Credit Alert Interaction
Voice Response System

Information by State  Print version

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.