Summary
A 60-year-old defense contractor and retired U.S. Air Force Lieutenant Colonel was granted a security clearance despite concerns under Guideline F (Financial Considerations). The applicant faced allegations of approximately $174,927 in delinquent mortgage-related debts across multiple properties. These included past-due payments on his primary residence, two investment properties (Prop A and Prop B), a home equity loan for Prop B, and unpaid mortgage payments on an investment condominium (Prop C). Additionally, he had unpaid homeowners’ association dues for a condominium (Prop D) intended for his own use.
The judge found that the applicant's financial difficulties were largely beyond his control, primarily stemming from a series of hurricanes that negatively impacted the real estate market. The applicant demonstrated good judgment and responsible conduct by actively working to resolve his financial obligations.
Specifically, the mortgage for his primary residence was modified, and he is now in good standing with that obligation. Given these mitigating factors, and the applicant's good-faith efforts to resolve his debts, the security clearance was granted.
Why the Applicant Prevailed
- The applicant demonstrated good judgment and responsible conduct by actively working to resolve his financial obligations.
- The financial difficulties were largely due to uncontrollable circumstances, including natural disasters that impacted the real estate market.
- The applicant's mortgage for his primary residence was modified, and he is back in good standing with that obligation.
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 and Does Not Cast Doubt on the Individual's Current Reliability, Trustworthiness, or Good Judgment
- AG ¶ 20(b)appliedThe Conditions That Resulted in the Financial Problem Were Largely Beyond the Person's 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
“A security clearance decision is intended to resolve whether it is clearly consistent with the national interest for an applicant to either receive or continue to have access to classified information.”
Procedural Posture
- SOR issuedMar 18, 2010
- Answer filed—
- Hearing heldOct 13, 2010
- Decision dateMar 9, 2011
Cite For
- Mitigating Conditions for Financial Difficulties Under Guideline F
- Impact of Uncontrollable Circumstances on Financial Obligations
- Good-faith Efforts to Resolve Debts as a Mitigating Factor