Short answer
It usually means extra review. On a Fannie Mae loan, the DU system first scores your file with the disputed account included. If you get an approval that way, nothing more is needed. If not, DU looks again without it, and the lender must then find out whether the account is yours and whether the information is right. If it is yours and accurate, the loan may need manual underwriting.
Why do lenders care about disputes?
A dispute tells the credit bureau that you think the information may be wrong. Until that is settled, the lender can't be sure the report is accurate, so Fannie Mae's rules have the lender check the account before relying on a result that leaves it out.
What will the lender ask for?
- If the account isn't yours, papers that show that, such as a letter from the creditor or a fraud report.
- If it's yours but the report is wrong, proof such as canceled checks or statements that show the payments were made.
- If it's yours and accurate, the monthly payment counts in your debt-to-income ratio.
Should I dispute something right before I apply?
If something on your report is truly wrong, disputing it is your right and can help. Starting early gives the bureau time to investigate and close the dispute before your loan is underwritten. Disputing an accurate account just to raise a score usually backfires, since the lender has to look into it anyway. Talk with Tom first so you know how it may affect timing.
Are medical bills treated differently?
Fannie Mae's DU doesn't use collections reported as medical in its risk assessment, and medical tradelines aren't shown in DU's disputed account message. See collections and judgments before a mortgage.
Sources
- Fannie Mae Selling Guide B3-5.3-09, DU Credit Report Analysis (Disputed Credit Report Tradelines)
- Fannie Mae Selling Guide B3-2-03, Risk Factors Evaluated by DU
- CFPB, How do I dispute an error on my credit report?
Checked November 2, 2026. Rules and dates change, so confirm current details before you rely on them.
General information only, not tax or legal advice. Program availability, eligibility and terms vary by lender and are subject to change and to underwriting approval. Not a commitment to lend.