Privacy Act of 1974; Notice of a Computer Matching Program

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-3918-N-12]

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--HUD and Department of

Justice (DOJ).

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

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), Office of Management and Budget (OMB) Guidelines on

the Conduct of Matching Programs (54 FR 25818 (June 19, 1989)), and OMB

[[Page 27771]]

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 Justice (DOJ) to utilize a computer

information system of HUD, the Credit Alert Interactive Voice Response

System (CAIVRS), with DOJ's debtor files. 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

debts owed 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. Before granting a loan, a lending agency and/or

an 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 debtor files of the DOJ and

verify that the loan applicant is not in default on a Federal judgment

or delinquent on direct or guaranteed loans of participating Federal

programs. 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 other agency

direct of 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.

DATES: Effective Date: Computer matching is expected to begin 40 days

after publication of this notice unless comments are received which

will result in a contrary determination, or 40 days from the date a

computer matching agreement is signed, whichever is later.

COMMENTS DUE DATE: June 30, 1997.

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 Street, SW,

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

toll-free number.]

FOR FURTHER INFORMATION FROM SOURCE AGENCY CONTACT: Diane J. Miller,

Debt Collection Management, Department of Justice, 10th and

Constitution Avenue, NW, Washington, DC 20530. Telephone number (202)

514-5343. [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 are being

provided to the Committee on Government Reform and Oversight of the

House of Representatives, the Committee on Governmental Affairs of the

Senate, and the Office of Management and Budget.

Authority

The matching program will be conducted under the authority of 28

U.S.C. 2301(e) (section 3611 of the Federal Debt Collection Procedures

Act of 1990, Public Law 101-647), and Office of Management and Budget

(OMB) Circular A-129, 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.

Objectives To Be Met by the Matching Program

By identifying those individuals or corporations against whom the

DOJ has filed a judgment, the Federal Government can expand the

prescreening search of their loan applicants to further avoid lending

to applicants who are credit risks.

Records To Be Matched

HUD will utilize its system of records entitled, Accounting

Records, HUD/DEPT-2. 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 DOJ will provide HUD with its debtor files contained in its

system of records entitled, Debt Collection Management System, JUSTICE/

JMD-006. HUD is maintaining DOJ's records only as a ministerial action

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

DOJ's data contain information on individuals or corporations who have

defaulted on Federal judgments. The DOJ 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

DOJ's data.

Notice Procedures

HUD 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 DOJ

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, records of foreclosures, and Federal

judgment liens.

Categories of individuals include: Former mortgagers and purchasers

of HUD-owned properties, manufactured (mobile) home and home

improvement

[[Page 27772]]

loan debtors who are delinquent or in default on their loans,

rehabilitation loan debtors who are delinquent or in default on their

loans, and individuals or corporations against whom judgments have been

filed by DOJ.

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 40 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. The matching program will be in effect and continue for

18 months with an option to renew for 12 additional months unless one

of the parties to the agreement advises the other in writing to

terminate or modify the agreement.

Issued at Washington, DC, May 15, 1997.

Steven M. Yohai,

Chief Information Officer.

[FR Doc. 97-13234 Filed 5-20-97; 8:45 am]

BILLING CODE 4210-01-M