Privacy Act of 1974; Notice of a Computer Matching Program

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-3918-N-13]

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

Veterans Affairs (VA).

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

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

recurring computer matching program with the Department of Veterans

Affairs (VA) to utilize a computer information system of HUD, the

Credit Alert Interactive Voice Response System (CAIVRS), with VA'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 VA 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 delinquent debt information from the Departments of

Agriculture, Education, Veterans Affairs, the Small Business

Administration and judgment lien data from the Department of Justice,

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. 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.

Authorized users do a prescreening of CAIVRS to determine a loan

applicant's credit status with the Federal Government. 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 40 days after

publication of this notice (October 1, 1997), 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.

DATE: Comments due by October 1, 1997.

ADDRESSES: Interested persons are invited to submit comments regarding

this notice to the Rule 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 FURTHER INFORMATION FROM RECIPIENT AGENCY 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

number.)

FOR FURTHER INFORMATION FROM SOURCE AGENCY CONTACT: Mark Gottsacker,

Debt Management Center, Department of Veterans Affairs, Bishop Henry

Whipple Federal Building, 1 Federal Drive, Room 156, Fort Snelling,

Minnesota 55111-4050, telephone number (612) 725-1843. (This is not a

toll-free number.)

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 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 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.

[[Page 44713]]

Objectives To Be Met by the Matching Program

The matching program will allow VA 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 VA 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.

The VA will provide HUD with debtor files contained in its system

of records entitled SS-VA26, Loan Guaranty Systems of Records. Central

Accounts Receivable On Line System is a subsidiary of SS-VA26. HUD is

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

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

information on individuals who have defaulted on their guaranteed

loans. The VA 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 VA's data.

Notice Procedures

HUD and the VA 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 VA 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 from HUD's systems

of records, HUD/Dept-2; SSN, claim number, program code, and indication

of indebtedness. Categories of 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) computer matching agreements 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 August 13, 1997.

Steven M. Yohai,

Chief Information Officer.

[FR Doc. 97-22276 Filed 8-21-97; 8:45 am]

BILLING CODE 4210-32-M