All FHA Programs: All borrowers must have at least one credit score. To be sure that there is no new adverse credit activity, new debt, or material inquiries, CBCMA requires a soft pull credit report or UDM (Undisclosed Debt Monitoring) report within ten days prior to close. CBCMA highly recommends correspondents utilize a debt monitoring service that checks for new debt or material inquiries. While soft pull credit reports are acceptable, they may disclose additional information that may require an update to the AUS.
If there is a new material inquiry, then CBCMA will require that an LOE explaining the new material inquiry be provided to determine if new debt was incurred. If new debt was incurred prior to closing, then FHA guidelines may require that the file be re-run through AUS and the debt added to the borrower’s final application.