Privacy Act of 1974; Computer Matching Program

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

Office of the Assistant Secretary for Administration

[Docket No. FR-3918-N-02]

Privacy Act of 1974; Computer Matching Program

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

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

Department of Education (ED).

-----------------------------------------------------------------------

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

computer matching program with the Department of Education (ED) to

utilize a computer information system of HUD, the Credit Alert

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

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 ED 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 ED and verify

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

[[Page 32020]] 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 ED 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 July 19, 1995

and unless comments are received which will result in a contrary

determination, will be accomplished 18 months from the beginning date.

FOR PRIVACY ACT INFORMATION CONTACT: Jeanette Smith, Departmental

privacy Act Officer, Department of Housing and Urban Development, 451

7th St., SW, room 4178, Washington, DC 20410, telephone number (202)

708-2374. [This is not a toll-free telephone number.]

FOR FURTHER INFORMATION FROM RECIPIENT AGENCY CONTACT: Joseph

McCloskey, Director, Control and Analysis Division, Department of

Housing and Urban Development, 451 7th Street SW., room 2246,

Washington, DC 20410, telephone number (202) 708-2438. [This is not a

toll-free number.]

FOR FURTHER INFORMATION FROM SOURCE AGENCY CONTACT: Adara Walton,

Branch Chief, Student Receivables Division, Department of Education,

Regional Office Building, 7th & D Streets SW, Washington, DC 20202,

telephone number (202) 708-4766. [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 report, in

duplicate, are being provided to the Committee on Governmental Affairs

of the United States Senate, the Committee on Government Reform and

Oversight of the House of Representatives, and the Office of Management

and Budget.

Authority

The matching program may be conducted pursuant to Pub. L. 100-503,

``The Computer Matching and Privacy Protection Act of 1988,'' as

amended, and Office of Management and Budget (OMB) Circulars A-129

(Managing Federal Credit Programs) and A-70 (Policies and Guidelines

for Federal Credit Programs). One of the purposes of all Executive

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

management practices for Federal credit programs. OMB Circulars A-129

and A-70 were 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 ED 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 ED 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.

ED will provide HUD with debtor files contained in its system of

records. HUD is maintaining ED's records only as a ministerial action

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

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

their guaranteed loans. ED 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 ED's data.

Notice Procedures

HUD and ED 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 ED 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,

ED Regional Office Code, Collection Agency Code, program code, and

indication of indebtedness. Categories of records include: Record 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 a 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, June 13, 1995.

Marilynn A. Davis,

Assistant Secretary for Administration.

[FR Doc. 95-14929 Filed 6-16-95; 8:45 am]

BILLING CODE 4210-01-M