Last week, January 7th, the Consumer Financial Protection Bureau (CFPB) finalized a rule that bans the inclusion of all medical bills from credit reports and ultimately used for credit decisions. The CFPB determined in a study, that failure to pay medical bills is not a good indicator on whether the person will default on other loan obligations. You can read the full article here.

While in the mortgage industry these obligations found on a credit report have been omitted for determining debt-to-income (DTI) ratios, they were still factored into the overall FICO score. These scores often resulted in disqualification or higher interest rates for mortgage loan applications.

If you have any questions over whether you would be qualified for a home loan, contact one of our mortgage specialists to understand your options.