Summary
A 46-year-old former U.S. Navy service member was denied a security clearance under Guideline F, Financial Considerations, due to approximately $137,000 in delinquent mortgage debt. The Statement of Reasons cited two specific allegations: approximately $67,000 in delinquent debt on one mortgage loan and $70,300 on another.
The applicant admitted to these significant debts. Disqualifying conditions related to financial irresponsibility and an inability to meet financial obligations were raised. While mitigating conditions acknowledging the debt was not recent, the circumstances were largely beyond the applicant's control, and the applicant had initiated a good-faith effort to resolve the problem were considered, they were ultimately insufficient.
The denial was based on the applicant's failure to monitor her mortgage payments while deployed, which resulted in foreclosure and unresolved financial issues. The judge determined that the applicant did not act responsibly in managing her financial obligations and lacked a clear plan for resolving her debts or seeking financial counseling.
Why the Applicant Was Denied
- The applicant admitted to significant delinquent debt totaling approximately $137,000 on two mortgage loans.
- The applicant failed to monitor her mortgage payments while deployed, leading to foreclosure and unresolved financial issues.
- The applicant did not demonstrate a clear plan to resolve her debts or seek financial counseling.
Conditions Referenced
- FC DC AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- FC DC AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- FC MC AG ¶ 20(a)rejectedThe 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
- FC MC AG ¶ 20(b)rejectedThe Conditions That Resulted in the Behavior Were Largely Beyond the Person’s Control and the Individual Acted Responsibly Under the Circumstances
- FC MC AG ¶ 20(d)appliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsThe applicant made some payments and contacted banks to address her debts.
Key Rule Quoted
“Any reasonable doubt about whether an applicant should be allowed access to sensitive information must be resolved in favor of protecting such information.”
Procedural Posture
- SOR issuedDec 8, 2014
- Answer filed—
- Hearing heldNov 13, 2015At applicant's request, originally scheduled for September 22, 2015.
- Decision dateJan 28, 2016
Cite For
- Denial of Security Clearance Due to Unresolved Financial Obligations Under Guideline F
- Failure to Monitor Financial Responsibilities While Deployed as a Factor in Security Clearance Decisions
- Lack of a Clear Plan for Debt Resolution Impacting Eligibility for Security Clearance.