[Federal Register Volume 62, Number 57 (Tuesday, March 25, 1997)]
[Notices]
[Pages 14160-14161]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-7427]


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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).

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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, 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