Credit Alert Verification Reporting System (CAIVRS)
CAIVRS was developed by the Department of Housing and Urban Development in June 1987 as a shared database of defaulted Federal debtors, and enables processors of applications for Federal credit benefits to identify individuals who are in default or have had claims paid on direct or guaranteed Federal loans, or are delinquent or other debts owed to Federal agencies.
In 1989, the Office of Management and Budget set a performance goal that certain program agencies and their authorized financial institutions should use CAIVRS to conduct prescreening to determine a loan applicant's credit status with the Federal Government. This methodology enables the program agencies to prescreen their borrowers and to broaden the Federal Government's base in determining an applicant's creditworthiness. Some non-tangible factors are:
Verifying that loan applicants are not in default or delinquent on direct or guaranteed loans of participating Federal programs as required by OMB Circular A -129.
Providing authorized users with a means to prescreen applicants for Federal credit benefits, to avoid extending benefits to individuals who are credit risks.
Demonstrating to the public the Federal Government's commitment to collecting delinquent debt and the importance of meeting Federal Obligations.
Access to CAIVRS for HUD approved lenders is available through FHAConnection. Participating agencies or authorized lending institutions can access CAIVRS through CAIVRS.
CAIVRS may be accessed Monday through Saturday, 8:00 a.m. to 10:00 p.m. US Eastern Standard Time. CAIVRS is not available on Federal holidays.
Under what legal authority is CAIVRS implemented?
Title 31, United States Code, Section 3720B bars "delinquent Federal debtors from obtaining Federal loans or loan insurance guarantees."
The Office of Management and Budget (OMB) has mandated that all Federal Credit agencies prescreen all applicants for non-delinquency in Federal debt, and, if practical, do the prescreening through a system of shared data. CAIVRS provides a single repository of delinquent Federal debtor records from HUD, USDA, VA, and SBA. Over 61,000 authorized users including HUD staff, as well as lenders approved by HUD, USDA, VA, SBA, and the Department of Education may access this data when evaluating applicants for federal debt.
Most credit bureau reports do not identify insured debts as being delinquent Federal debts. CAIVRS is the only system of shared delinquent Federal debtor records currently available to support the OMB mandate.
CAIVRS authority derives from Public Law 100-503, "The Computer Matching and Privacy Protection Act of 1988," as amended; Office of Management and Budget (OMB) Circulars A-129 (Managing Federal Credit Programs) and A-70 (Policies and Guidelines for Federal Credit Programs); the Budget and Accounting Acts of 1921 and 1950, as amended; the Debt Collection Act of 1982, as amended; the Deficit Reduction Act of 1984, as amended, and the Debt Collection Improvement Act of 1996, as amended.
CAIVRS supports the HUD Home Ownership Centers and HUD 2020 Reform Initiatives.