Chapter
2
Mortgage Credit Guidelines
Page 2-09
If
CAIVRS indicates that a loan made or insured by HUD on a borrower
is presently delinquent or has had a claim paid on their behalf,
the lender should call the HOC in their area. You will be asked
to furnish pertinent information so that the coordinator can check
HUDs Single Family Information System (SFIS) for the date
the claim was paid. The coordinator 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 whether the borrower(s) is currently eligible to apply
for another 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 paragraph 2-5C
of the HUD Handbook 4155.1, REV-4.
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.
We do 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
worksheet, and copies of the appropriate screens and verifications.
Please see: HUD
Handbook 4155.1, REV-4, CHG-1, Paragraph 2-3 and 2-5.
|