[Federal Register Volume 59, Number 202 (Thursday, October 20, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-26016]


[[Page Unknown]]

[Federal Register: October 20, 1994]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
Office of the Assistant Secretary for Administration
[Docket No. N-94-3826; FR-3797-N-01]

 

Privacy Act of 1974; Computer Matching Program

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

ACTION: Notice of a Computer Matching Program--HUD and Department of 
Justice (DOJ).

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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 
(Pub. L. 100-503), 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 Justice (DOJ) to utilize a computer 
information system of HUD, the Credit Alert Interactive Voice Response 
System (CAIVRS), with DOJ's debtor files. The CAIVRS data base now 
includes delinquent debt information from the Departments of 
Agriculture, Education and Veterans Affairs and the Small Business 
Administration. 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. Before granting a loan, a lending agency and/or 
an 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 debtor files of the DOJ 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. 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 delinquent or defaulted Federal obligations for HUD or other agency 
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 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 40 days 
after publication of this notice 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 Date: November 29, 1994.

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 FOR FURTHER INFORMATION FROM RECIPIENT 
AGENCY CONTACT: Jeanette Smith, Departmental Privacy Act Officer, 
Department of Housing and Urban Development, 451 7th Street, SW, 
Washington, DC 20410, telephone number (202) 708-2374. [This is not a 
toll-free number.]

FOR FURTHER INFORMATION FROM SOURCE AGENCY CONTACT: Diane J. Miller, 
Debt Collection Management, Department of Justice, 10th and 
Constitution Avenue, NW, Washington, DC 20530. Telephone number (202) 
514-5343. [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, in duplicate, 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 will be conducted under the authority of 28 
U.S.C. 2301(e) (3611 of the Federal Debt Collection Procedures Act of 
1990, Pub. L. 101-647), and Office of Management and Budget (OMB) 
Circular A-129 (Managing Federal Credit Programs) and A-70 (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.

Objectives To Be Met by the Matching Program

    By identifying those individuals or corporations against whom the 
DOJ has filed a judgment, the Federal Government can expand the 
prescreening search of their loan applicants to further avoid lending 
to applicants who are credit risks.

Records To Be Matched

    HUD will utilize its system of records entitled, Accounting 
Records, HUD/DEPT-2. 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 DOJ will provide HUD with its debtor files contained in its 
system of records entitled, Debt Collection Management System, JUSTICE/
JMD-006. HUD is maintaining DOJ's records only as a ministerial action 
on behalf of DOJ, not as a part of HUD's HUD/DEPT-2 system of records. 
DOJ's data contain information on individuals or corporations who have 
defaulted on Federal judgments. The DOJ 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 
DOJ's data.

Notice Procedures

    HUD 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 DOJ 
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, records of foreclosures, and Federal 
judgment liens.
    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, rehabilitation loan debtors who are delinquent or in default on 
their loans, and individuals or corporations against whom judgments 
have been filed by DOJ.

Period of the Match

    Matching will begin at lease 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 40 days from the date this 
Notice is published in the Federal Register, whichever is later, 
providing 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, October 14, 1994.
Marilynn A. Davis,
Assistant Secretary for Administration.
[FR Doc. 94-26016 Filed 10-19-94; 8:45 am]
BILLING CODE 4210-12-M