A credit report shows a tradeline with the notation 'Account closed by credit grantor.' What is the most likely implication for mortgage underwriting?
Correct Answer
B) The account may have been closed due to adverse action by the lender
When a credit report shows 'Account closed by credit grantor,' it typically indicates the lender closed the account due to adverse reasons such as missed payments, overlimit conditions, or other risk factors. This differs from voluntary closure and may require explanation during underwriting.
Why This Is the Correct Answer
When a credit report shows 'Account closed by credit grantor,' it typically indicates the lender closed the account due to adverse reasons such as missed payments, overlimit conditions, or other risk factors. This differs from voluntary closure and may require explanation during underwriting.
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A lender provides a Loan Estimate with a $350 credit report fee. The borrower later requests an additional credit report for a co-borrower, costing another $350. How should this be handled regarding tolerance requirements?
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