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| CitiMortgage | Credit | Garnishments | A garnishment occurs when an employer or other asset holder is required to send/apply borrower monies,
wage, or property directly to a specific debt or creditor. This is often, but not always, brought about by the nonpayment
of a debt. The underwriter should find out the reason for the garnishment, document explanation (in
writing or verified via telephone) and continue processing. If the borrower has a garnishment, the monthly debt
should be included in the total debt ratio. |
| MetLife Home Loans | Credit | Garnishments | Outstanding judgments, garnishments, liens AUS Underwriting:
AUS must be aware of and findings must indicate such. Handle per AUS recommendation (findings)
Manual Underwriting:
Must be paid prior to or at closing |
| GMAC | Credit | Garnishments | Major Adverse Credit - Collection accounts, charge-off accounts, judgments, liens, delinquent property taxes, repossessions, garnishments, and non-mortgage accounts currently 90 days or more delinquent. For Major Adverse accounts reporting within the past 24 months: ? Major adverse accounts reported in the past 24 months are not allowed; however, isolated accounts with less than a $500 cumulative balance are permitted. These accounts may be left open provided they do not affect title 'For Major adverse accounts reporting older than 24 months: ? All State, IRS, and property tax liens (subject property and other properties), regardless of seasoning, are required to be paid whether or not they currently affect title. No payment plans or subordination is allowed ? All other adverse accounts over 24 months old that do not affect title are not required to be paid |
| M AND T Mortgage | Credit | Garnishments | Collection accounts, charge-off accounts, judgments, liens, delinquent property taxes, repossessions, garnishments and
accounts currently 90 days or more delinquent are considered to be major adverse credit. In these cases, the following
applies:
• Documented Medical accounts will not be required to be paid (<$2,500 cumulative).
• All State, IRS and property tax liens are required to be paid, whether or not they currently affect title. No payment
plans or subordination is allowed. Property tax liens on other properties will be considered major adverse credit.
• Any current 90-day or more delinquent account must be brought current before or at closing.
• Collection accounts, charge-off accounts, judgments and garnishments that do not affect title may be left open as
long as the cumulative amounts are less than $500. |
| PHH | Credit | Garnishments | 3.8. Judgments, Garnishments, Liens, Charge-offs, and Collections (Revised: May 18, 2007)
When a credit report shows judgments, garnishments, liens, charge-offs, or collection accounts, this is an indication the customer has not met a credit obligation as agreed.
Conventional Conforming
Customer must provide a satisfactory explanation detailing extenuating circumstances
Accounts must be paid in full prior to or at closing with verification of sufficient funds.
Loans (secured or unsecured) or credit cards to pay off judgments, garnishments, liens, charge-offs, or collection accounts is not permitted.
If a valid dispute exists and is fully verified and documented, the accounts may not be required to be paid in full (tax liens excluded). The customer must provide the following:
Satisfactory explanation detailing extenuating circumstances
Documentation from and to a third party to evidence dispute. Customer must be currently involved with the dispute at time of application.
Primary Residence scored through DU/LP:
Collection and charge-off accounts do not have to be satisfied provided the debt will not threaten PHH's first lien position. Accounts that impact first lien position include but are not limited to Foreclosure, Lawsuit, Judgment, Tax Lien, Bankruptcy, Repossession etc.
DU loan must receive an eligible score based on the product selected
LP loans must receive an Accept score
Second Homes scored through DU/LP:
Collection and charge-off accounts totaling no more than $5,000 do not have to be satisfied.
Note: Total collections exceeding $5,000 must be paid in their entirety.
DU loan must receive an eligible score based on the product selected
LP loans must receive an Accept score
Investment properties scored through DU/LP:
Collection and charge-off accounts up to $250 per account (not to exceed $1,000 combined) do not have to be satisfied.
Note: Total collections exceeding $250 per account and/or $1,000 in aggregate must be paid in their entirety.
DU loan must receive an eligible score based on the product selected
LP loans must receive an Accept score
Non-Conforming
Customer must provide a satisfactory explanation detailing extenuating circumstances
Accounts must be paid in full prior to or at closing with verification of sufficient funds
The use of gift funds, loans (secured or unsecured) or credit cards to pay off judgments, garnishments, liens, charge-offs, or collection accounts is not permitted |
| SunTrust | Credit | Garnishments | • All judgments,
garnishments and/or liens
must be paid in full at or
prior to closing.
• The borrower must provide
a satisfactory explanation
letter with payoff
documentation.
• The borrower must have
re-established credit, as
reflected on the credit
report in the file. |
| Mortgage Services III | Credit | Garnishments | MSI generally requires the borrower to pay off at (or prior to) closing. If the total balance of accounts is $5,000 or less we will not require them to be paid.*Documentation must substantiate that the accounts pose no threat to our mortgage lien and are not likely to affect the borrower’s equity position.*MSI requires that all outstanding judgments and tax liens must be paid (satisfied), regardless of AUS findings.
Notes:*If the AUS requires that the amount be paid, the AUS supersedes the MSI requirement. |
| Sydion Financial | Credit | Garnishments | Judgments, garnishments, and tax liens require written explanation from the borrower, and must be fully satisfied. The
borrower should utilize their own funds to pay off the obligation. Loan proceeds from the mortgage may not be used
to pay off these types of delinquencies. |
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