Chapter
2 Mortgage Credit Guidelines Page 2-09 CAIVRS
must be checked for all borrowers, including non-profit agencies acting as a borrower,
on every FHA insured mortgage except streamline refinances. If CAIVRS
indicates that a loan, made or insured by HUD to the borrower is presently delinquent
or that HUD has paid a claim on their behalf, the lender should call the HOC in
their area. You will be asked to furnish pertinent information so that HUD staff
can check HUD's Single Family Information System (SFIS) to verify the date the
claim was paid. HUD will then send a copy of the "K-02 Function Screen" and any
other function screens that the underwriter may need to assist them in making
the credit decision regarding the borrower(s) current eligibility for an FHA insured
loan. The information should be received within 3-working days. When
making a decision whether to issue a waiver of the 3-year waiting period, please
follow the guidelines in HUD
Handbook 4155.1, Rev-5, Paragraph 2-5C. 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.
Please refer to the chart below for explanation of Single Family
Insuring System (SFIS) print out screens:
FUNCTION
SCREEN | EXPLANATION
| K02
| Use
the circled date as 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. |
E05 | Refers
to qualifying assumptions. The name of the original mortgagor is given along with
the date of the assumption. Evidence that the loan was current at the time the
property was sold must be provided. | E10
| Is
used in case of a divorce. Refer to item titled "LAST PAY DATE." If a divorce
has occurred and the non-applicant spouse was awarded the property, the date the
court recorded the divorce should be compared with the "LAST PAY DATE." Evidence
must be provided to show the loan was current at the time of the divorce. |
H01
| Is
used if the loan is in an "ACTIVE STATUS" and a default has occurred, you will
need to contact the lender that is indicated to obtain documentation that the
loan is current. |
If an erroneous social security number has occurred, please contact the Credit
Alert Coordinator at the appropriate Homeownership
Center for assistance. Pre-foreclosure
cases are handled in the same manner as regular foreclosures. If a claim has been
paid, the 3-year waiting period is still in effect. Copies of the "K02 FUNCTION
SCREEN" and any other supporting documentation should be in the case binder when
it is sent for endorsement. Only
information regarding FHA Title II-insured loans is accessible through the Denver
Credit Alert line. For defaults on other types of Government loans please contact
the number that is given on the Credit Alert Interactive Voice Response System
(301) 344-4000, the CLAS Credit Alert Authorization Screen, or the FHA-Connection
Credit Alert Screen. HUD does not require a "clear" or "A" Credit Alert Authorization
Code as a condition for mortgage endorsement but the lender must document and
justify the approval. The
underwriter should provide specific remarks on the HUD-92900-PUR
(or refinance) worksheet, and copies of the appropriate screens and verifications.
Please see: HUD Handbook
4155.1, REV-5, CHG-1, Paragraph 2-3 and 2-5 and the CAIVERS
website. |