Privacy Act of 1974; Notice of a Computer Matching Program

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. N-95-3890; FR 3882-N-01]

Privacy Act of 1974; Notice of a Computer Matching Program

AGENCY: Office of the Secretary, HUD.

ACTION: Notice of a Computer Matching Program--HUD and Department of

Veterans Affairs (DVA).

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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

(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 Veterans Affairs (DVA)

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

Interactive Voice Response System (CAIVRS), with DVA'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 DVA 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 from the Departments of Veterans Affairs,

Education, Agriculture, and the Small Business Administration, 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 if 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. 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, 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, provided no

comments are received which would result in a contrary determination.

It will be accomplished 18 months from the beginning date.

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 7th 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 CONTACT: Jeanette Smith, Departmental

Privacy Act Officer, 451 7th Street SW., Room 4178, Washington, DC

20410, telephone number (202) 708-2374. (This is not a toll-free

number).

FOR FURTHER INFORMATION RECIPIENT AGENCY CONTACT: Mary C. Felton,

Control and Analysis Division, Department of Housing and Urban

Development, 451 7th Street SW., Washington, DC 20410, telephone number

(202) 708-4256.

FOR FURTHER INFORMATION FROM SOURCE AGENCY CONTACT: Dan Osendorf,

Director, VA Debt Management Center, Bishop Henry Whipple Federal

Building, One Federal Drive, Ft. Snelling, MN 55111, telephone number

(612) 725-1841. [These are not toll-free numbers.]

Reporting

In accordance with Pub. L. 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 [[Page 10103]] 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 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 DVA 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 DVA 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 coborrowers 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 DVA will provide HUD with debtor files from two systems of

records: 58VA 21/22/28, Compensation, Pension, Education and

Rehabilitation Records-VA; and 55VA26, Loan Guaranty Home, Condominium

and Manufactured Home Loan Applicant Records, specially Adapted Housing

Applicant Records, and Vendee Loan Applicant Records-VA. HUD is

maintaining DVA's records only as a ministerial action on behalf of

DVA, not as a part of HUD's HUD/DEPT-2 system of records. DVA's data

contain information on individuals who have defaulted on their

guaranteed loans. The DVA 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 DVA's data.

Notice Procedures

As a condition of matching, HUD has made modifications to the loan

application forms for the participating programs to expand the Privacy

Act statements on the individual application forms in the notation

``that the information provided by the applicant can be used for

computer matching purposes and to collect debts owed to the Federal

government.'' Any deficiencies as to direct notice procedures to the

individual for the matching program are cured by the indirect or

constructive notice that will be afforded to the subjects when the

public notice of the proposed match is published by HUD in the Federal

Register as required by subsection (e)(12) of the Privacy Act.

Categories of Records/Individuals Involved

The debtor records include these data elements: SSN, claim number,

program code, and indication of indebtedness. Categories or 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) 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 could result in a contrary determination.

Issued at Washington, DC February 6, 1995.

Marilynn A. Davis,

Assistant Secretary for Administration.

[FR Doc. 95-4361 Filed 2-22-95; 8:45 am]

BILLING CODE 4210-32