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4 Questions About CAIVRS Answered

Have you been informed that you are on the CAIVRS list and now you may lose a government backed loan?  Read on to learn the answers to some of your CAIVRS questions including "Can I get a CAIVRS waiver?"


What is the CAIVRS System?

CAIVRS (Credit Alert Verification Reporting System) is operated by the U.S. Department of Housing and Urban Development (HUD) and is used by lenders and by government agencies to determine if a loan applicant has any federal debt that is currently in default or foreclosure or has had a claim paid by the reporting agency. You may be able to get a CAIVRS waiver, however.

For instance, if you are applying for an FHA loan, that is, a loan backed by the United States government, your lender will access the CAIVRS system to determine your eligibility.  If you have a prior default on an FHA loan or other federal debt, such as an SBA loan or a school loan, more than likely you will show up on CAIVRS and may lose your opportunity to obtain the credit you are seeking.  As such, it can be very important to know this information and how to deal with a report on CAIVRS.

FHA CAIVRS Exception

What Does a Claim on CAIVRS Mean?

Lenders must use CAIVRS to screen all borrowers , including nonprofit agencies acting as borrowers. You are not eligible for Federally-related credit if CAIVRS indicates that you are presently delinquent on a Federal debt, or have had a claim paid by a federal agency based on a debt you incurred such as a foreclosure or an SBA loan default.  For FHA loans, a claim will affect you if such a claim has been paid within the previous three years on a loan made and insured on your behalf by HUD.

A debt is in "delinquent status" for purposes of CAIVRS reporting if the debt has not been paid within 90 days of the payment due date. The payment due date is the date specified in the creditor agency's initial written demand for payment or applicable agreement or instrument (including a post-delinquency repayment agreement).

Each federal agency may have its own exceptions to CAIVRS reporting.  For instance, FHA-insured mortgages have certain exceptions for divorce, bankruptcy, or case in which a subsequent assuming party defaulted.

Can I Get a CAIVRS Waiver?

You can apply for a CAIVRS waiver from the government agency that you are applying for credit.  That is, if you are apply for an SBA backed business loan, but had a CAIVRS claim pay by HUD, you will have to request a CAIVRS waiver from the SBA, not HUD.

A waiver can only be granted by the head of a government agency or the chief financial officer.  Your CAIVRS waiver request must meet certain guidelines and provide the requisite information prescribed by Federal law.

How Should I Proceed?

If you are dealing with a CAIVRS reporting issue, assertive legal counsel versed in Federal debt workouts can be a great asset.  You may have other avenues for eliminating your CAIVRS claim reporting in addition to a waiver request.  Protect Law Group focuses on Federal debt issues, including CAIVRS claim reporting issues and waiver requests.  Contact one of our Federal debt workout attorneys today for a case evaluation at 1-888-756-9969.

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