• disputed medical accounts; and
• disputed derogatory credit resulting from identity theft, credit card theft or unauthorized use.
• Accounts of a non-borrowing spouse in a community property state
If a Borrower is disputing non-derogatory accounts, or is disputing accounts which are not indicated on the credit report as being disputed, the lender must analyze the effect of the disputed accounts on the Borrower’s ability to repay the loan. If the dispute results in the Borrower’s monthly debt payments utilized in computing the DTI ratio being less than the amount indicated on the credit report, the Borrower must provide documentation of the lower payments. Non-Derogatory Disputed Accounts include the following types of accounts:
• disputed accounts with zero balance;
• disputed accounts with late payments aged 24 months or greater; or
• disputed accounts that are current and paid as agreed.
For additional information see Handbook 4000.1 II.A.5.a.iii(F); II.A.5.a.iv(L)–(M) available at https://www.hud.gov/program_offices/administration/hudclips/handbooks/hsgh