[Federal Register Volume 62, Number 71 (Monday, April 14, 1997)]
[Notices]
[Pages 18139-18141]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-9544]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-3918-N-11]


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 Small 
Business Administration (SBA).

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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 (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 Small Business Administration (SBA) 
to utilize a computer information system of HUD, the Credit Alert 
Interactive Voice Response System (CAIVRS), with SBA's debtor files. In 
addition to HUD data, the CAIVRS data base includes delinquent debt 
information from the Departments of Agriculture, Education and Veterans 
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

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if the applicant is delinquent in paying a debt owed to or insured by 
the Federal Government for HUD or SBA 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 SBA and 
verify that the loan applicant is not in 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 delinquent or defaulted Federal obligations for HUD or SBA 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.

EFFECTIVE DATE: Computer matching is expected to begin at least 40 days 
from the date this computer matching notice is published, providing no 
comments are received which would result in a contrary determination. 
It will be accomplished 18 months from the beginning date; Comments Due 
Date: May 14, 1997.

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 St., SW., Room 
4176, Washington, DC 20410, Telephone Number (202) 708-2374. [This is 
not a toll-free number.]

FOR FURTHER INFORMATION FROM SOURCE AGENCY CONTACT: Ben Saars, Office 
of Financial Assistance, Small Business Administration, 409 Third 
Street, SW., Washington, DC 20416, Telephone Number (202) 401-1469. 
[This is not a toll-free number.]

Reporting

    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 a report, in 
duplicate, 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 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.

Objectives To Be Met by the Matching Program

    The matching program will allow SBA 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 SBA 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 SBA will provide HUD with debtor files contained in its system 
of records entitled, Loan Case File (SBA 075). HUD is maintaining SBA's 
records only as a ministerial action on behalf of SBA, not as a part of 
HUD's HUD/DEPT-2 system of records. SBA's data contain information on 
individuals who have defaulted on their direct loans. The SBA 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 SBA's data.

Notice Procedures

    HUD and the SBA 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 SBA have published 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 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

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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, April 3, 1997.
Steven M. Yohai,
Chief Information Officer.
[FR Doc. 97-9544 Filed 4-11-97; 8:45 am]
BILLING CODE 4210-01-M