Summary
A 53-year-old government contractor and retired Air Force senior master sergeant was granted a security clearance despite concerns under Guideline F (Financial Considerations). The Statement of Reasons cited three specific financial issues: a mortgage foreclosure for $449,600, a second foreclosure for an unspecified amount, and a delinquent home equity loan totaling $75,896. These issues raised disqualifying conditions under Adjudicative Guidelines Paragraphs 19(a) and 19(c).
However, the judge found that the applicant successfully mitigated these concerns by demonstrating that the financial difficulties were largely due to circumstances beyond his control, specifically a medical condition and the housing market collapse. He also showed responsible behavior by attempting to sell properties and seeking loan modifications to address the debts.
Crucially, the applicant's current financial status was found to be good, with all debts being paid on time and a stable income. Based on these mitigating factors, which aligned with Adjudicative Guidelines Paragraphs 20(a), 20(b), 20(c), and 20(d), the applicant was granted eligibility for a security clearance.
Why the Applicant Prevailed
- The applicant's financial difficulties were largely due to circumstances beyond his control, including a medical condition and the housing market collapse.
- He demonstrated responsible behavior by attempting to sell properties and seeking loan modifications.
- The applicant's current financial status is good, with timely payments on all debts and a stable income.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(a)appliedThe Behavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to Recur
- AG ¶ 20(b)appliedThe Conditions That Resulted in the Financial Problem Were Largely Beyond the Person’s Control
- AG ¶ 20(c)appliedThe Person Has Received or Is Receiving Counseling for the Problem And/or There Are Clear Indications That the Problem Is Being Resolved or Is Under Control
- AG ¶ 20(d)appliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts
Key Rule Quoted
“The ultimate determination of whether to grant eligibility for a security clearance must be an overall commonsense judgment based upon careful consideration of the guidelines and the whole-person concept.”
Procedural Posture
- SOR issuedSep 24, 2014
- Answer filedOct 16, 2014
- Hearing heldOct 21, 2015
- Decision dateMar 4, 2016
Cite For
- Mitigation of Financial Considerations Under Guideline F
- Impact of Circumstances Beyond Control on Financial Obligations
- Whole-person Concept in Security Clearance Determinations