For medical collections, if an applicant has nothing but medical collections listed on their credit report, are we allowed to use those collections as a denial reason? We do exclude those from an underwriting factor but we have also had an examiner tell us that we cannot use that as a denial reason. Can you clarify this for me?

If it's not a factor you consider in underwriting, it cannot be a denial reason.

Thank you for clarifying and I will pass this along to our lenders.