Late Mortgage Payments

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    • #241714

      In November we applied for a new mortgage. This is for a new build and in order for the builder to help us with closing costs we have to go through their financing company. They are able to put our info in through a automated underwriting system to see if there would be any problems. They did a hard pull of our credit report and we passed. Well we had a dispute listed with our mortgage company on the credit report. This dispute was put on by our current mortgage company because I had called and ask a question. We had the disputes removed and they new lender pulled another report. Now our scores are below 640 which is their requirement. The new mortgage will be under my husbands name only. In November his scores were 641, 627 & 652. In December our 2nd mortgage reported we were late in November. We call them and they said we have been a month late for the last year. What….. They have been reporting us on time until November. Didn’t realize we had missed a payment (if you saw their statement you would understand). As of January 10 my husbands scores are 588, 573 and 657. The LO called and told us that since we now had a 30 day late on our 2nd mortgage and our scores dropped they will have to do a manual underwrite with the credit report from November. We had 5 late payments with our first mortgage in 2009 (we changed banks and didn’t realized we were not using the online system correctly). We have made all payments on time since. The LO called and told us that because of the late pays in 2009 they would not approve our loan. We tried getting the 2nd mortgage company to do a goodwill adjustment but refused. We sent an email to the CEO on Thursday and just waiting to see what happens. Could someone help me understand why we failed manual underwrite, but passed automated underwrite. I thought as long as you paid your mortgage on time for 12 months previous late pays would not be an issue. Also can the 2nd mortgage company go back to 2011 and change our pay history from paying on time to 30 days late? Thanks!

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