Fannie Mae Selling Guide B3-5.3-02 — Payment History
Fannie Mae Selling Guide B3-5.3-02 — Payment History.
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Verbatim provisions from Fannie Mae Selling Guide B3-5.3-02 — Payment History — each quote is a verified substring of the regulator-published source snapshot, not retyped. Quoted for reference; this is not legal advice. The operational layer (P&P updates, prompts) lives in the regulation update kits.
Fannie Mae Selling Guide B3-5.3-02 — Payment History
B3-5.3-02, Payment History (04/01/2009) Introduction This topic contains information on the borrower’s payment history. Payment History Payment History The lender must review the borrower’s credit report to determine the current status of each credit account (including mortgage accounts), the timeliness of payments, and the frequency, recency, and severity of any delinquent payments. Credit histories that include no late payments, collection or charged-off accounts, foreclosures, deeds-in-lieu, bankruptcies, or other public records information represent a lower credit risk. Credit histories that include recent late payments represent a higher credit risk than those with late payments that occurred more than 24 months ago. When there are payments that were 30, 60, or 90 days (or longer) past due, the lender must determine whether the late payments represent isolated incidences or frequent occurrences. Delinquent payments must be evaluated in the context of the borrower’s overall credit history, including the number and age of accounts, credit utilization, and recent attempts to obtain new credit. For example, a credit history that includes delinquent payments along with recent inquiries and a high balances-to-limits ratio indicates a high credit risk. Credit histories that include foreclosures, deeds-in-lieu, and public records information (such as bankruptcies, judgments, and liens) represent a higher credit risk. The greater the number of such incidences and the more recently they occurred, the higher the credit risk. For information about mortgage payment history, see B3-5.3-03, Previous Mortgage Payment History.
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Source of record: https://claudeforcompliance.com/regs/fnma-sel-b3-5-3-02/
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