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What Is CAIVRS?

(Lender's Handbook, Chapter 4, Topic 6c)

CAIVRS is an acronym for Credit Alert Interactive Voice Response System. It is a HUDmaintained computer information system that enables lenders to learn if an applicant has previously defaulted on a federally-assisted loan from any of the following agencies::

 

 Department of Agriculture,

 Small Business Administration,

 Department of Education,

 HUD, and

 VA.

 

The VA default information includes:

 

 Overpayments on education cases,

 Overpayments on disability benefits income,

 Claims paid due to home foreclosures

CAIVRS screening is required on all applicants, including co-obligors.

WHAT IF CAIVRS SHOWS A DEBT?

(Lender's Handbook, Chapter 4, Topics 6d, e)

An applicant cannot be considered a satisfactory credit risk if he or she is presently delinquent or in default on any debt to the Federal Government until the delinquent account has been brought current or satisfactory arrangements have been made between the applicant and the Federal agency. Refinancing of a delinquent VA Loan with an IRRRL satisfies this requirement.

 

An applicant cannot be considered a satisfactory credit risk if he or she has a judgment lien against his or her property for a debt owed to the Government until the judgment is paid or otherwise satisfied.