TIP OF THE DAY- FHA CLEAR CAVIRS

TIP OF THE DAY-FHA  CLEAR CAIVRS

It is an "either, or" situation. Meaning, in order for a borrower to be eligible for FHA financing in regards to delinquent federal non-tax debt, the lender must provide a clear CAIVRS authorization OR verification the debt has been resolved in accordance with the Debt Collection Improvement Act. That means the lender must document the borrower is on an official repayment plan with the debtor agency in which case a "clear" CAIVRS authorization would not be necessary.

Please refer to Handbook 4000.1 Section II A. 1. (10).

justin brown