[Federal Register Volume 67, Number 235 (Friday, December 6, 2002)]
[Notices]
[Pages 72721-72723]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-30780]


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DEPARTMENT OF VETERANS AFFAIRS


Privacy Act of 1974; System of Records

AGENCY: Department of Veterans Affairs.

ACTION: Notice of amendment of system of records.

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SUMMARY: As required by the Privacy Act of 1974, 5 U.S.C. 552a(e), 
Notice is hereby given that the Department of Veterans Affairs (VA) is 
adding a new routine use to a VA system of records entitled ``Loan 
Guaranty Home, Condominium and Manufactured Home Loan Applicant 
Records, Specially Adapted Housing Applicant Records and Vendee Loan 
Applicant Records-VA'' (55VA26). The routine use will clarify the 
circumstances under which VA will provide individually identified 
information on veterans having active VA-guaranteed loans. VA will 
provide this information upon request, to individuals and entities that 
issue Interest Rate Reduction Refinancing Loans (IRRRL) where the 
requester has a pending IRRRL application from an individual who has an 
active VA-guaranteed loan. VA is also updating the Policies and 
Practices for Storing, Retrieving, Accessing, Retaining and Disposing 
of Records because VA is initiating a new, web-based application that 
will allow IRRRL lenders to obtain this information directly from the 
VA system.

DATES: Comments must be received on or before January 6, 2003. If no 
public comment is received during the 30 day review period allowed for 
public comment, or unless otherwise published in the Federal Register 
by VA, this routine use is effective January 6, 2003.

ADDRESSES: You may mail or hand deliver written comments concerning the 
proposed new routine use to the

[[Page 72722]]

Office of Regulations Management (02D), Department of Veterans Affairs, 
810 Vermont Avenue, NW., Washington, DC 20420; or fax comments to (202) 
273-9289; or e-mail comments to [email protected]. All 
relevant material received before January 6, 2003, will be considered. 
Comments will be available for public inspection at the above address 
in the Office of Regulations Management, Room 1158, between the hours 
of 8 a.m. and 4:30 p.m., Monday through Friday (except holidays).

FOR FURTHER INFORMATION CONTACT: Mr. Robert D. Finneran, Assistant 
Director for Policy and Valuation (262), Loan Guaranty Service, 
Veterans Benefits Administration, Department of Veterans Affairs, 
Washington, DC 20420, (202) 273-7368.

SUPPLEMENTARY INFORMATION: In the course of administering the VA loan 
guaranty program, VA must provide information to the lenders who make 
loans to veterans which VA guarantees. In the case of an IRRRL, a 
lender who is considering making such a loan to a loan applicant would 
need to know whether the veteran currently has an active VA loan on the 
books. Data concerning a veteran's use of the loan guaranty benefit is 
contained in the VA system of records entitled ``Loan Guaranty Home, 
Condominium and Manufactured Home Loan Applicant Records, Specially 
Adapted Housing Applicant Records and Vendee Loan Applicant Records-
VA'' (55VA26).
    VA has developed a new routine use for 55VA26 to permit VA to 
disclose individually identified veteran loan guaranty information from 
that system of records to an active VA lender, lender's agent, mortgage 
broker, or other program participant, as necessary to originate a VA 
IRRRL to that veteran.
    The proposed routine use will provide Privacy Act authority for VA 
to disclose this identified information to lenders only for the purpose 
of originating IRRRLs. Lenders must still comply with any applicable 
confidentiality requirements before disclosing any information to VA in 
order to learn whether the loan applicant has a current VA loan. 
Examples of confidentiality requirements are the rules providing for 
the protection of non-public personal information published by various 
Federal entities under 15 U.S.C. 6801-6809. See, e.g., 16 CFR part 313, 
12 CFR part 716.
    Currently lenders needing information to originate IRRRLs contact a 
VA facility either by telephone or e-mail. VA personnel then access 
internal VA records and obtain the requested information. VA personnel 
then communicate the necessary information to the requesting lenders by 
telephone or e-mail. Under the new procedure, recognized program 
participants will be able to use a VA-developed, Internet-based 
application to retrieve the data directly from VA records without the 
need of VA personnel. This will allow the lender almost instant access 
to the information required and eliminate the need for VA personnel to 
research and reply to the lender. This change is being made for reasons 
of improved efficiency. Of the approximately 15,000 VA-approved 
lenders, about 5,000 make VA-guaranteed home loans in a given year and 
could potentially need to request information from VA to originate a 
refinancing loan.
    VA takes very seriously its responsibility to securely maintain the 
privacy data maintained on veterans in VA systems of records and does 
not intend to release any information under this routine use that is 
not necessary to the processing of a particular transaction. Releases 
of information pursuant to this use will be limited to the case of a 
veteran applying for an IRRRL. The information provided will be limited 
to the VA loan number, veteran's name, entitlement code, original loan 
amount, guaranty amount, and status of the loan (i.e., active or paid 
in full).
    In order to obtain information from the VA system, the party 
requesting the information must establish the fact that it is a 
participant in the VA home loan program, through the use of the VA 
lender identification number assigned by VA Loan Guaranty Service to 
that party. The requester will log on to the application through the 
Internet using the requester's 10-digit VA lender ID and a password 
unique to the requester. Lending entities are required to keep the 
assigned passwords confidential in accordance with established VBA 
procedures, and to promptly report any compromise of their assigned 
passwords. The requester must also provide the veteran's name and 
social security number and such other information as may be necessary 
to identify the record or records in question.
    As a precaution, to ensure that the information is in fact being 
requested on behalf of the veteran to whom the record pertains, and in 
order to process a pending transaction with, or application of, a VA 
beneficiary, rather than for commercial solicitation purposes, the 
lender will have to supply either the 12-digit VA loan number or the 
month and year of the loan being refinanced. IRRRL lenders currently 
provide this information either orally or by e-mail when requesting 
information under the current system described above.
    VA is amending the Safeguards portion of the Policies and Practices 
for Storing, Retrieving, Accessing, Retaining, and Disposing of the 
Records in the System by adding a paragraph at the end of that portion 
to reflect the safeguards applicable to lender IRRRL access to the VA 
system.
    VA has determined that release of information under the 
circumstances described above is a necessary and proper use of 
information in this system of records and that the specific routine use 
proposed for the transfer of this information is appropriate.
    An altered system of records report and a copy of the revised 
system notice have been sent to the House of Representatives Committee 
on Government Reform and Oversight, the Senate Committee on 
Governmental Affairs, and the Office of Management and Budget (OMB) as 
required by 5 U.S.C. 552a(r) and guidelines issued by OMB (59 FR 37906, 
37916-18, July 25, 1994.)
    The proposed routine use will be added to the system of records 
entitled ``Loan Guaranty Home, Condominium and Manufactured Home Loan 
Applicant Records, Specially Adapted Housing Applicant Records, and 
Vendee Loan Applicant Records--VA'' (55VA26) as published at 40 FR 
38095, August 26, 1975, and amended at 48 FR 49961, October 28, 1983; 
51 FR 24781, July 8, 1986; 51 FR 28289, August 6, 1986; 52 FR 721, 
January 8, 1987; 53 FR 49818, December 9, 1988; 56 FR 2064, January 18, 
1991; 56 FR 15666, April 17, 1991; 58 FR 50629, September 28, 1993 and 
62 FR 35545 (July 1, 1997).

    Approved: November 15, 2002.
Anthony J. Principi,
Secretary of Veterans Affairs.

Notice of Amendment to System of Records

    The system of records identified as ``Loan Guaranty Home, 
Condominium and Manufactured Home Loan Applicant Records, Specially 
Adapted Housing Applicant Records and Vendee Loan Applicant Records--
VA'' (55VA26), published at 40 FR 38095, August 26, 1975 and amended at 
48 FR 49961, October 28, 1983; 51 FR 24781, July 8, 1986; 51 FR 28289, 
August 6, 1986; 52 FR 721, January 8, 1987; 53 FR 49818, December 9, 
1988; 56 FR 2064, January 18, 1991; 56 FR 15666, April 17, 1991; 58 FR 
50629, September 28, 1993; and 62 FR 35545 (July 1, 1997), is

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revised to add a new routine use number 34 as follows:
55VA26

SYSTEM NAME:
    Loan Guaranty Home, Condominium and Manufactured Home Loan 
Applicant Records, Specially Adapted Housing Applicant Records, and 
Vendee Loan Applicant Records--VA.
* * * * *

ROUTINE USES OF RECORDS MAINTAINED IN THE SYSTEM, INCLUDING CATEGORIES 
OF USERS AND THE PURPOSES OF SUCH USES:
* * * * *
    34. Any information in this system may be disclosed to an active VA 
lender, lender's agent, mortgage broker, or other program participant 
in response to a request from that individual or entity if that 
information is necessary in connection with the origination of a VA-
guaranteed Interest Rate Reduction Refinancing Loan (IRRRL). In order 
to obtain information under this routine use, the party requesting the 
information must establish the fact that it is a participant in the VA 
home loan program through the use of a VA lender identification number. 
The requester must also provide the veteran's name and social security 
number and the month and year of the loan being refinanced or the 12-
digit VA loan number.
* * * * *

Policies and practices for storing, retrieving, accessing, retaining, 
and disposing of records in the system:
* * * * *

Safeguards:
* * * * *
    A VA-approved, active VA lender, lender's agent, mortgage broker, 
or other program participant may obtain access to the computerized VA 
system maintaining this system of records for the purpose of learning 
whether an applicant for a VA-guaranteed IRRRL has a current VA-
guaranteed loan under the following circumstances. The lender must log 
on to the system using the unique 10-digit lender identification number 
assigned by VA and a unique password. The lender also must enter 
information identifying the specific veteran for whom the IRRRL lender 
seeks information, including the veteran's name, social security number 
and other identifying information, such as the 12-digit loan number for 
the veteran's current VA-guaranteed loan or the month and year of the 
loan.

[FR Doc. 02-30780 Filed 12-5-02; 8:45 am]
BILLING CODE 8320-01-P