A Credit Reporting Agency may report negative information for seven years.
- Crminal convictions may be reported without any time limitation.
- Bankruptcy – up to 10 yrs.
- Response to application for a job with a salary > $75,000 – no time limit.
- Information reported re: an application for > $150,000 worth of credit or life insurance – no time limit.
- Lawsuit or an unpaid judgment – the longer of 7 yrs or until the statute of limitations expires.
FICO score is as follows:
- 35 percent payment histories
- 30 percent amount of debt (e.g. don’t use over 50% of a credit line).
- 15 percent length of time credit line has been open (a longer history is better if there have always been timely payments).
- 10 percent very recent history including new applications for credit.
- 10 percent type/mix of credit, includes installment loans (like car loans), leases, mortgages, credit cards, and so on.
Effective April 1, 2009, FHA appraisers must now provide the following:
- The Market Conditions Addendum (Fannie Form 1004MC/Freddie Form 71)
- At least two comparable sales that occurred within 90 days of appraisal date
- A minimum of two active listings or pending sales in addition to the three closed comparables
- Bracketed listings using both dwelling size and sales price when possible
- Adjusted active listings to reflect the list-to-sales price ratio
- Adjusted pending sales to reflect contract sales price when possible
- The original list price and any revised list prices
- Reconciliation of adjusted values of active or pending sales with adjusted values of closed comparable sales
- Absorption rate analysis
- Known or reported sales concessions on active and pending sales
This update includes this warning: “Direct Endorsement Lenders are reminded that if the appraiser they selected provides a poor or fraudulent appraisal that leads FHA to insure a mortgage at an inflated amount, the lender is held responsible equally with the appraiser for the integrity, accuracy and thoroughness of an appraisal submitted to FHA.”