The Case for QMCR: Investigate Raw Data Conflicts
Conflict in Raw Data can be investigated to find which credit repository is producing FORECLOSURE code for past short sale!
There is often either a conflict in raw data between credit repositories of Experian, Trans Union and Equifax, or in data not visible on the credit report that past short sellers receive.
When short sale credit is coded as a FORECLOSURE or “date reported” is causing a problem, a call by your lender needs to be made to the IT Tech at the credit reporting agency to find which of the repositories is causing the automated Fannie Mae or Freddie Mac underwriting system denial.
The loan that causes the problem is commonly visible on the Fannie Mae Desktop Underwriter/Originator findings. Freddie Mac does not specify which loan is causing the problem in their Loan Prospector findings.
Commonly, FHA and VA loans do not result in a Refer with Caution (denial) because a secondary automated underwriting system (AUS) called Total Scorecard is used. This AUS notifies lenders of a possible pre-foreclosure (short sale) but provides an Approve/Eligible along with direction to the lender to document if there was a short sale or not.