FHA cannot alter or delete CAIVRS information reported from other Federal agencies, such as the Department of Education, Veterans Affairs, etc.

If a delinquent Federal Debt is reflected in CAIVRS, the Mortgagee (Lender) must verify the validity and delinquency status of the debt by contacting the creditor agency using the contact phone number and debt reference number reflected in the Borrower’s CAIVRS report.

If the creditor agency confirms that the debt is valid and in delinquent status, then the Borrower is ineligible for an FHA-insured mortgage until the Borrower resolves the debt with the creditor agency in accordance with the Debt Collection Improvement Act.

The creditor agency that is owed the debt can verify that the debt has been resolved in accordance with the Debt Collection Improvement Act.  The Mortgagee must include documentation from the creditor agency to support the verification and resolution of the debt.  For debt reported through CAIVRS, the Mortgagee may obtain evidence of resolution by obtaining a clear CAIVRS report.

The Mortgagee may not deny a mortgage solely on the basis of CAIVRS information that the Mortgagee has not verified. If resolved either by determining that the information in CAIVRS is no longer valid or by resolving the delinquent status as stated above, the Mortgagee may continue to process the mortgage application.

For additional information see Handbook 4000.1 II.A.1.b.ii(A)(10) available at https://www.hud.gov/program_offices/administration/hudclips/handbooks/hsgh