# Privacy Act of 1974, New Routine Use Statement Amendment of System; Notice > Briefs, arguments, decisions, and more. URL: https://www.frixlaw.com/law-library/documents/fr%3A97-17224 ## Record - **Collection:** Federal Register - **Document type:** Notice - **Published:** July 1, 1997 - **Citation:** 62 FR 35545 ## Text 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. ----------------------------------------------------------------------- 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 --- Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/fr%3A97-17224. Public record. Not legal advice.