Privacy Act of 1974; Notice of a Computer Matching Program

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

Office of the Assistant Secretary for Administration

[Docket No. N-94-3777; FR-3729-N-01]

Privacy Act of 1974; Notice of a Computer Matching Program

AGENCY: Office of the Assistant Secretary for Administration, (HUD).

ACTION: Notice of a Computer Matching Program--HUD and United States

Department of Agriculture (USDA).

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SUMMARY: In accordance with the Privacy Act of 1974 (5 U.S.C. 552a), as

amended by the Computer Matching and Privacy Protection Act of 1988, as

amended, (Pub. L. 100-503), and the Office of Management and Budget

(OMB) Guidelines on the Conduct of Matching Programs (54 FR 25818 (June

19, 1989)), and OMB Bulletin 89-22, ``Instructions on Reporting

Computer Matching Programs to the Office of Management and Budget

(OMB), Congress and the Public,'' the Department of Housing and Urban

Development (HUD) is issuing a public notice of its intent to conduct a

recurring computer matching program with the U.S. Department of

Agriculture (USDA) to utilize a computer information system of HUD, the

Credit Alert Interactive Voice Response System (CAIVRS), with USDA's

debtor files. In addition to HUD Data, the CAIVRS data base included

delinquent debt information from the Department of Education,

Department of Veterans Affairs, and the Small Business Administration.

This match will allow prescreening of applicants for loans or loans

guaranteed by the Federal Government to ascertain if the applicant is

delinquent in paying a debt owed to or insured by the Federal

Government for HUD or USDA direct or guaranteed loans.

Before granting a loan, the lending agency and/or the authorized

lending institution will be able to interrogate the CAIVRS debtor file

which contains the Social Security Numbers (SSNs) of HUD's delinquent

debtors and defaulters and defaulted debtor records of the USDA and

verify that the loan applicant is not in default or delinquent on

direct or guaranteed loans of participating Federal programs of either

agency. Authorized users place a telephone call to the system. The

system provides a recorded message followed by a series of

instructions, one of which is a requirement for the SSN of the loan

applicant. The system then reports audibly whether the SSN is related

to delinquent or defaulted Federal obligations for HUD or USDA direct

or guaranteed loans. As a result of the information produced by this

match, the authorized users may not deny, terminate, or make a final

decision of any loan assistance to an applicant or take other adverse

action against such applicant, until an officer or employee of such

agency has independently verified such information.

In accordance with 5 U.S.C. 552a(o)(2), copies of the matching

agreement are being sent by HUD to both houses of Congress. The match

is expected to commence not sooner than 40 days after the agreement by

the parties is submitted to Congress and not sooner than 30 days from

the date of publication of this notice or 40 days from the date this

notice was approved, whichever is later. The match may be extended by

the involved Data Integrity Boards for a twelve-month period provided

all agencies involved certify to their Data Integrity Boards, within

three months of the termination date of the original match, that the

matching programs will be conducted without change and have been

conducted in compliance with the original matching agreement. The match

will not continue past the date the legislative authority to obtain

this information expires.

ADDRESSES: Interested persons are invited to submit comments regarding

this notice to the Rules Docket Clerk, Office of General Counsel, room

10276, Department of Housing and Urban Development, 451 Seventh Street,

SW., Washington, DC 20410. Communications should refer to the above

docket number and title. A copy of each communication submitted will be

available for public inspection and copying between 7:30 a.m. and 5:30

p.m. weekdays at the above address.

FOR PRIVACY ACT INFORMATION AND FURTHER INFORMATION FROM RECIPIENT

AGENCY CONTACT:

Jeanette Smith, Departmental Privacy Act Officer, Department of

Housing and Urban Development, 451 7th Street, SW., room 4176,

Washington, DC 20410, telephone number (202) 708-2374. [This is not a

toll-free telephone number.]

FOR FURTHER INFORMATION FROM SOURCE AGENCY CONTACT: Reynaldo Gonzalez,

Debt/Credit Management Coordinator, U.S. Department of Agriculture,

14th and Independence Avenue, SW., Washington, DC 20250, telephone

number (202) 720-1168. [This is not a toll-free number.]

REPORTING OF MATCHING PROGRAM: In accordance with Public Law 100-503,

the Computer Matching and Privacy Protection Act of 1988, as amended,

and Office of Management and Budget Bulletin 89-22, ``Instructions on

Reporting Computer Matching Programs to the Office of Management and

Budget (OMB), Congress and the Public;'' copies of this Notice and

report, in duplicate, are being provided to the Committee on Government

Operations of the House of Representatives, the Committee on

Governmental Affairs of the Senate, and the Office of Management and

Budget.

Authority: The matching program may be conducted pursuant to

Public Law 100-503, ``The Computer Matching and Privacy Protection

Act of 1988,'' as amended, and Office of Management and Budget (OMB)

Circular A-129 (Revised January 1993), Policies for Federal Credit

Programs and Non-Tax Receivables. One of the purposes of all

Executive departments and agencies--including HUD--is to implement

efficient management practices for Federal credit programs. OMB

Circular A-129 was issued under the authority of the Budget and

Accounting Act of 1921, as amended; the Budget and Accounting Act of

1950, as amended; the Debt Collection Act of 1982, as amended; and,

the Deficit Reduction Act of 1984, as amended.

OBJECTIVES TO BE MET BY THe MATCHING PROGRAM: The matching program will

allow USDA access to a system which permits prescreening of applicants

for loans or loans guaranteed by the Federal Government to ascertain if

the applicant is delinquent in paying a debt owed to or insured by the

Government. In addition, HUD will be provided access to USDA debtor

data for prescreening purposes.

RECORDS TO BE MATCHED: HUD will utilize its system of records entitled

HUD/DEPT-2, Accounting Records. The debtor files for HUD programs

involved are included in this system of records. HUD's debtor files

contain information on borrowers and co-borrowers who are currently in

default (at least 90 days delinquent on their loans); or who have any

outstanding claims paid during the last three years on Title II insured

or guaranteed home mortgage loans; or individuals who have defaulted on

Section 312 rehabilitation loans; or individuals who have had a claim

paid in the last three years on a Title I loan. For the CAIVRS match,

HUD/DEPT-2, System of Records, receives its program inputs form HUD/

DEPT-28, Property Improvement and Manufactured (Mobile) Home Loans--

Default; HUD/DEPT-32, Delinquent/Default/Assigned Temporary Mortgage

Assistance Payments (TMAP) Program; and HUD/CPD-1, Rehabilitation

Loans-Delinquent/Default.

The USDA will provide HUD with debtor files contained in its system

of records entitled, Applicant/Borrower or Grantee File (USDA/FNHA-1).

HUD is maintaining USDA's records only as a ministerial action on

behalf of USDA, not as part of HUD's HUD/DEPT-2 system of records.

USDA's data contain information on individuals who have defaulted on

their guaranteed loans. The USDA will retain ownership and

responsibility for their system of records that they place with HUD.

HUD serves only as a record location and routine use recipient for

USDA's data.

NOTICE PROCEDURES: HUD and the USDA will notify individuals at the time

of application (ensuring that routine use appears on the application

form) for guaranteed or direct loans that their records will be matched

to determine whether they are delinquent or in default on a Federal

debt. HUD and the USDA will also publish notices concerning routine use

disclosures in the Federal Register to inform individuals that a

computer match may be performed to determine a loan applicant's credit

status with the Federal Government.

CATEGORIES OF RECORDS/INDIVIDUALS INVOLVED: The debtor records include

these data elements: SSN, claim number, program code, and indication of

indebtedness. Categories of records include: records of claims and

defaults, repayment agreements, credit reports, financial statements,

and records of foreclosures. Categories of individuals include: former

mortgagors and purchasers of HUD-owned properties, manufactured

(mobile) home and home improvement loan debtors who are delinquent or

in default on their loans, and rehabilitation loan debtors who are

delinquent or in default on their loans.

PERIOD OF THE MATCH: Matching is expected to begin 40 days after the

date copies of the signed (by both Data Integrity Boards) computer

matching agreement are sent to both Houses of Congress or 30 days from

the date this Notice is published in the Federal Register or 40 days

from the date this notice is approved, whichever is later, providing no

comments are received which would result in a contrary determination.

Issued at Washington, DC May 3, 1994.

Marilynn A. Davis,

Assistant Secretary for Administration.

[FR Doc. 94-12637 Filed 5-23-94; 8:45 am]

BILLING CODE 4210-01-M