Are late payments normally reported while DIL is in process?

We went through a DIL 2.5 years ago. The process took 10 months from when we requested the DIL. We turned in our package and moved out - as we could not pay - it was 6 more months from that point until the deed transfer was recorded. We had completed everything required at that point and were waiting on the lender - they continued to report late payments for those 6 months to Credit Agencies. Is this normal in the DIL process? Can we have those late payments removed?