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2014-KC-0002-002-A
Status
Open
Date Issued
July 02, 2014
OIG Component Office
Audit
Update CAIVRS’ selection rules to report delinquent Federal debt beyond the 3-year claim period or obtain an exemption from the Secretary of the Treasury to exempt FHA loans after 3 years.
Program Office
Housing
Questioned Costs
$0.00
Better Funds Use
$0.00
Publication Report Number
2014-KC-0002

Related Recommendations

Recomendation Status Date Issued Summary
2014-KC-0002-001-A Open July 02, 2014 Document the selection rules used for feeding data to CAIVRS to explain in detail the flow of information from HUD’s systems.
2014-KC-0002-001-B Open July 02, 2014

Update selection rules for CAIVRS to provide for complete reporting of all ineligible borrowers to put $9.5 million to better use.


Status

In 2020, HUD suspended reporting delinquencies and defaults to the Credit Alert Verification Reporting System (CAIVRS) because these debts are owed to the lender and are not delinquent Federal debt. A debt is not delinquent until a payment is past due to HUD for a deficiency judgment against the borrower in connection with an FHA claim. Rather than add the missing borrowers to CAIVRS, HUD determined it would remove default and claim data from the system and use it to exclusively identify borrowers with delinquent Federal debt. This will resolve the issue of incomplete reporting of delinquent federal debts greater than 3 years old. As of March 2024, the Office of Single Family Housing stated that it was working to have the system change request and updates to the web page finalized by the end of May 2024 and would then submit documentation of the actions implemented. The final action target date is June 28, 2024.


Analysis

To fully address this recommendation, HUD must provide evidence that it removed default and claim data from CAIVRS.

Implementation of this recommendation should result in HUD putting $9.5 million to better use.

2014-KC-0002-001-C Open July 02, 2014 Develop and implement system error checks to identify potential reporting issues.