[Federal Register Volume 63, Number 2 (Monday, January 5, 1998)]
[Notices]
[Pages 247-248]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-68]


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

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.

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

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