Privacy Act of 1974; Computer Matching Program

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-3918-N-10]

Privacy Act of 1974; Computer Matching Program

AGENCY: Department of Housing and Urban Development (HUD).

ACTION: Notice of a computer matching program--HUD and United States

Department of Agriculture (USDA).

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

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, (P.L. 100-503), and the Office of Management and Budget (OMB)

Guidelines on the Conduct of Marching Programs (54 FR 25818) (June 19,

1989)), and OMB Bulletins 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 U.S. Department of

Agriculture (USDA) to utilize a computer information system of HUD, the

Credit Alert Interactive Voice Response System (CAIVRS), with USDA's

debtor files. In addition to HUD data, the CAIVRS data base includes

delinquent debt information from the Department of Education,

Department of Veteran Affairs, the Small Business Administration and

judgment lien data from the Department of Justice. 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 issued by the Federal Government for HUD or

USDA 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 of the USDA and

verify that the loan applicant is not 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 is a requirement for the SSN of the loan applicant. The system

then reports audibly whether the SSN is related to the delinquent or

defaulted Federal obligations for HUD or USDA direct or guaranteed

loans. As a result of the information produced by this match, the

authorized users may not deny, terminate, or make a final decision on

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.

In accordance with 5 U.S.C. 552a(o)(2), copies of the matching

agreement are being sent by HUD to both houses of Congress. The match

is expected to commence not sooner than 40 days after the agreement by

the parties is submitted to Congress and not sooner than 30 days from

the publication of this notice or 40 days from the date this notice was

approved, whichever is later. The match may be extended by the involved

Data Integrity Boards for a twelve-month period provided all agencies

involved certify to their Data Integrity Boards, with three months of

the termination date of the original match, that the matching programs

will be conducted without change and have been conducted in compliance

with the original matching agreement. The match will not continue past

the date the legislative authority to obtain this information expires.

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 FURTHER INFORMATION FROM RECIPIENT

AGENCY CONTACT: Jeanette Smith, Departmental Privacy Act Officer,

Department of Housing and Urban Development, 451 7th Street, SW, Room

4176, Washington, DC 20410, telephone number (202) 708-2374. (This is

not a toll-free telephone number).

FOR FURTHER INFORMATION FROM SOURCE AGENCY CONTACT: Joyce A

Baumgartner, Fiscal Policy Division, U.S. Department of Agriculture,

14th and Independence Avenue, SW, Washington, DC 20250, telephone

number (202) 720-4958. (This is not a toll-free number.)

Reporting of Matching Program

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 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 Public Law 100-

503, ``The Computer Matching and Privacy Protection Act of 1988,'' as

amended, and Office of Management and Budget (OMB) Circular A-129

(Revised January 1993), 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. OMB Circular A-129 was 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 14161]]

Objectives To Be Met by the Matching Program

The matching program will allow USDA 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 USDA 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 insured or

guaranteed home mortgage loans; or individuals who have defaulted on

Section 312 rehabilitation loans; or individual 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 USDA will provide HUD with debtor files

contained in its system of records entitled, Applicant/Borrower or

Grantee File (USDA/FmHA-1). HUD is maintaining USDA's records only as a

ministerial action on behalf of USDA, not as part of HUD's HUD/DEPT-2

system of records. USDA's data contain information on individuals who

have defaulted on their guaranteed loans. The USDA 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 USDA's data.

Notice Procedures

HUD and the USDA 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 USDA 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, 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 is expected to begin 40 days after the date copies of the

signed (by both Data Integrity Boards) computer matching agreement are

sent to both Houses of Congress or 30 days from the date this Notice is

published in the Federal Register, or 40 days from the date this notice

is approved, whichever is later, providing no comments are received

which would result in a contrary determination.

Issued at Washington, DC, March 13, 1997.

Steven M. Yohai,

Chief Information Officer.

[FR Doc. 97-7427 Filed 3-24-97; 8:45 am]

BILLING CODE 4210-01-M