 12-03 credit policy. The policy, first announced by the FHA on April 1, 2012, proposed to "not qualify" borrowers until all outstanding debts are resolved. The policy would make borrowing more difficult for consumers with negative information reporting on their Credit File, while handing important negotiating leverage over to credit card companies, collection agencies, and bill collectors. Thankfully, the FHA decided the proposed demands "didn't make much sense."
The original policy stated that: "If the borrower has individual or multiple disputed credit accounts or collections with singular or cumulative balances equal to or greater than $1,000, the accounts must be resolved (e.g. payment arrangements with a minimum three months of verified payments made as agreed) or paid in full, prior to, or at the time of closing," said HUD.
A consumer study by the federation of state Public Interest Research Groups (PIRGs) shows that over 76% of the credit reports supplied by Experian, Equifax, and Transunion contain errors and inaccuracies.
"I'm glad the FHA made this change. It will help the Americans most in need to achieve their goal of home ownership," said Jason M. Kaplan Esq., President of The Credit Pros International (http://www.thecreditprosintl.com) and Vice President of the Industry Trade Association NARCRA (http://www.narcra.org).
Mr. Kaplan, Esq. believes that if implemented the FHA would have impeded consumers' credit protection rights. "Consumers have a right under the Fair Credit Reporting Act to dispute inaccurate credit information listed on their credit reports. If they are forced to settle bogus debt, the consumer loses."
"We are all excited to hear that this policy was only an 'April Fool's Joke,'" quipped Kaplan.
About The Credit Pros Intl
The Credit Pros Intl is a nationally recognized credit restoration company that helps Americans remove erroneous credit damage. The company is staffed by Certified FICO™ Professionals and proudly claims an "A" rated accreditation with the BBB. For more information, call The Credit Pros Intl at (800) 411-3050.
(800) 411-3050 x 302
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SOURCE The Credit Pros International