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#2233468 - 03/23/20 02:32 PM Adverse Action - Bankruptcy
mdog76 Offline
Platinum Poster
Joined: Jan 2007
Posts: 645
I've always heard that "bankruptcy" alone is not a good reason for loan denial. Is this still the case or anyone else heard this in the past?

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#2233469 - 03/23/20 02:35 PM Re: Adverse Action - Bankruptcy mdog76
JWills, CRCM Offline
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JWills, CRCM
Joined: May 2013
Posts: 1,741
The Mitten State
We will use 'bankruptcy' as a reason for loan denial if that is the reason that we get from loan product advisor from Freddie Mac.
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Nonsense wakes up the brain cells.

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#2233470 - 03/23/20 02:38 PM Re: Adverse Action - Bankruptcy mdog76
swiggles Offline
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swiggles
Joined: Aug 2001
Posts: 7,333
If it's written in your loan policy and applied equally to everyone with no exceptions, I don't see a problem. My bank's policy is that if the bankruptcy is "x" years old and there has been no derogatory credit during those years, then the loan can be made. But the score still has to measure up which means that derogatory credit before the bankruptcy is still considered.
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The more you sweat in training, the less you bleed in battle.......

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