[Federal Register Volume 73, Number 90 (Thursday, May 8, 2008)]
[Notices]
[Pages 26136-26138]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-10254]


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

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

Office of Federal Housing Enterprise Oversight


Privacy Act of 1974, as Amended; New System of Records

AGENCY: Office of Federal Housing Enterprise Oversight, HUD.

ACTION: Notice of New System of Records.

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

SUMMARY: In accordance with the Privacy Act of 1974, as amended, 5 
U.S.C. 552a (Privacy Act), the Office of Federal Housing Enterprise 
Oversight (OFHEO) is issuing public notice of its intent to establish a 
new Privacy Act system of records. The new system is titled Litigation 
and Enforcement Information System (LEIS). The proposed system of 
records is necessary, as it will contain OFHEO generated records in 
connection with civil and administrative proceedings, including 
enforcement actions brought by or against OFHEO, and other proceedings 
in which OFHEO participates or has an interest in, and are relative to 
enforcement of the Safety and Soundness of Freddie Mac and Fannie Mae. 
OFHEO will use the LEIS to assess and maintain administrative 
enforcement actions under the Federal Housing Enterprises Financial 
Safety and Soundness Act of 1992 (Safety and Soundness Act) (12 U.S.C. 
4501 et seq.) to defend itself and its interests in administrative or 
civil litigation relating to the Safety and Soundness Act and to make 
necessary referrals to other government agencies in the enforcement of 
Federal laws.

DATES: Written comments must be received by or before June 9, 2008. If 
no public comments are received, the proposed new system of records 
will become effective on June 17, 2008.

ADDRESSES: You may submit comments, identified by ``LEIS,'' by any of 
the following methods:
     Federal e-Rulemaking Portal: http://www.regulations.gov. 
Follow the instructions for submitting comments.
     Agency Web Site: http://www.ofheo.gov. Follow the 
instructions for submitting comments on the OFHEO Web site.
     E-mail: [email protected]. Please include ``LEIS'' in 
the subject line of the message.
     Mail: The mailing address for comments is: Alfred M. 
Pollard, General Counsel, Attention: Comments ``LEIS,'' Office of 
Federal Housing Enterprise Oversight, Fourth Floor, 1700 G Street, NW., 
Washington, DC 20552.
     Hand Delivery/Courier: The address for hand delivery/
courier is: Alfred M. Pollard, General Counsel, Attention: Comments 
``LEIS,'' Office of Federal Housing Enterprise Oversight, Fourth Floor, 
1700 G Street, NW., Washington, DC 20552. The package should be logged 
at the Guard Desk, First Floor, on business days between 9 a.m. and 3 
p.m.
    See SUPPLEMENTARY INFORMATION for additional information on 
submission and posting of comments.

FOR FURTHER INFORMATION CONTACT: Mark D. Laponsky, Deputy General 
Counsel, telephone (202) 414-3832 (not a toll-free number); Office of 
Federal Housing Enterprise Oversight, Fourth Floor, 1700 G Street, NW, 
Washington, DC 20552. The telephone number for the Telecommunications 
Device for the Deaf is (800) 877-8339 (TDD Only).

SUPPLEMENTARY INFORMATION:
    Instructions: OFHEO seeks public comments on the proposed new 
system and will take all comments into consideration before issuing the 
final notice. Comments should include the agency name and the reference 
``LEIS'' as well as your name and other contact information in the body 
of your comment. OFHEO further requests that comments submitted in hard 
copy also be accompanied by the electronic version in Microsoft[supreg] 
Word or in portable document format (PDF) on 3.5'' disk or CD-ROM.
    Posting and Public Availability of Comments: All comments received 
will be posted without change to http://www.regulations.gov, as well as 
on the OFHEO Internet Web site at http://www.ofheo.gov, and will 
include any personal information provided. In addition, copies of all 
comments received will be available for examination by the public on 
business days between the hours of 10 a.m. and 3 p.m., at the Office of 
Federal Housing Enterprise Oversight, Fourth Floor, 1700 G Street, NW., 
Washington, DC 20552. To make an appointment to inspect comments, 
please call the Office of General Counsel at (202) 414-6924.
    Introduction: This notice informs the public of OFHEO's proposal to 
establish and maintain a new system of records. This notice satisfies 
the Privacy Act requirement that an agency publish a system of records 
notice in the Federal Register when there is an addition to the 
agency's system of records. The proposed new system of records is: 
OFHEO-11-Litigation and Enforcement Information System (LEIS).
    Application of Privacy Act exemptions: It has been recognized by 
Congress that application of all requirements of the Act to certain 
categories of records may have an undesirable and often unacceptable 
effect upon agencies in the conduct of

[[Page 26137]]

necessary public business. Consequently, Congress established general 
exemptions and specific exemptions that could be used to exempt records 
from provisions of the Privacy Act. Congress also required that 
exempting records from provisions of the Privacy Act would require the 
head of an agency to publish a determination to exempt a record from 
the Act as a rule in accordance with the Administrative Procedures Act. 
Therefore, the Director of OFHEO has determined that certain records 
and information in the LEIS are exempt from certain requirements of the 
Privacy Act under 5 U.S.C. 552a(k)(2) as investigatory materials 
compiled for law enforcement purposes.
    As required by 5 U.S.C. 552a(r) of the Privacy Act, and pursuant to 
paragraph 4c of Appendix I to OMB Circular No. A-130, OFHEO has 
submitted a report describing the new system of records covered by this 
notice to the House Committee on Government Reform, the Senate 
Committee on Homeland Security and Governmental Affairs, and the Office 
of Management and Budget. The proposed new system of records described 
above is set forth in its entirety below.

    Dated: April 28, 2008.
James B. Lockhart III,
Director.
OFHEO-11

SYSTEM NAME:
    Litigation and Enforcement Information System.

SECURITY CLASSIFICATION:
    Most records are not classified. However, in some cases, records of 
certain individuals, or portions of some records may be classified in 
the interest of national security.

SYSTEM LOCATION:
    The LEIS is located in the Office of Federal Housing Enterprise 
Oversight, 1700 G Street, NW, Fourth Floor, Washington, DC 20552, and 
any alternate work site utilized by employees of the Office of Federal 
Housing Enterprise Oversight (OFHEO) or individuals assisting such 
employees.

CATEGORIES OF INDIVIDUALS COVERED BY THE SYSTEM:
    The LEIS contains information about individuals in connection with 
civil, regulatory and administrative proceedings, including enforcement 
proceedings, brought by or against OFHEO, and other proceedings in 
which OFHEO participates or has an interest. The LEIS contains the 
names and other personally identifiable information of individuals who 
are parties to such proceedings and actual or potential witnesses in 
connection with such proceedings.

CATEGORIES OF RECORDS IN THE SYSTEM:
    The LEIS includes records generated or assembled in connection with 
civil, regulatory and administrative proceedings, including enforcement 
proceedings, other proceedings brought by or against OFHEO, and other 
proceedings in which OFHEO participates or has an interest. Such 
records may include but are not limited to intra- or inter-agency 
correspondence or memoranda; criminal referral reports; federal, state 
or local criminal law enforcement agency investigatory reports, intra-
agency investigative reports; citizen accounts of events that may 
include allegations of wrongdoing; evidentiary material, transcripts of 
testimony and exhibits thereto, names of witnesses, discovery 
materials, and other documents generated or obtained in connection with 
the proceeding. The LEIS also includes records and documents generated 
in connection with court or administrative tribunal databases and 
electronic access services such as Public Access to Court Electronic 
Records (PACER). Note: Certain records contained in this system of 
records may be proprietary to other federal agencies. OFHEO will notify 
the proprietary agency of any request relating to such records and seek 
its guidance with respect to disposition. OFHEO may forward such a 
request to the proprietary agency for disposition under its 
regulations.

AUTHORITY FOR MAINTENANCE OF THE SYSTEM:
    The Safety and Soundness Act (12 U.S.C. 4513(b); and 12 U.S.C. 
4631-4636.)

PURPOSES:
    Information in this system is used by OFHEO to support its 
regulatory, supervisory and enforcement functions, and to represent its 
interests in connection with civil, regulatory or administrative 
proceedings, including enforcement actions brought by or against OFHEO, 
or in which OFHEO participates.

ROUTINE USES OF RECORDS MAINTAINED IN THE SYSTEM, INCLUDING CATEGORIES 
OF USERS AND THE PURPOSES OF SUCH USES:
    In addition to the conditions of disclosure under 5 U.S.C. 552a(b) 
and in addition to the general routine uses identified in the Prefatory 
Statement of General Routine Uses, 63 FR 9007 (February 23, 1998), it 
shall be a routine use to disclose information contained in this system 
for the purposes and to the users identified below:
    1. To the Department of Justice or any other federal government 
agency such as the Securities and Exchange Commission, or Congress or 
any foreign, state or local agency responsible for enforcing, 
investigating or prosecuting civil or criminal laws or regulations 
where the information is relevant to an enforcement proceeding, 
investigation or prosecution within such agency's jurisdiction, and as 
may be necessary to pursue or coordinate enforcement, administrative, 
regulatory, or other proceedings, investigations and inquiries;
    2. To a Federal or State court, magistrate, administrative law 
judge, administrative tribunal, or grand jury in the course of 
presenting evidence, including disclosures to counsel or witnesses in 
the course of discovery, litigation, or settlement negotiations and/or 
in response to subpoenas seeking documents or testimony relevant or 
potentially relevant to the subject proceeding; and, where relevant or 
potentially relevant to the proceeding, to the court or administrative 
tribunal databases and electronic access services such as PACER;
    3. To a consultant, person, or entity, including outside counsel, 
contractors, copying services, document database service providers, or 
other firms or individuals who contract or subcontract with OFHEO, to 
the extent necessary for the performance of the contract or subcontract 
and consistent with the purposes of this system of records. The 
recipient of the records shall be required to comply with the 
requirements of the Privacy Act of 1974, as amended (5 U.S.C. 552a).
    4. To the General Services Administration and the National Archives 
and Records Administration for the purpose of records management 
inspections conducted under statutory authority of 44 U.S.C. 2904 and 
2906.
    5. To appropriate agencies, entities, and persons when (a) OFHEO 
suspects or has confirmed that the security or confidentiality of 
information in the system of records has been compromised; (b) OFHEO 
has determined, that as a result of the suspected or confirmed 
compromise, there is a risk of harm to economic or property interests, 
identity theft or fraud, or harm to the security or integrity of this 
system or other systems or programs that rely upon the compromised 
information; and (c) the disclosure made to such agencies, entities, 
and persons is reasonably necessary to assist in connection with 
OFHEO's efforts to respond to the

[[Page 26138]]

suspected or confirmed compromise and prevent, minimize or remedy such 
harm.

DISCLOSURE TO CONSUMER REPORTING AGENCIES:
    Disclosures may be made from this system pursuant to 5 U.S.C. 
552a(b)(12) to consumer reporting agencies as defined in the Fair 
Credit Reporting Act (15 U.S.C. 1681a(f)) when OFHEO is trying to 
collect a claim of the Government under a law, except the Internal 
Revenue Code of 1986, in accordance with 31 U.S.C. 3711(e).

POLICIES AND PRACTICES FOR STORING, RETRIEVING, ACCESSING, RETAINING, 
AND DISPOSING OF RECORDS IN THE SYSTEM:
STORAGE:
    Records are stored in electronic format and in paper format in a 
secure location. Paper records are maintained in file folders, index 
cards, rolodex-type files, notebooks, or files. Electronic records are 
maintained on computer hard drives, network systems, magnetic tape, 
diskette, or other machine readable formats.

RETRIEVABILITY:
    Records are retrievable by subject name, title, or other personal 
identifier.

SAFEGUARDS:
    Electronic records are password protected and available only to 
authorized personnel. Paper documents are kept in locked offices and 
only available to authorized personnel. Access is restricted to staff 
who have a need to access the system in performance of their duties. 
Back up tapes are stored in a locked, controlled room in a secure 
location.

RETENTION AND DISPOSAL:
    These records will be retained for a minimum of seven years. The 
National Archives and Records Administration (NARA) will determine if 
the retention period should be longer than seven years. Paper records 
that have met the NARA approved schedule will be disposed of by 
shredding. Electronic records that have met the NARA approved schedule 
will be deleted, erased, or overwritten.

SYSTEM MANAGER AND ADDRESS:
    General Counsel, Office of Federal Housing Enterprise Oversight, 
1700 G Street, NW., Washington, DC 20552.

NOTIFICATION PROCEDURE:
    Contact the Privacy Act Officer, Office of Federal Housing 
Enterprise Oversight, 1700 G Street, NW., Fourth Floor, Washington, DC 
20552.

RECORD ACCESS PROCEDURES:
    The OFHEO regulation for providing access to records appears at 12 
CFR part 1702. If additional information or assistance is required, 
contact the Privacy Act Officer, Office of Federal Housing Enterprise 
Oversight, 1700 G Street, NW., Fourth Floor, Washington, DC 20552. 
Access to certain materials in this System of Records may be withheld 
or exempted under 5 U.S.C. 552a(d)(5) if compiled in reasonable 
anticipation of litigation or if subject to the attorney-client 
privilege or other recognized privileges.

CONTESTING RECORD PROCEDURES:
    The OFHEO regulation for contesting records procedures appears at 
12 CFR part 1702. If additional information or assistance is required, 
contact the Privacy Act Appeals Officer, Office of Federal Housing 
Enterprise Oversight, 1700 G Street, NW., Fourth Floor, Washington, DC 
20552.

RECORD SOURCE CATEGORIES:
    The information contained in these records is provided by the 
individual who is the subject of the record, the Federal National 
Mortgage Association or the Federal Home Loan Mortgage Corporation 
(collectively, ``Enterprises'') for whom the individual works or 
worked; witnesses; consultants to the Enterprise for whom the 
individual works or worked; consultants to OFHEO; U.S. attorneys, 
administrative tribunals, U.S. district courts; other federal, state, 
or local agencies; parties to the proceedings; or other sources of 
discovery relevant to the proceedings.

EXEMPTIONS CLAIMED FOR THE SYSTEM:
    Certain records and information in this system that are 
investigatory and compiled for law enforcement purposes are exempt 
under subsection 552a(k)(2) of the Privacy Act to the extent that 
information within the system meets the criteria of that subsection of 
the Act. Such information has been exempted from the provisions of 
subsections (c)(3); (d)(1), (2), (3) and (4); (e)(1), (3), (4)(G) and 
(I); and (f) of the 5 U.S.C. 552a; see 12 CFR part 1702.
    The exemption is necessary in order to protect information relating 
to law enforcement investigations from disclosure to subjects of 
investigations and others who could interfere with investigatory and 
law enforcement activities. Exemption will preclude subjects of 
investigations from frustrating investigations, will avoid disclosure 
of investigative techniques, will protect the identities and safety of 
confidential informants and of law enforcement personnel, will ensure 
OFHEO's ability to obtain information from human sources, will protect 
the privacy of third-parties, and will safeguard sensitive information.
    Certain records contained in this system of records may be 
proprietary to other federal agencies and subject to exemptions imposed 
by those agencies, including the criminal law enforcement investigatory 
material exemption of 5 U.S.C. 552a(j)(2).

 [FR Doc. E8-10254 Filed 5-7-08; 8:45 am]
BILLING CODE 4220-01-P