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-94-3814; FR3764-N-01]

Privacy Act of 1974; Notice of a Computer Matching Program

AGENCY: Department of Housing and Urban Development (HUD).

ACTION: Notice of a Computer Matching Program between HUD and the Small

Business Administration (SBA).

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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, (Public Law 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

computer matching program with the Small Business Administration (SBA)

to utilize a computer information system of HUD, the Credit Alert

Interactive Voice Response System (CAIVRS), with SBA's debtor files. In

addition to HUD data, the CAIVRS data base now includes delinquent debt

information from the Departments of Agriculture, Education and 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 SBA 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 SBA 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 SBA 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.

EFFECTIVE DATE: Computer matching is expected to begin at least 40 days

from the date this computer matching notice is published, providing no

comments are received which would result in a contrary determination.

It will be accomplished 18 months from the beginning date.

Comments Due Date: October 13, 1994.

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 FOR FURTHER INFORMATION FROM RECIPIENT

AGENCY CONTACT: Jeanette Smith, Departmental Privacy Act Officer,

Department of Housing and Urban Development, 451 7th St., SW, Room

4176, Washington, DC 20410, Telephone Number (202) 708-2374. [This is

not a toll-free number.]

FOR FURTHER INFORMATION FROM SOURCE AGENCY CONTACT: Walter Intlekofer,

Chief, Operations Assistance Branch, Office of Portfolio Management,

Small Business Administration, 409 Third Street, S.W., Washington, DC

20416, Telephone Number (202) 205-6481. [This is not a toll-free

number.]

Reporting: 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 a 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 SBA 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

SBA 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 from 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 SBA will provide HUD with debtor files contained in its system

of records entitled, Loan Case File (SBA 075). HUD is maintaining SBA's

records only as a ministerial action on behalf of SBA, not as a part of

HUD's HUD/DEPT-2 system of records. SBA's data contain information on

individuals who have defaulted on their direct loans. The SBA will

retain ownership and responsibility for their systems of records that

they place with HUD. HUD serves only as a record location and routine

use recipient for SBA's data.

Notice Procedures: HUD and the SBA 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 SBA have published 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 indebteness. 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 will begin at least 40 days from the

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

matching agreement are sent to both Houses of Congress or at least 30

days from the date this Notice is published in the Federal Register,

whichever is later, providing no comments are received which would

result in a contrary determination.

Issued at Washington, DC, September 7, 1994.

Marilynn A. Davis,

Assistant Secretary for Administration.

[FR Doc. 94-22635 Filed 9-12-94; 8:45 am]

BILLING CODE 4210-01-M