HUD HOC Reference Guide
CAIVRS Credit Alert Verification and Reporting SystemChapter 2
Mortgage and Credit Guidelines
CAIVRS must be checked, via FHA Connection (FHAC), for all borrowers (including nonprofit agencies acting as a borrower) for every FHA insured mortgage except streamline refinances. The borrower is not eligible for FHA financing if CAIVRS indicates he/she is presently delinquent on a federal debt, or has had a claim paid within the previous three years on a loan made and insured by HUD.
If CAIVRS indicates a previous HUD insured loan made to the borrower, is presently delinquent or that HUD has paid a claim on their behalf, the lender should call the jurisdictional HOC for the property location. Lenders will be asked to furnish pertinent information so the HUD staff can check HUD?s Single Family Information System (SFIS) to verify the date the claim was paid.
For defaults on other types of government loans, the lender must refer to the agency that reported the default/claim.
When a "K02 Function Screen" is received, the item "FORM TYPE A" circled date, is the date a claim was paid on behalf of the borrower specified by his/her social security number. THIS DATE SHOULD BE USED TO MAKE THE CREDIT DECISION AND APPLY THE 3-YEAR WAITING PERIOD.
HUD does not require a "clear" or "A" CAIVRS code as a condition for mortgage endorsement, but the lender must document and justify the approval. Further, lenders may not rely on a clear CAIVRS code when there is independent evidence of conflicting delinquent federal obligations.
The lender must provide specific remarks on the HUD-92900-LT form and should provide a copy of the appropriate screens and verifications. The CAIVRS authorization code for each borrower must also be reflected on the HUD-92900-LT.
Please see: HUD Handbook 4155.1, Section 4.A and the CAIVERS website.
|Content Archived: November 5, 2012|