Privacy Act of 1974, New Routine Use Statement Amendment of System; Notice

DEPARTMENT OF VETERANS AFFAIRS

Privacy Act of 1974, New Routine Use Statement Amendment of

System; Notice

AGENCY: Department of Veterans Affairs.

ACTION: Notice; New routine use.

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SUMMARY: As required by the Privacy Act of 1974, 5 U.S.C. 552a(e),

Notice is hereby given that the Department of Veterans Affairs (VA) is

adding a new routine use statement to a system of VA records.

DATES: Interested persons are invited to submit written comments,

suggestions, or objections regarding the new routine use. All relevant

material received before July 31, 1997, will be considered. All written

comments received will be available for public inspection in the Office

of Regulations Management, Room 1158, 810 Vermont Avenue, NW,

Washington, DC 20420 between 8 a.m. and 4:30 p.m., Monday through

Friday, except holidays. If no public comment is received during the 30

day review period allowed for public comment, or unless otherwise

published in the Federal Register by VA, the routine use included

herein is effective July 31, 1997.

ADDRESSES: Written comments concerning the new routine use may be

mailed to the Director, Office of Regulations Management (02D),

Department of Veterans Affairs, 810 Vermont Avenue, NW, Room 1154,

Washington, DC 20420.

FOR FURTHER INFORMATION CONTACT:

Mrs. Judith Caden, Assistant Director Loan Policy (264), Loan Guaranty

Service, Veterans Benefits Administration, Department of Veterans

Affairs, Washington, DC 20420, (202) 273-7368.

SUPPLEMENTARY INFORMATION: In the course of administering the VA loan

guaranty program, VA occasionally must rely on the services of outside

parties to perform work which requires the use of data contained in VA

system of records 55 VA 26. For example, VA has recently worked with

the Federal Home Loan Mortgage Corporation (Freddie Mac) in developing

a VA specific mortgage scorecard for use by lenders. This scorecard

enabled VA and Freddie Mac to pursue a pilot program to see if VA home

loans could be processed using the automated underwriting features of

Freddie Mac's Loan Prospector program. In building the scorecard, it

was necessary for VA to provide Freddie Mac with access to information

concerning the loan characteristics of a number of recent VA loans.

Freddie Mac needed this information to conduct a statistical validation

of its Loan Prospector system to prove the model's ability to provide

risk assessments for VA loans.

In a situation like this, the entity being provided the information

is acting as a contractor performing an agency function, and is

required to agree that all employees involved in this matter would be

made aware that while performing work in connection with a VA system of

records, they would be considered VA employees for purposes of the

Privacy Act. As such, they would be subject to the criminal penalty

provisions imposed by subsection (i) of the Privacy Act (5 U.S.C.

552a(i)). The contractor must also agree not to use the data obtained

for any purpose other than that called for under the contract, to

safeguard the data against any further disclosure, and to return all of

the data to VA at the conclusion of the work.

VA has determined that release of information under circumstances

such as those described above is a necessary and proper use of

information in this system of records and that the specific routine use

proposed for the transfer of this information is appropriate.

An altered system of records report and a copy of the revised

system notice

[[Page 35546]]

have been sent to the House of Representatives Committee on Government

Reform and Oversight, the Senate Committee on Governmental Affairs, and

the Office of Management and Budget (OMB) as required by 5 U.S.C.

552a(r) and guidelines issued by OMB (59 FR 37906, 37916-18, July 25,

1994.)

The proposed routine use will be added to the system of records

entitled ``Loan Guaranty Home, Condominium and Manufactured Home Loan

Applicant Records, Specially Adapted Housing Applicant Records, and

Vendee Loan Applicant Records--VA'' (55VA26) as published at 40 FR

38095, August 26, 1975 and amended at 48 FR 499961, October 28, 1983;

51 FR 24781, July 8, 1986; 51 FR 28289, August 6, 1986; 52 FR 721,

January 8, 1987; 53 FR 49818, December 9, 1988; 56 FR 2064, January 18,

1991; 56 FR 15666, April 17, 1991; and 58 FR 50629, September 28, 1993.

Approved: June 10, 1997.

Jesse Brown,

Secretary of Veterans Affairs.

Notice of Amendment to System of Records

The system of records identified as 55 VA 26 ``Loan Guaranty Home,

Condominium and Manufactured Home Loan Applicant Records, Specially

Adapted Housing Applicant Records, and Vendee Loan Applicant Records-

VA'' published at 40 FR 38095, August 26, 1975 and amended at 48 FR

49961, October 28, 1983; 51 FR 24781, July 8, 1986; 51 FR 28289, August

6, 1986; 52 FR 721, January 8, 1987; 53 FR 59818, December 9, 1988; 56

FR 2064, January 18, 1991; 56 FR 15666, April 17, 1991; and 58 FR

50629, September 28, 1993, is revised to add a new routine use number

33 as follows:

55VA26

System Name:

Loan Guaranty Home, Condominium and Manufactured Home Loan

Applicant Records, Specially Adapted Housing Applicant Records, and

Vendee Loan Applicant Records--VA.

* * * * *

Routine Uses of Records Maintained in the System, Including Categories

of Users and the Purposes of Such Uses:

* * * * *

33. Relevant loan guaranty record information may be disclosed to

any individual, organization, or other entity with whom VA has a

contract or agreement under which that entity will perform services to

assist VA in the administration of the Loan Guaranty Program. The

information that may be disclosed under this routine use is limited to

that which is necessary to permit the contractor to perform the

services required under the contract or agreement.

* * * * *

[FR Doc. 97-17224 Filed 6-30-97; 8:45 am]

BILLING CODE 8320-01-M