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Profile picture for fearNoEvil

Would it be safe to think that a lender would check CAIVRS before granting underwriter approval?

We just received underwriter approval for an FHA mortgage on a home. We're just about to plunk down a chunk of money for appraisal and foundation inspeciton for the manufactured home. I have just read horror stories about people coming up on CAIVRS. Wouldn't the lender with experience providing FHA backed mortgages check CAIVRS before granting underwriter approval?

I guess I should have some confidence in the fact that this is our second application. Our first attempt was declined because our previous forclosure wasn't performed until May 2012, 28 months after our bankruptcy discharge. Our current approval is under the new FHA program that has shortened the period following foreclosure to one year. Underwriter approval for this mortgage was granted two days ago.

  • October 25 2013 - US
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Answers (12)

Profile picture for wooleeacre
~no... do they even know about it?  apparently not... I am ticked oh so ticked..
you are lucky.. We also were preaualified and approved to buy again.
We had a BK/vol. foreclosure in 2011..  I, just discovered, accidentally,  the" CAiVers" list while talking with the VA,
I called HUD/FHA ... what a nightmare.  Second penance to begin. After 2 years of waiting, my time has not yet begun on round 2.. 3 more to go, I have learned..
In your Bankruptcy counseling they should have told people about this.. It was never ever disclosed to us.

You are at THEIR (the corrupt government) mercy.. Here is how it works...

Your are eligible for a loan when:

1. mortgage co. files a claim on homeowner (me)

2. FHA (gets around to) puts you into the system; then pays the claim

3. 3 years from the date the claim is paid.

  • March 13 2014
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Profile picture for wetdawgs
good news!

Enjoy your new home!
  • January 18 2014
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Profile picture for sunnyview
Awesome news! Congratulations on your close. I am so glad that it was worth the wait and thanks for the update.
  • January 18 2014
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Profile picture for fearNoEvil
Final Post

WE CLOSED!

It took the FHA 37 business days to process our CAIVRS waiver but it finally came through last Wednesday, 15 Jan and we closed yesterday afternoon on the 17th.
  • January 18 2014
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Profile picture for fearNoEvil
kojak251, original poster here. We're at the same stopping point with HUD now. Waiting for HUD/FHA to approve our CAIVRS waiver in accordance with ppg 13, 14 of HUD Mortgagee Letter 2013-26 dated August 15, 2013 (see section "Request for Waiver or Resolution of CAIVRS Indicator"). Can google the document name and download the PDF. They have specific instructions concerning this and yet they "don't know what to do." Federal Bureaucracy at its finest! Our file was received by HUD in DC on 22 November 2013. Their own internal guidelines set 15 business days as the maximum time required (according to the HUD contact our underwriter talked with). All HUD is required to do is ensure our CAIVRS indicator is for nothing other than the previous forclosure covered by the "Back to Work" program. That should take all of 5 or 10 minutes and a call/email to the lender indicating either good to go or denied because of an additional CAIVRS indicator for something like student loans or taxes or something. What irritates me the most is that HUD has announced a program and has lenders accepting applications for it but is not "ready" to act. We also had a US Senator (staff) inquiry initiated last week. Nothing on that yet. Seller ready to bolt.
  • January 06 2014
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Profile picture for kojak251
I have gone through the whole process of getting an approved mortgage loan with the Back to Work Program with the condition that a CAIVRS claim be waived by HUD Washington DC.  It has been nearly a month and still they have not gotten the CAIVRS claim waived.  It is holding up closing for multiple families.  Currently trying to get a State Representative to help getting this CAIVRS claim waived.  HUD Washington DC has told my mortgage company that they don't even know what to do with this claim.  Has anyone gotten a CAIVRS claim waived with HUD Washington DC?  Please tell of your experiences if you have information to offer.  Thanks
  • January 06 2014
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Profile picture for fearNoEvil

Update here for the benefit for all. I finally got my broker to check with the lender about CAIVRS. The first response was that the lender's practice was to check it five days before closing. I told them that was insane and that I wasn't going to pay for the appraisal and foundation inspection until we had that done. They did it, we were on it and I told them to shut it all down unless they would provide assurance the CAIVRS issue would be waived. Two days later they said we were approved with a CAIVRS exception, the "Back to Work" supporting documentation justified it. We're now waiting for the appraisal and foundation inspection and hope to be closing in the next two weeks.

With so many people out there with FHA forclosures, defaulted student loans, tax matters, etc. I have no idea why a lender wouldn't do a CAIVRS inquiry the second the government backed mortgage application comes under his/her nose.

Waiting for the next catastrophc hope killing issue.

Mr. Yonce, yes we've gone in with everyone quite clear this is a manufactured home. That was a surprise to us even after we first went through it.

  • November 01 2013
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I sure hope the fact that it is a manufactured home has been made perfectly clear from the start. There's your your bear trap.
  • October 25 2013
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Good to hear you were so thorough.......... I doubt if CAIVRS will be a problem, but lender/processor only needs your soc sec # to run it so be sure they get it done today.
  • October 25 2013
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Profile picture for fearNoEvil

Wayne,

Short answer . . . yes.

When the FHA announced the "Back to Work" program I hit the 'net and looked for every bit of reliable information I could find and went to work assembling all the required documentation. Our lender took a full month from the FHA announcement to first consider if they wanted to support the program then prepare thier underwriters. Then they took a little over three weeks to consider/review our application before notifying us we had underwriter approval. I can only assume that they took the time to properly review the requirements and see that we have met them. I hope a CAIVRS check was one of the first if not the very first check they performed.

I don't mean to boast but our loan agent has commented several times that we are about the most cooperative and accurate clients they have ever worked with. I am employed in a profession that requires a very high degree of attention to detail and have a lot of experience in accomplishing tasks that must be accomplished on time and work correctly out of the box.

  • October 25 2013
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Interesting.... so you are saying that you have been approved under the new FHA "Back to Work" where a 20% or more reduction in income occurred that caused the BK 3 yrs ago? That the lender has reviewed all of the documentation from you that verified the dates and sources of income during that 6 month period prior to the BK? You have completed the required course to be eligible for the program?
  • October 25 2013
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  Tell your lender you are not comfortable paying for the appraisal or foundation inspection until the CAIVRS check is complete. Ask them if they have done it yet.
  Most lenders will pull it before the underwriter touches the file, but I also have heard the horror stories of the report being pulled late in the game.
  • October 25 2013
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