last report vs. last activity

My wife's bank turned down her home loan request because of a 6/98 zero balance charge off, R5.....date last reported is 12/2002. they are using 12/2002. The actual date of last activity is 6/98.

Local mortgage brokers are trying to tell us that this has become rather common practice with the "A" paper banks.

Could her bank get into some trouble for doing this?

Where does it actually say in the FDRA about this issue, I think it is rather vague?

 

The lender is thinking the date reported IS the date of lateness, I talked to the underwriter. They basically will just assume that my wife was late on 12/2002.

 

The lender is thinking the date reported IS the date of lateness, I talked to the underwriter. They basically will just assume that my wife was late on 12/2002.

 

there is an old sears account that was sold to RMA, I spent 3 months last year fighting RMA and all record of RMA is gone. the actual R5 when RMA purchased the account from Sears back in 1998 is still hanging on Equifax. Or in other words listed as a Sears tradeline, not an RMA tradeline which is completly gone.

This sears tradeline showing the date of last Activity as 6/98, but the date of last report is 12/2002. Her bank doesn'r have a problem making an exception for an employee with problem back in 6/98, but they are concerned about the 12/2002 record. they are thinking this is the date of her problem, not 6/98 when we stopped paying the account and RMA purchased the account.

so her report reads date of last activity 6/98, but the date of last report, or the last time I disputed the account with Equifax and they said the account remains is 12/2002.

My wife's bank, WAMU, thinks the date of last record 12/2002 IS the time when she was 120 days late on this account, not the actual real time of 6/98.

Or in other words, even though her eqifax is 650, they think her most recent late pay IS 12/2002 NOT 6/98.

Dog

 

Well loan docs are signing on Monday with an outside broker who has really helped to speed up the home purchase....it is a very long story, but if you know of anyone else that in the state of Washington that could get a purchase and sale completed in 7 business days, well please share. The Wife's bank would take 30+ days just for the freaking loan, and this house purchase has been resurrected by my efforts and the efforts of others at least 2 times a day since last week. Please understand that we still have to sign, fund and record, but if all goes smoothly on Monday the entire deal should possibly be wrapped up by Wednesday?

Anyway, the old charge offs on my wife's account are a few remaining ones that I have had little success in removing, they will fall off in exactly 2 years at which point both her's and my credit will be perfect. The loan we are getting is not the best rate, but a 2/28 arm is kind of a stepping stone to when in 2 years we will refinance the house or possibly sell.

So Ruth at the AG office here in Washington called me on my cell phone to talk to me about the problem or issue. THE ISSUE IS THAT the banks always are looking for ways to keep the average consumer in the dark about the home loan process.

One way to do this is for underwriters to start assuming that the date last reported or updated on your account, say from a failed dispute or such, is the date of last activity or the date of default. Well I would guess that there are many other banks and lenders who will not understand the difference and hence the average consumer will pay much higher fees. The consumer affairs office at the AG office took notes from my ranting over the phone, in the off chance that a case could develop in the future?

Dog