Summary
A 49-year-old defense contractor and Navy veteran was granted a security clearance despite initial concerns under Guideline F, Financial Considerations. The Statement of Reasons cited two primary delinquent debts: a home equity loan of approximately $60,000 and a mortgage account with a past-due amount of about $45,000 on a total mortgage exceeding $152,000. These issues raised disqualifying conditions AG ¶ 19(a) and AG ¶ 19(c).
The judge determined that the applicant's financial difficulties largely stemmed from an 18-month period of unemployment, a circumstance beyond his control. The applicant demonstrated responsible behavior by actively seeking loan modifications, negotiating with creditors, and making a good-faith effort to resolve his debts, including hiring legal representation.
These actions satisfied mitigating conditions AG ¶ 20(b), AG ¶ 20(c), and AG ¶ 20(d). Ultimately, the judge found that the applicant had successfully mitigated the financial concerns, leading to the granting of his security clearance.
Why the Applicant Prevailed
- The applicant demonstrated responsible behavior in seeking loan modifications and negotiating with creditors.
- The applicant's financial difficulties were largely due to circumstances beyond his control, specifically unemployment.
- The applicant made a good-faith effort to resolve his debts, including hiring legal representation.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(b)appliedConditions That Resulted in the Financial Problem Were Largely Beyond the Person's Control
- AG ¶ 20(c)rejectedThe Person Has Received or Is Receiving Counseling for the ProblemThe applicant failed to present evidence of financial counseling.
- 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 guideline and the whole-person concept.”
Procedural Posture
- SOR issuedMar 1, 2013
- Answer filedMar 20, 2013Applicant elected to have the case decided on the written record.
- Hearing heldJul 30, 2013Decision issued denying clearance, later remanded.
- Decision dateOct 30, 2013Final decision granting clearance.
Cite For
- Mitigation of Financial Concerns Under Guideline F Due to Unemployment
- Good-faith Efforts to Resolve Debts
- Consideration of the Whole-person Concept in Security Clearance Decisions