[Federal Register Volume 68, Number 38 (Wednesday, February 26, 2003)]
[Notices]
[Pages 8921-8922]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-4446]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-4456-N-25]


Privacy Act of 1974; Notice of a Computer Matching Program

AGENCY: Office of the Chief Information Officer, (HUD).

ACTION: Notice of a computer matching program between the Department of 
Housing and Urban Development (HUD) and the Department of Veterans 
Affairs (VA).

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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), 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,'' HUD is issuing a public notice of its intent 
to conduct a recurring computer matching program with the Department of 
Veterans Affairs (VA) to utilize a computer information system of HUD, 
the Credit Alert Interactive Voice Response System (CAIVRS), with VA's 
debtor files. This match will allow prescreening of applicants for 
loans issued by or 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 VA 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 
and verify that the loan applicant is not in default on a Federal 
judgment or delinquent on direct or guaranteed loans of participating 
Federal agencies. The CAIVRS database contains delinquent debt 
information from the Departments of Agriculture, Education, Veteran 
Affairs, the Small Business Administration and judgment lien data from 
the Department of Justice.
    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 on March 
28, 2003, 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: March 28, 2003.

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 P8001, Washington, DC 20410, 
telephone number (202) 708-2374. (This is not a toll-free number.) A 
telecommunication device for hearing and speech-impaired individuals 
(TTY) is available at 1-800-877-8339 (Federal Information Relay 
Service). (This is not a toll-free number.)

FOR FURTHER INFORMATION FROM SOURCE AGENCY CONTACT: Don Toivola, Chief, 
Computer Specialist, Debt Management Center, U.S. Department of 
Veterans Affairs, Bishop Henry Whipple Federal Building, Room 156, 1 
Federal Drive, Ft. Snelling, MN 55111-4050, telephone number (612) 970-
5705. (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 OMB 
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 of the House of Representatives, the 
Committee on Governmental Affairs of the Senate, and the Office of 
Management and Budget.
    Authority: HUD has authority to collect and review mortgage data 
pursuant to the National Housing Act, as amended, 12 U.S.C. 1701 et 
seq., and related laws. The VA is authorized

[[Page 8922]]

pursuant to 38 U.S.C. 3710, to determine that any veteran who obtains a 
VA-guaranteed home loan poses a satisfactory credit risk. This computer 
matching will 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) Circulars A-129 (Managing Federal 
Credit Programs) and A-70 (Policies and Guidelines 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 
(Public Law 97-365), as amended by the Debt Collection Improvement Act 
of 1996 (Public Law 104-134, section 31001); and the Deficit Reduction 
Act of 1984, as amended.
    Objectives to be Met by the Matching Program: The matching program 
will allow VA access to a system that 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 
VA'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 
insured or guaranteed home mortgage loans under title II of the 
National Housing Act, or individuals who have defaulted on 
rehabilitation loans under section 312 of the Housing Act of 1964, or 
individuals who have had a claim paid in the last three years on a loan 
under title I of the National Housing Act. 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 VA will provide HUD with debtor files contained in its system 
of records entitled SS-VA26, Loan Guaranty Systems of Records. Central 
Accounts Receivable On Line System is a subsidiary of SS-VA26. HUD is 
maintaining VA's records only as a ministerial action on behalf of VA, 
not as a part of HUD's HUD/DEPT-2 system of records. VA's data contain 
information on individuals who have defaulted on their guaranteed 
loans. The VA 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 VA's data.
    Notice Procedures: HUD and the VA 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 VA 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 from HUD's systems of records, HUD/Dept-2: 
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 agreements 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. 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.

    Dated: February 11, 2003.
Gloria R. Parker,
Chief Technology Officer.
[FR Doc. 03-4446 Filed 2-25-03; 8:45 am]
BILLING CODE 4210-72-P