What system is automatically run by GUS to check borrowers?

The correct response indicates that the system automatically run by GUS (Government Underwriting System) to check borrowers is CAVRS (Credit Alert Verification Reporting System). CAVRS is specifically designed to identify borrowers who have defaulted on federal loans, pending bankruptcies, or other issues that might affect their eligibility for certain government-backed loans, including USDA loans.

GUS integrates with CAVRS to ensure that borrowers meet the necessary criteria and that their credit history aligns with USDA Rural Development guidelines. This system helps streamline the underwriting process by quickly identifying potential risks associated with a borrower's financial background.

The other options pertain to different aspects of housing and loan programs. FHA refers to the Federal Housing Administration, which provides mortgage insurance to lenders and is distinct from the USDA's programs. VA stands for the Department of Veterans Affairs, which offers support for veterans seeking loans and again operates under a separate set of guidelines. HUD, or the Department of Housing and Urban Development, oversees other housing initiatives but is not directly involved with the underwriting checks performed by GUS. Understanding this context highlights the specificity and functionality of the CAVRS system in relation to USDA Rural Housing loans.