Bulletin 2024-085 Closed End Second (CES) Summary and Underwriting Guide Updates

Current Policy

New Policy

3A.1 Minimum Tradeline Requirements:

For a credit report and credit score to be considered valid, all of the following requirements must be met for each borrower contributing income:

·        Minimum 3 open tradelines, with at least 1 tradeline open for a minimum 24 months from the application date.

·        1 tradeline must have had activity in the past 12 months from the application date.

·        The minimum of 3 tradelines must have had no significant adverse credit, such as charge-offs or collections.

·        Authorized user accounts, and self-reported or other non-traditional credit ratings are ineligible for use in developing or supporting a credit score.

·        Borrower not permitted to open a new tradeline after application date to meet the minimum tradeline requirement.

3A.1 Minimum Tradeline Requirements:

For a credit report and credit score to be considered valid, one of the following must be met:

·        Minimum three (3) open tradelines, with at least one (1) tradeline open for a minimum 24 months from the application date.

OR

·        Minimum of two (2) open tradelines with one (1) of the two being a satisfactory mortgage rating for at least twelve (12) months. At least one (1) of the two (2) tradelines must have been open for a minimum of 24 months from the application date.

Notes:

·        Each borrower contributing income for qualifying purposes must meet the minimum tradeline requirements; however, borrowers not contributing income for qualifying purposes are not subject to the minimum tradeline requirements.

·        The minimum required tradelines must have had no significant adverse credit, such as charge-offs or collections.

·        Authorized user accounts, jointly held with a co-borrower may be considered in the minimum tradeline requirements for both borrowers.

·        Borrowers are not permitted to open a new tradeline after application date to meet the minimum tradeline requirement.