Summary
A 52-year-old principal subsystems engineer was granted a security clearance despite concerns under Guideline F (Financial Considerations). The primary issue was a $57,809 residual debt from a second mortgage on an investment property purchased in 2006. This debt arose after the applicant executed a deed in lieu of foreclosure, triggering disqualifying conditions under Adjudicative Guidelines (AG) ¶ 19(a) and AG ¶ 19(c).
The judge determined that the applicant's financial difficulties were largely due to market conditions beyond his control, specifically the collapse of the real estate market. The applicant demonstrated responsible behavior by taking extensive steps to resolve the debt, including consulting with multiple experts and ultimately settling with the lender.
Mitigating conditions AG ¶ 20(a), AG ¶ 20(b), AG ¶ 20(c), AG ¶ 20(d), and AG ¶ 20(e) were applied. The applicant maintained a strong employment history and showed a commitment to financial responsibility, supported by his current financial status and character references. Based on these factors, the security clearance was granted.
Why the Applicant Prevailed
- The applicant's financial issues were largely due to circumstances beyond his control, specifically the collapse of the real estate market.
- The applicant took extensive steps to mitigate the debt, including consulting with multiple experts and ultimately settling the debt with the lender.
- The applicant maintained a strong employment history and demonstrated a commitment to financial responsibility, as evidenced by his current financial status and character references.
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
- AG ¶ 20(e)appliedThe Individual Has a Reasonable Basis to Dispute the Legitimacy of the Past-due Debt
Key Rule Quoted
“The protection of the national security is the paramount consideration.”
Procedural Posture
- SOR issuedSep 25, 2009
- Answer filedOct 1, 2009
- Hearing heldJan 27, 2010
- Decision dateMar 5, 2010
Cite For
- Mitigation of Financial Issues Under Guideline F Due to Market Conditions
- Importance of Demonstrating Responsible Behavior in Resolving Debts
- Consideration of the Whole-person Concept in Security Clearance Decisions