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Report Fraud, Waste and Abuse
  • Recommendation Number: 2014-KC-0002-001-B
  • Status: Open
  • Date Issued: July 02, 2014
  • Priority

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 payment is overdue to HUD for a deficiency judgment against the borrower in connection with an FHA claim.  Rather than add the missing borrowers to CAIVRS, the Office of Single Family Housing directed HUD’s National Servicing Center to cease including borrower creditworthiness information in CAIVRS and to solely use the system to report deficiency judgments until the delinquent debt is resolved.  HUD provided the Interface Control Document showing what data is sent to CAIVRS related to deficiency judgments.  As of July 2025, OIG is seeking clarification on HUD's implementation and closure of the recommendation because it is not clear whether all deficiency judgments are now being reported in CAIVRS until resolved.  HUD OIG disagrees with the closure of this recommendation until HUD provides evidence that the system updates have been implemented and that they provide complete reporting of all ineligible borrowers.
 

Analysis

"To fully address this recommendation, HUD must provide evidence that all deficiency judgments are reported in CAIVRS until resolved.

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

Publication Report

2014-KC-0002 | July 01, 2014

The Data in CAIVRS Did Not Agree with the Data in FHA’s Default and Claims System

The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General audited HUD’s Credit Alert Verification Reporting System (CAIVRS) to determine whether the default and claims data in CAIVRS agreed with the data in the Federal… more