[Federal Register Volume 74, Number 38 (Friday, February 27, 2009)]
[Notices]
[Pages 8979-8981]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-4189]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-5291-N-01]


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

AGENCY: Office of the Chief Information Officer, HUD.

ACTION: Notice of a Computer Matching Program Between HUD and the DOJ.

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SUMMARY: Pursuant to the Privacy Act of 1974 (5 U.S.C. 552a), as 
amended by the Computer Matching and Privacy Protection Act of 1988, 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,'' HUD proposes to issue public notice 
of its intent to conduct a new computer matching program using data 
from DOJ's systems of records. The matching program will involve the 
utilization of a computer information system of HUD, the Credit Alert 
Interactive Verification Reporting System (CAIVRS), which will include 
DOJ's debtor files. The CAIVRS database includes delinquent debt 
information from the Departments of Agriculture, Education, Veterans 
Affairs and the Small Business Administration. Also, judgment lien data 
is included from the Department of Justice.

FOR FURTHER INFORMATION CONTACT: The Recipient Agency, Donna Robinson-
Staton, 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, Diane E. 
Watson, Debt Collection Management, Nationwide Central Intake Facility 
(NCIF), Department of Justice, 1620 L Street, NW., Washington, DC 
20036, telephone number (301) 427-0077. (These are not toll-free 
numbers.) A telecommunication device for hearing- and speech-impaired 
individuals TTY is available at 1-800-877-8339 (Federal Information 
Relay Service).

DATES: Effective Date: The effective date of the matching program shall 
begin March 30, 2009 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 both Houses of Congress, whichever is later, providing no 
comments are received which would result in a contrary determination.
    Comments Due Date: March 30, 2009.

SUPPLEMENTARY INFORMATION: This notice supersedes notice published in 
the Federal Register on April 5, 2006 at 71 FR 17129. This match will 
allow prescreening of applicants for debts owed or loans guaranteed by 
the federal government to ascertain if the applicant

[[Page 8980]]

is delinquent in paying a debt owed to or insured by the federal 
government. Before granting a loan, a lending agency and/or an 
authorized lending institution will be able to interrogate the CAIVRS 
debtor file, which contains the Social Security Numbers (SSNs) of HUD's 
delinquent debtors and defaulter files of the DOJ and verify that the 
loan applicant is not in default on a federal judgment or delinquent on 
direct or guaranteed loans of participating federal programs. As a 
result of the information produced by this match, the authorized users 
may not deny, terminate, or make a final decision on 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: The matching program will be conducted under the 
authority of 28 U.S.C. 2301(e) (3611 of the Federal Debt Collection 
Procedures Act of 1990, Pub. L. 101-647), 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 Circular A-129 is 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 
(Pub. L. 97-365; 5 U.S.C. 5514(a)), as amended by the Debt 
Collection Improvement Act of 1996 (Pub. L. 104-134, section 31001); 
Section 2653 of Public Law 98-369; 41 U.S.C. 253; 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 
objective in continuing the existing matching program is to give 
program agencies and their authorized financial institutions access to 
a system which allows them to prescreen 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. By 
identifying those individuals or corporations against whom the DOJ has 
filed a judgment, the federal government can expand the prescreening 
search of their loan applicants to further avoid lending to applicants 
who are credit risks. As part of this process, HUD will be provided 
access to DOJ's debtor data for prescreening purposes. 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. Participating Federal agency 
personnel or authorized lenders that require access to CAIVRS, 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 to the authorized users of CAIVRS:
     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 three 
years on a Title II insured or guaranteed home mortgage loans; or 
individuals who had a claim paid in the last three years on a Title I 
loan. The DOJ will provide HUD with debtor files maintained in two DOJ 
systems of records. The first is entitled ``Justice/JMD-006, Debt 
Collection Management System and the second is entitled ``Justice/USA-
015, Debt Collection Enforcement System. The DOJ debtor files contain 
information on individuals or corporations against who have defaulted 
on federal judgments. The DOJ 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 DOJ's data.
    Notice Procedures: HUD 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 DOJ 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 data elements from HUD's systems of records: 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, and 
financial judgment liens. 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 three 
years on a title II insured or guaranteed home mortgage loans; or 
individuals who has a claim paid in the last three years on a Title I 
loan, and

[[Page 8981]]

individuals or corporations against whom judgments have been filed by 
DOJ.
    Period of Match: Matching will begin at least 40 days from the date 
copies of the signed (by both agencies Data Integrity Boards) computer 
matching agreements are sent to OMB and 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 6, 2009.
Lynn Allen,
Acting Chief Information Officer.
[FR Doc. E9-4189 Filed 2-26-09; 8:45 am]
BILLING CODE 4210-67-P