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#2124395 - 03/30/17 04:36 PM Adverse Action Reason?
City Girl Offline
100 Club
Joined: Sep 2005
Posts: 159
Midwest
CAIVRS fail due to default. What denial reason do I use? Other....but what description?

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Lending Compliance
#2124406 - 03/30/17 05:01 PM Re: Adverse Action Reason? City Girl
ComplyWithMeeee Offline
Junior Member
Joined: Jul 2016
Posts: 30
I would stay away from using 'Other' if/when there are other options available on the AAN.

Under the 'Credit' tab you can choose whatever selection makes the most sense based on the details of the CAIVRS report. A few options are 'delinquent past or present obligations with others' , 'Foreclosure or repossession', 'Unacceptable payment record on previous mortgage', etc.

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#2124448 - 03/30/17 06:44 PM Re: Adverse Action Reason? ComplyWithMeeee
City Girl Offline
100 Club
Joined: Sep 2005
Posts: 159
Midwest
The credit report is good. The default that is on the CAIVRS is not on the credit report.

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#2124449 - 03/30/17 06:45 PM Re: Adverse Action Reason? City Girl
Skittles Online
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Skittles
Joined: Sep 2002
Posts: 13,965
TN
Can you explain to me what this means? I've never heard of a CAIVRS.
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#2124455 - 03/30/17 06:58 PM Re: Adverse Action Reason? City Girl
Docs Offline
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Joined: May 2016
Posts: 241
Maybe use "Other" and add the words "delinquent federal debt"?

Credit Alert Verification Reporting System
From HUD website:
Title 31, United States Code, Section 3720B bars "delinquent Federal debtors from obtaining Federal loans or loan insurance guarantees."

The Office of Management and Budget (OMB) has mandated that all Federal Credit agencies prescreen all applicants for non-delinquency in Federal debt, and, if practical, do the prescreening through a system of shared data. CAIVRS provides a single repository of delinquent Federal debtor records from HUD, USDA, VA, and SBA. Over 61,000 authorized users including HUD staff, as well as lenders approved by HUD, USDA, VA, SBA, and the Department of Education may access this data when evaluating applicants for federal debt.

Most credit bureau reports do not identify insured debts as being delinquent Federal debts. CAIVRS is the only system of shared delinquent Federal debtor records currently available to support the OMB mandate.

CAIVRS authority derives from Public Law 100-503, "The Computer Matching and Privacy Protection Act of 1988," as amended; Office of Management and Budget (OMB) Circulars A-129 (Managing Federal Credit Programs) and A-70 (Policies and Guidelines for Federal Credit Programs); the Budget and Accounting Acts of 1921 and 1950, as amended; the Debt Collection Act of 1982, as amended; the Deficit Reduction Act of 1984, as amended, and the Debt Collection Improvement Act of 1996, as amended.
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#2124457 - 03/30/17 07:00 PM Re: Adverse Action Reason? City Girl
CRA Padawan Offline
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Joined: Oct 2008
Posts: 144
Iowa
CAIVRS=Credit Alert Verification Reporting System this is used to determine if a loan applicant has any federal debt in default or foreclosure or has had a claim paid by the reporting agency within last three years. A lot of government loans require the lender to run the loan applicant through the online database to determine these types of delinquencies.

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#2124482 - 03/30/17 07:54 PM Re: Adverse Action Reason? City Girl
ComplyWithMeeee Offline
Junior Member
Joined: Jul 2016
Posts: 30
The first word in CAIVRS is Credit. Something in the borrower's credit (whether on their actual report or not) is preventing them from passing. If they had delinquent mortgage at one time, this should be mentioned on the AAN sent to the borrower. If they defaulted on a previous government backed mortgage, there are more specific options one can include on the AAN. I have always been told that you should use 'Other' only when nothing else fits....it's a last resort box.

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