if denied fha loan by one bank due to their CAIVRS policy, can another bank approve?

Asked by Tough Going, Alden, NY Tue Oct 6, 2009

One lender denied my loan due to our name on CAIVRS, even though we are past the three year window. FHA says we are eligible, but this bank wnats a clear CAIVRS. I found a lender who will approve us using FHA connection, but the previous lender, after a request to have FHA case # transferred, put in the FHA Case a note denied due to the ineligibility to get FHA loan,which is only their policy. New lender now concerned, even though they knew up front of CAIVRS issue, cause previous lender does not state exact reason for denial.

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X, , Kirkland, WA
Tue Oct 6, 2009
Yes, each lender has different underwriting standards. FHA has their own guidelines and then each lender has their own overlays, so it's going to depend on the specific lender. The old lender should have no problem transferring the case number since they denied it.

The biggest question is, why was it denied?
1 vote
Would you underwrite an FHA with an unclear CAIVRS, if you got a paid in full letter from the Dept. of Ed on a student loan?
Flag Tue Mar 27, 2012
Tough Going, Home Buyer, Alden, NY
Thu Oct 8, 2009
Hi, My mortgage processor finally pulled a cleared CAIVRS, but there is a note that states: Case Warning: Borrower(s) have CAIVRS alert and/or mortgage credit sanction. My CAIVRS recently cleared after the 3 year waiting period, so we should be good to go, but she does not know why that note appears. Any ideas?
0 votes
Tough Going, Home Buyer, Alden, NY
Wed Oct 7, 2009
The original lender said I was denied due to not having a cleared CAIVRS. FHA does not require a cleared CAIVRS as long as I am past the 3 year date of the paid claim, which I am. But, per the lender policy, even though it shows I am eligible on FHA Connection, they want a cleared CAIVRS. I found a bank who approved me for the loan, using the FHA Connection. I did have the FHA case # transferred, but the day they transferred it, they put in the denial because of inelligible for the program requested due to past credit history, which worries the new lender now cause that is a note on the system.

When we call the old lender, they say if I had a clear CAIVRS, I would be approved by them. It is just how they worded it in the note.

I will know today if the new lender, who I have a commitment letter and am totally approved otherwise and am supposed to close this week, will still approve me. They did say, if that note was not on there, I would be approved. Basically, in laymans terms, the note is stating I was denied due to unclear CAIVRS, and if it was worded that way, I would be fine. I will know today, hopefully they give me the go ahead.
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