What is a CAIVRS report?

What is a CAIVRS Report Used For?

CAIVRS Report - Mortgage

CAIVRS Report – Mortgage

What is a CAIVRS Report?  Quite simply put it is a way that the US Government tells on those that have delinquent Federal Debt.  CAIVRS stands for “Credit Alert Verification Reporting System.”   Various lenders that are participating in or offering Federal Loan programs use CAIVRS to make sure that the loan applicant applying for a new Arizona home loan is not currently behind or default on any other Federal related Debt.  In fact CAIVRS will tell a lender if an applicant has “a Federal lien, judgment or a Federal loan that is currently in default or foreclosure, or has had a claim paid by a reporting agency” (www.hud.gov).

Each borrower that is applying for a government insured home loan is pre-screened using CAIVRS.  If their CAIVRS report comes back negatively they cannot obtain a new home loan even if they meet the specific mortgage guidelines for the loan they are qualifying for.   If a borrower does not have any outstanding Federal Debt/Federal Liens their CAIVRS will come back blank.  In other words a blank report is good in the CAIVRS world!

What is a CAIVRS Report Using as a Data Source

The government’s CAIVRS system pulls data for borrowers from several different government databases.  The databases that CAIVRS utilizes are:

VA (Veteran Affairs)
FHA (Federal Housing Administration)
USDA (US Department of Agriculture)
DOJ (Department of Justice)
DOE (Department of Education)
SBA (Small Business Administration)

What is a CAIVRS Report’s Role in Mortgage Lending

Borrower’s applying for an FHA, VA or USDA loan will have a CAIVRS report generated prior to full loan approval.  If they do not pass the CAIVRS screening they are not eligible for an FHA, VA or USDA mortgage.  The government uses CAIVRS to both make sure they do not continue lending Federally insured loans to those that have defaulted on previous Federal Debt.  They also use it to track down those that owe money on defaulted Federal Loans.

If a borrower has debt show up on their CAIVRS they can often “clean it up” by paying off the Federal Debt that is currently in default.   A mortgage lender can regenerate a CAIVRS once a borrower has notified them that the debt has been paid.  Also, foreclosures on federally insured mortgages will show up on CAIVRS however if the borrower is past the minimum waiting timeframe than they will be eligible for a new government insured loan relative to CAIVRS (they would still need to meet all other relative mortgage guidelines).

HINT:  When your lender asks you “are you default on any federal debt?” do NOT try to hide anything.  It will pop up on your CAIVRS and could cost you time and money once you get into final loan processing and underwriting.

Please contact us if you have were wondering what a CAIVRS report is and how it impacts you.  Team Phone:  602.435.2149   Team Email:   Team@JeremyHouse.com

By Jeremy House
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CAIVRS Report and Your Mortgage Approval

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Jeremy is the Founder, Team Lead and a Sr. Loan Officer with The HOUSE Team. Over the past several years he has ranked in the top 1% of all loan officers nationwide. In the mortgage industry, the devil is in the details and Jeremy prides himself on being a student and an expert when it comes to everything mortgage related.

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Comments

  1. We (my husband, and I) had a chapter 7 discharge granted in October of 2011 in which we included our house in. The circumstance of the chapter 7 was an overwhelming amount of med. bills which were incurred due to 1. being uninsured, and 2. my son almost perishing. I was a homemaker, so unfortunately I do not think I would be able to get the “back to work exception.” Albeit, I have since been at my current job for 1.5 years, received 2 raises and a promotion. My husband also got a better paying job (he has now been at 5 years with several raises and a promotion.)

    Fast forward to today…We were told all is good, and we thought we were in the clear, so we have put a contract on a house, and got to the final process, and come to find out I am not on the Caivrs list, but my husband is! I talked with them, and got them to readjust the date to Dec. 2015 ( as they did have it at Jan. 2017!) for my husband, but obviously this is not enough. My husband was listed as the co-buyer on this new home we have a contract on (due to his higher income, and my higher credit score.)

    Our current loan officer says we have a strong profile (we have really built back up well,) so it’s a crying shame, as we already put down escrow, and appraisal fees. What is worse is that it’s a deal of a lifetime, and I feel the loan officer isn’t working with us as much as he should be to rectify the situation. I am 100% lost, and feeling defeated. We even cancelled Christmas, so we could get this house (no tree, no presents, and working extra hours.)

    I have limited time, and feel so very very lost. The stress/anxiety has been getting to me so much I can’t even sleep at night. I am 100% devastated. Any guidance would be very much appreciated. I am honestly considering seeing if our chances are better with a different lender.

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