CAIVRS

[howellc4]

Any mortgage loan officer, realtor or, attorney familiar with CAIVRS check pertaining to HUD or VA loans (in our case VA), I'd like to ask and open up for discussion the importance of, and procedure of, CAIVRS. The reason for my interest is somewhat outlined in my post "VA Loan - non guarantee".

1)VA loan procedures manual to lenders specifies - the first step in the loan application is to initiate CAIVRS.
Q - if this step were omitted what legal impact would it have on a loan closed as VA loan?

2)If CAIVRS reveals defaulted government debt on the applicant the application is to be immediately halted.
Q - if the CAIVRS was done 7-9 months after closing of a loan how do you halt the app.?

3)Q - In the case of automatic lending procedure what recourse does a lender have in the above scenario? Bearing in mind the 60 day timeframe to submit loan closing packet to VA has long since past.

Enough for now. I have done my homework but find few resources on CAIVRS.I need help from those of you "in the know"
Thanks

[HomeGuru]

1) not applicable since your loan was not a closed VA loan or a loan closed as a VA loan.

2) see #1 above.

3) what do you mean what recourse does the lender have? Recourse to who? And explain the definition of the term automatic lending procedure.

[David J. Miller]

1) VA would not gurantee the loan which means the lender has to hold it in their portfolio with 100% exposure. This means if you default and they have to foreclosue, they could potentially suffer a loss if there is no equity.

2) They can't stop the application as it has already closed. Now they are stuck with a VA loan with no VA guarantee. (Their problem not yours.)

3)The automatic lending procedure gives mortgage companies the authorization to origingate a VA loan and approve it without Va being involved. VA used to underwrite all VA loans. The lender is given this authorization with the condition that if they do not originate the loan according to VA guides, VA will not guarantee the loan. The 60-day timeframe is also the lenders issue, not yours.

[howellc4]

Thanks David - more in my post "VA Loan - non guarantee"

[chochrei]

I had been searching constantly for the past week to find out if a previous delinquent student loan would show up on CAIVRS. Could not find a clear answer anywhere - all I saw was that if your loan was in default it needed to be made current. Nowhere did it say, as long as your loan is now current you will not show up on CAIVRS. Maybe how it was worded was good enough, but for me it wasn't clear enough. Well I just got the green light that we did not show up on CAIVRS. So anyone who shows a delinquent payment on their credit report fret not if you've made the loan current since. Also FYI may last late payment was 1 year ago. I had read some postings online that I needed to not have any late payments for the last 2 years!!!! Hoping if some other people out there have the same question this will help ease their minds.....

[Zigner]

I had been searching constantly for the past week to find out if a previous delinquent student loan would show up on CAIVRS. Could not find a clear answer anywhere - all I saw was that if your loan was in default it needed to be made current. Nowhere did it say, as long as your loan is now current you will not show up on CAIVRS. Maybe how it was worded was good enough, but for me it wasn't clear enough. Well I just got the green light that we did not show up on CAIVRS. So anyone who shows a delinquent payment on their credit report fret not if you've made the loan current since. Also FYI may last late payment was 1 year ago. I had read some postings online that I needed to not have any late payments for the last 2 years!!!! Hoping if some other people out there have the same question this will help ease their minds.....

Holy Schmoley Batman!
This thread is over TEN years old!

Please start your own thread...and don't bring long long LONG dead threads back to life.

[HomeGuru]

This may set the record for old thread revival.