Credit Report

A credit report comparable to a Factual Data Credit Report must be issued by an independent credit reporting agency which has a contract with FHA or VA or is otherwise acceptable to MHMFA. Such report must verify current employment, salary, all debts listed on the credit application including terms, balances and ratings of the Borrower and other household members. It must list all other debts, in addition to all legal information, including without limitation, suits, judgments, foreclosures, garnishments, bankruptcies and divorce actions, discovered by a search of the public records. If there has been a change in employment within the past two years, the report must also contain information as to the Borrower'spreviousemployment, locationand salary. If the credit bureau does not verify current employment and income, Seller must provide separate written verification of these items. Note: In addition to reviewing the files delivered by Seller, MHMFA will also make test appraisals, spot check credit reports and make other checks in order to assure proper underwriting. In the event MHMFAinits solediscretiondetermines that a credit report is inadequate, MHMFA reserves the right to declare as unacceptable the credit reporting source originating such report, in which event Seller agrees not to use such credit reporting source for Mortgage Loans in whicha LoanParticipationmay be purchased by MHMFA. APPRAISAL GUIDELINES