Change Date

September 15, 2004, Change 4

This section has been changed to create subsection lettering.

a. Credit Report Standards

Credit reports used in analyzing VA loans must be either:

·   Three-file Merged Credit Reports (MCR), or

·   Residential Mortgage Credit Reports (RMCR).

The credit report must be less than 120 days old (180 days for new construction).

·   For automatically closed loans, the date of the credit report must be within 120 days of the date the note is signed (180 days for new construction).

·   For prior approval loans, the date of the credit report must be within 120 days of the date the application is received by VA (180 days for new construction).

If an RMCR is Used

The standards applicable to an RMCR include, but are not limited to, the following:

·   The report must be prepared by a reputable credit reporting agency.

·   Each account with a balance must have been checked with the creditor within 90 days of the date of the credit report.

·   For each debt listed, the report must provide the creditor’s name, date the account was opened, high credit, current status, required payment, unpaid balance, and payment history.

·   The report must name at least 2 national repositories of credit records contacted for each location in which the borrower has resided during the most recent 2 years.

-Separate repository inquiries are required for any coborrowers with individual credit records.

·   The report must include all available public records information that is not considered obsolete under the Fair Credit Reporting Act; such as bankruptcies, judgments, law suits, foreclosures and tax liens.

·   The RMCR must be an original report, with no erasures, whiteouts, or alterations.

·   The report must contain a 24 month employment and residency history.

·   All inquiries made within the last 90 days must be included on the report.