[Federal Register Volume 73, Number 118 (Wednesday, June 18, 2008)]
[Notices]
[Pages 34780-34782]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-13876]


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

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-5130-N-25]


Privacy Act of 1974; Notice of a Computer Matching Program 
Between the U.S. Department of Housing and Urban Development (HUD) and 
the U.S. Department of Education (ED)

AGENCY: Office of the Chief Information Officer, HUD.

ACTION: Notice of a Computer Matching Program between HUD and ED.

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

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 ED to utilize a 
computer information system of HUD, the Credit Alert Interactive Voice 
Response System (CAIVRS), with ED's debtor files. HUD has revised the 
``records to be matched'' section of this notice to reflect the new HUD 
Privacy Act Systems of Records involved in the matching program. This 
update does not change the authority or objectives of the existing 
matching program.

DATES: Effective Date: The effective date of the matching program shall 
July 18, 2008 or at least 40 days from the date copies of the signed 
(by both agencies Data Integrity Boards (DIBs)) computer matching 
agreement are sent to the Office of Management and Budget (OMB) and 
Congress, whichever is later, providing no comments are received which 
would result in a contrary determination.

[[Page 34781]]

    Comments Due Date: July 18, 2008.

ADDRESSES: Interested persons are invited to submit comments regarding 
this notice to the Rules Docket Clerk, Office of General Counsel, 
Department of Housing and Urban Development, 451 Seventh Street, Room 
10276, 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 8 a.m. and 
5 p.m. weekdays at the above address.

FOR FURTHER INFORMATION CONTACT: Contact the ``Recipient Agency'' 
Departmental Privacy Act Officer, Department of Housing and Urban 
Development, 451 Seventh Street, SW., Room 2256, Washington, DC 20410, 
telephone number (202) 402-8073 or the ``Source Agency'' Department of 
Education, Federal Student Aid/Borrower Services, 830 First Street, 
NE., Room 41B4-UCP, Washington, DC 20202, telephone number (202) 377-
3212. [These are not toll-free numbers.] A telecommunication device for 
hearing- and speech-impaired individuals (TTY) is available at (800) 
877-8339 (Federal Information Relay Service).

SUPPLEMENTARY INFORMATION: HUD's CAIVRS database includes delinquent 
debt information from Education (ED), Veteran's Affairs (VA), Justice 
(DOJ), Small Business Administration (SBA), and the U.S. Department of 
Agriculture (USDA). This match will allow prescreening of applicants 
for debts owed to 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 ED 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, defaulters and defaulted debtor records of ED to verify that 
the loan applicant is not in default or delinquent on a direct or 
guaranteed loan of the participating federal programs of either agency. 
As a result of the information produced by this match, the authorized 
users may not deny, terminate, or make a final decision concerning 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.

Reporting of Matching Program

    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 Homeland 
Security and 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 Department of Education oversees and manages federal 
student aid programs pursuant to the Higher Education Act of 1965, as 
amended, 20 U.S.C. 1001 et seq. 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). 
One of the purposes of all Executive departments and agencies 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 by the 
Debt Collection Improvement Act of 1996; Section 2653 of Public Law 98-
369; the Federal Credit Reform Act of 1990, as amended; the Federal 
Debt Collection Procedures Act of 1990, the Chief Financial Officers 
Act of 1990, as amended; Executive Order 8248; the Cash Management 
Improvement Act Amendments of 1992; and pre-existing common law 
authority to charge interest on debts and to offset payments to collect 
debts administratively.

Objectives To Be Met by the Matching Program

    HUD's primary purpose for continuing the existing matching program 
is to permit prescreening of applicants for Federal Credit benefits, to 
ensure that applicants are not delinquent on a Federal debt or have 
defaulted on a direct or guaranteed loan. As part of this process, HUD 
will be provided access to ED's debtor data for prescreening purposes.
    In this computer matching program, each month HUD/CAIVRS receives 
limited information on borrowers who have defaulted on loans 
administered by participating Federal agencies. This information 
includes: Social Security Number (SSN) or Employer Identification 
Number (EIN), case number, Federal Agency identifying code, and record 
type. Participating agencies also provide HUD with a file containing 
authorized lenders/business partners. When federal agency personnel or 
authorized lenders access CAIVRS, they must enter a user authorization 
code followed by either an SSN or EIN (for businesses and non-profits). 
Only the following information is returned/displayed:
     Yes/No as to whether the holder of that SSN/EIN is in 
default on a Federal loan; and
     If Yes, then CAIVRS provides to the lender:
     Loan case number;
     Record type (claim, default, foreclosure, or judgment);
     Agency administering the loan program; and
     Phone  at that agency (to call to clear up the 
default)
     Confirmation Code associated with the query
    By law, processing of applications for Federal Credit benefits 
(such as government-insured loans) must be suspended when applicants 
are delinquent on Federal debt. Processing may continue only when the 
debtor satisfactorily resolves the debt (e.g., pays in full or 
renegotiates a new payment plan). To remove a CAIVRS sanction, the 
borrower must use the information provided to contact the agency that 
reported their SSN or EIN to HUD/CAIVRS.

Records To Be Matched

    HUD will use records from its systems of records entitled, HUD/SFH-
01, Single Family Default Monitoring System; HUD/SFH-02, Single Family 
Insurance System CLAIMS Subsystem; HUD/HS-55, Debt Collection Asset 
Management System; and HUD/HS-57, Single Family Mortgage Notes. The 
debtor files for programs involved are included in these systems 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 had their partial claim subordinate mortgage 
called due and payable and it has not been repaid in full); or who have 
any outstanding claims paid during the last 3 years on a Title II 
insured or guaranteed home mortgage loans; or

[[Page 34782]]

individuals who had a claim paid in the last 3 years on a Title I loan.
    ED will provide HUD with debtor files contained in its system of 
records (Higher Education Act, Title IV Program File, 18-11-05), 
originally published in the Federal Register at 64 FR 30163-66 (June 4, 
1999) and subsequently amended at 64 FR 72407 December 27, 1999). ED 
records from which the information is compiled are maintained in the 
Student Financial Assistance Collection system of records, 18-11-07, 64 
FR 30166 (June 4, 1999), as amended, 64 FR 72407 (December 27, 1999). 
ED's routine use for this match is published as routine use number one 
in the notice for the Student Financial Assistance Files, which permits 
disclosures of the pertinent information to HUD. ED's data contain 
information on individuals who have defaulted on their guaranteed 
loans. ED 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 ED's data and maintains these records 
only as a ministerial action on behalf of ED, and not as part of HUD's 
systems of records.

Notice Procedures

    HUD and ED 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). ED 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 ED 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, and home improvement loan debtors who are 
delinquent or in default (at least 90 days delinquent on their loans or 
who have had their partial claim subordinate mortgage called due and 
payable and it has not been paid in full); or who have any outstanding 
claims paid during the last 3 years on a title II insured or guaranteed 
home mortgage loans; or individuals who has a claim paid in the last 3 
years on a Title I loan. ED's data contain information on individuals 
who have defaulted on their guaranteed loans

Period of the Match

    Matching will begin at least 40 days from the date copies of the 
signed (by both agencies DIBs) computer matching agreement are sent to 
both Houses of Congress and OMB 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.

    Dated: June 6, 2008.
Joseph M. Milazzo,
Acting Chief Information Officer.
[FR Doc. E8-13876 Filed 6-17-08; 8:45 am]
BILLING CODE 4210-67-P