FHA rescinds "$1,000 dispute" rule

The Federal Housing Administration has done an about-face, rescinding a rule that would have prevented anyone with credit disputes totaling more than $1,000 from getting a loan.

When originally put in place (April 1), potential borrowers would either have to pay off their balances to get them below the $1,000 threshold, or provide documentation that a payment arrangement was in place.

Not surprisingly, there was pushback. A few days after the rule took effect, FHA said that borrowers whose disputed amounts were the result of a “life event” (medical bill, divorce, etc.) could use that to get around the rule.

Then, presumably because of the hue and cry, FHA said it would delay enforcement of the rule until it gathered more industry comments.

Apparently, those comments were along the lines of “NO.” On Friday, FHA rescinded the rule.

About Andrew Kantor

Andrew is VAR's editor and information manager, and -- lessee now -- a former reporter for the Roanoke Times, former technology columnist for USA Today, and a former magazine editor for a bunch of places. He hails from New York with stops in Connecticut, New Jersey, Cincinnati, Columbus, and Roanoke.
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