Unacceptable Uses

The establishment of a nontraditional credit history is not acceptable for the following scenarios:

• The originator is able to obtain a credit score for the borrower despite the borrower’s limited use of credit.

• The borrower has a sufficient amount of credit to obtain a credit score and the representative credit score is less than the minimum required.

• The borrower’s traditional credit history indicates significant derogatory references, such as a prior bankruptcy or foreclosure. In these cases, the borrower must have re-established credit in accordance with Section Significant Derogatory Credit Events — Waiting Periods and Re-establishing Credit, including the establishment of traditional credit and a credit score.