The Mortgagee Letter changes requirements for borrowers with individual or multiple disputed credit collections. Borrowers with a singular or cumulative balance over $1,000 must resolve the accounts prior to or at the time of closing. Resolution can be paying of the debt or establishing payment arrangements with a minimum of three months of verified payments made. The letter also makes changes to 1) year-to-date profit & loss statements and balance sheet requirements, and 2) the definition of family members. This guidance goes into effect on April 1, 2012, and REALTORS should work with clients early to ensure this issue is addressed prior to closing.