Privacy Act of 1974; Notice of a Computer Matching Program

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-3918-N-15]

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 between HUD and the

Department of Education.

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SUMMARY: In accordance with the Privacy Act of 1974 (5 U.S.C. 552a), 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

computer matching program with the Department of Education to utilize a

computer information system of HUD, the Credit Alert Interactive Voice

Response System (CAIVRS), with the Department of Education'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 the Department of Education for 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 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.

DATES: Effective date: Computer matching is expected to begin February

4, 1998 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 by: February 4, 1998.

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 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: Adara Walton,

Branch Chief, Student Receivables Division, Department of Education,

Regional Office Building, 7th & D Streets, SW, Washington, DC 20202,

telephone number (202) 708-4766. [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.

[[Page 248]]

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.

Objectives To Be Met by the Matching Program

The matching program will allow the Department of Education 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 the Department of Education's

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 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 Department of Education will provide HUD with debtor files

contained in its system of records (Title IV Program File, 18-40-0024).

HUD is maintaining the Department of Education's records only as a

ministerial action on behalf of the Department of Education, not as

part of HUD's HUD/DEPT-2 system of records. The Department of

Education's data contain information on individuals who have defaulted

on their guaranteed loans. The Department of Education 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 the Department of Education's data.

Notice Procedures

HUD and the Department of Education have separate notification

procedures. When the Federal credit being sought is a HUD/FHA mortgage,

HUD will notify individuals at the time of application (ensuring that

routine use appears on the application form). The Department of

Education will notify individuals at the time of application for

Federal student loan programs that their records will be matched to

determine whether they are delinquent or in default on a Federal debt.

HUD and the Department of Education 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,

the Department of Education's Regional Office Code, Collection Agency

Code, 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 agreement are

sent to both Houses of Congress or at least 30 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.

Issued at Washington, DC, December 29, 1997.

Leslie H. Graham, Jr.,

Deputy Director, Office of Information Technology.

[FR Doc. 98-68 Filed 1-2-98; 8:45 am]

BILLING CODE 4210-32-M