Change Date

September 15, 2004, Change 4

·   This section has been changed to create subsection lettering.

·   Subsection a has been changed to add a reference to “unmarried” surviving spouses. This section is further changed to add information pertaining to use of HUD’s on-line CAIVRS.

·   Subsections a and d have been changed to provide links and URL to the HUD operated on-line CAIVRS system. Subsection d was further changed to remove “Lender” to the beginning of the sentence instead of being within a parenthetical.

·   Subsection c has been changed to add the Department of Justice (DOJ).  Judgments owed to DOJ are reported by CAIVRS.

·   Subsection e has been changed as follows:

-   Step 4 has been changed to delete information regarding erroneous CAIVRS information; erroneous information must be provided to the number listed by CAIVRS.

-   Step 4 has been changed noting that only Small Business Administration, VA and Education have alternate contact points for a CAIVRS hit.

a. The Search Requirement

There are 2 separate procedures the lender must follow.  Both should be initiated immediately upon receipt of a loan application to avoid delays in closing the loan.

(1)  Ask the veteran and any veteran co-obligors (including spouse if a veteran) if he or she

-   is receiving VA disability benefits

-   would be entitled to receive VA disability benefits but for the receipt of retired pay

-   has received VA disability benefits in the past, or

-   is an unmarried surviving spouse of a veteran who died on active duty or as a result of a service-connected disability.

If the veteran falls under 1 of the above categories, follow the procedures discussed under “Debt Related to VA Benefits,” subsection b.